Zacks Investment Research upgraded shares of Regal Beloit (NYSE:RBC) from a sell rating to a hold rating in a report published on Monday, Zacks.com reports. They currently have $81.00 price objective on the industrial products company’s stock.
According to Zacks, “Year to date, Regal Beloit's shares have outperformed the industry. We believe that the company stands to benefit from solid product portfolio, productivity enhancement initiatives and inorganic actions. It is worth mentioning here that the company completed divestment of the highly engineered drives and control systems business in the first quarter of 2019. Acquired assets added 3.9% to sales growth in the quarter. Also, the company's policy of rewarding shareholders handsomely works in its favor. However, the company suffers from customer concentration risks, divestment issues, forex woes and cyclical nature of business. A highly leveraged balance sheet can inflate its financial obligations and hurt profitability. For 2019, it revised organic sales growth projection from low to mid-single digit to a low-single digit.”
Several other equities research analysts have also weighed in on RBC. Royal Bank of Canada restated a hold rating on shares of Regal Beloit in a report on Tuesday, May 7th. BMO Capital Markets dropped their price target on Regal Beloit from $95.00 to $93.00 and set a market perform rating on the stock in a research report on Wednesday, May 8th. Seven investment analysts have rated the stock with a hold rating and one has issued a buy rating to the company’s stock. Regal Beloit has an average rating of Hold and an average target price of $88.80.
Regal Beloit (NYSE:RBC) last announced its quarterly earnings results on Monday, August 5th. The industrial products company reported $1.52 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $1.63 by ($0.11). The firm had revenue of $873.70 million for the quarter, compared to analyst estimates of $903.84 million. Regal Beloit had a net margin of 7.15% and a return on equity of 11.24%. The firm’s quarterly revenue was down 9.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.60 earnings per share. On average, equities research analysts predict that Regal Beloit will post 6.31 EPS for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 11th. Stockholders of record on Friday, September 27th will be given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.58%. The ex-dividend date is Thursday, September 26th. Regal Beloit’s dividend payout ratio is presently 20.00%.
Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. AJO LP grew its position in Regal Beloit by 465.7% in the first quarter. AJO LP now owns 446,457 shares of the industrial products company’s stock valued at $36,551,000 after acquiring an additional 367,540 shares during the period. Geode Capital Management LLC grew its position in Regal Beloit by 2.7% in the fourth quarter. Geode Capital Management LLC now owns 519,839 shares of the industrial products company’s stock valued at $36,413,000 after acquiring an additional 13,442 shares during the period. Lazard Asset Management LLC grew its position in Regal Beloit by 28.5% in the first quarter. Lazard Asset Management LLC now owns 137,895 shares of the industrial products company’s stock valued at $11,289,000 after acquiring an additional 30,545 shares during the period. The Manufacturers Life Insurance Company grew its position in Regal Beloit by 0.3% in the first quarter. The Manufacturers Life Insurance Company now owns 561,673 shares of the industrial products company’s stock valued at $45,984,000 after acquiring an additional 1,410 shares during the period. Finally, Foundry Partners LLC grew its position in Regal Beloit by 9.0% in the first quarter. Foundry Partners LLC now owns 233,040 shares of the industrial products company’s stock valued at $19,079,000 after acquiring an additional 19,166 shares during the period. Institutional investors and hedge funds own 91.31% of the company’s stock.
Regal Beloit Company Profile
Regal Beloit Corporation, together with its subsidiaries, designs, manufactures, and sells electric motors, electrical motion controls, and power generation and transmission products worldwide. It operates through three segments: Commercial and Industrial Systems, Climate Solutions, and Power Transmission Solutions.
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