Zacks Investment Research lowered shares of Regal Beloit (NYSE:RBC) from a hold rating to a sell rating in a report published on Thursday morning.
According to Zacks, “In the past month, Regal Beloit's shares have underperformed the industry. Currently, the company is grappling with adverse impacts of rising costs and expenses. In the third quarter of 2018, its costs of sales increased 8.4% year over year and gross margin was down 30 basis points (bps). Rising prices of both aluminum and steel on account of Section 232 tariff as well as secondary inflation impact on the purchase of certain other components that include aluminum and steel as inputs are creating problems. Further, headwinds like high customer concentration risks and cyclical nature of business, as well as high debt levels, might dent near-term results of the company. In the past 60 days, the company's earnings estimates declined for 2019.”
Several other research firms have also recently weighed in on RBC. Royal Bank of Canada restated a buy rating and issued a $90.00 price objective (down previously from $95.00) on shares of Regal Beloit in a research report on Monday, November 5th. Goldman Sachs Group started coverage on shares of Regal Beloit in a research report on Wednesday, October 3rd. They issued a buy rating and a $95.00 price objective for the company. CIBC restated a market perform rating on shares of Regal Beloit in a research report on Tuesday, January 8th. Oppenheimer cut shares of Regal Beloit from an outperform rating to a market perform rating in a research report on Tuesday, January 8th. Finally, Wolfe Research lowered shares of Regal Beloit from an outperform rating to a market perform rating in a report on Tuesday, January 8th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and three have assigned a buy rating to the company’s stock. Regal Beloit presently has an average rating of Hold and an average price target of $89.13.
Shares of RBC opened at $71.63 on Thursday. The stock has a market cap of $3.10 billion, a price-to-earnings ratio of 14.71, a price-to-earnings-growth ratio of 1.10 and a beta of 1.47. The company has a debt-to-equity ratio of 0.54, a current ratio of 2.61 and a quick ratio of 1.42. Regal Beloit has a 12 month low of $66.04 and a 12 month high of $86.75.
Regal Beloit (NYSE:RBC) last announced its quarterly earnings results on Monday, November 5th. The industrial products company reported $1.67 EPS for the quarter, topping analysts’ consensus estimates of $1.61 by $0.06. Regal Beloit had a net margin of 6.34% and a return on equity of 10.73%. The firm had revenue of $925.40 million during the quarter, compared to analysts’ expectations of $924.18 million. During the same quarter last year, the company earned $1.39 earnings per share. The company’s revenue for the quarter was up 8.0% compared to the same quarter last year. As a group, sell-side analysts anticipate that Regal Beloit will post 5.91 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Friday, January 11th. Investors of record on Friday, December 28th were given a $0.28 dividend. The ex-dividend date of this dividend was Thursday, December 27th. This represents a $1.12 annualized dividend and a yield of 1.56%. Regal Beloit’s dividend payout ratio is currently 23.00%.
A number of institutional investors and hedge funds have recently bought and sold shares of RBC. CenturyLink Investment Management Co grew its stake in Regal Beloit by 3.4% in the 4th quarter. CenturyLink Investment Management Co now owns 15,500 shares of the industrial products company’s stock valued at $1,086,000 after buying an additional 514 shares during the last quarter. Stone Ridge Asset Management LLC boosted its position in shares of Regal Beloit by 3.1% during the 3rd quarter. Stone Ridge Asset Management LLC now owns 23,476 shares of the industrial products company’s stock worth $1,936,000 after acquiring an additional 700 shares in the last quarter. Aperio Group LLC lifted its stake in Regal Beloit by 3.8% in the 3rd quarter. Aperio Group LLC now owns 19,846 shares of the industrial products company’s stock valued at $1,636,000 after purchasing an additional 732 shares during the last quarter. C M Bidwell & Associates Ltd. lifted its stake in Regal Beloit by 150.5% in the 3rd quarter. C M Bidwell & Associates Ltd. now owns 2,305 shares of the industrial products company’s stock valued at $190,000 after purchasing an additional 1,385 shares during the last quarter. Finally, Vident Investment Advisory LLC lifted its stake in Regal Beloit by 4.1% in the 3rd quarter. Vident Investment Advisory LLC now owns 37,608 shares of the industrial products company’s stock valued at $3,101,000 after purchasing an additional 1,494 shares during the last quarter. 92.65% of the stock is currently owned by institutional investors and hedge funds.
Regal Beloit Company Profile
Regal Beloit Corporation, together with its subsidiaries, designs, manufactures, and sells electric motors, electrical motion controls, and power generation and power transmission products worldwide. It operates through three segments: Commercial and Industrial Systems, Climate Solutions, and Power Transmission Solutions.
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