Regal Beloit (RBC) Lifted to “Hold” at Zacks Investment Research

Regal Beloit (NYSE:RBC) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued on Thursday.

According to Zacks, “Over the past three months, Regal Beloit's shares have outperformed the industry. In the fourth quarter of 2018, the company's earnings of $1.41 surpassed the estimate by 7.6% while grew 22.6% year over year. For 2019, the company anticipates gaining from pricing and solid product portfolio. Adjusted earnings per share are expected to be $6.15-$6.55, reflecting growth from $6.00 in 2018. Organic sales are predicted to increase in a low- to mid-single digit. However, rising prices of raw materials (on account of tariffs and other inflationary pressures) might keep creating problems in the quarters ahead. Pricing actions might be a relief. Also, weakness in business in China and Europe will be a headwind in 2019. Further, high customer concentration risks and cyclical nature of business, as well as high debt levels and forex woes, might dent near-term results of the company.”

A number of other analysts also recently commented on the stock. Wells Fargo & Co boosted their price target on shares of Regal Beloit from $75.00 to $85.00 and gave the stock a “market perform” rating in a research report on Wednesday. Royal Bank of Canada restated a “hold” rating on shares of Regal Beloit in a research report on Tuesday. CIBC restated a “market perform” rating on shares of Regal Beloit in a research report on Tuesday, January 8th. Oppenheimer downgraded shares of Regal Beloit from an “outperform” rating to a “market perform” rating in a research report on Tuesday, January 8th. Finally, Wolfe Research downgraded shares of Regal Beloit from an “outperform” rating to a “market perform” rating in a research report on Tuesday, January 8th. Nine investment analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. Regal Beloit has a consensus rating of “Hold” and a consensus price target of $88.67.

NYSE:RBC traded up $0.23 during mid-day trading on Thursday, hitting $80.68. The stock had a trading volume of 4,879 shares, compared to its average volume of 227,109. The company has a market cap of $3.54 billion, a PE ratio of 13.45, a P/E/G ratio of 1.28 and a beta of 1.50. Regal Beloit has a 52 week low of $66.04 and a 52 week high of $86.75. The company has a quick ratio of 1.42, a current ratio of 2.61 and a debt-to-equity ratio of 0.54.

Regal Beloit (NYSE:RBC) last issued its quarterly earnings data on Monday, February 4th. The industrial products company reported $1.41 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.31 by $0.10. Regal Beloit had a net margin of 6.34% and a return on equity of 11.14%. The firm had revenue of $881.70 million for the quarter, compared to the consensus estimate of $864.76 million. During the same period last year, the firm posted $1.14 EPS. Regal Beloit’s quarterly revenue was up 7.4% compared to the same quarter last year. As a group, equities analysts anticipate that Regal Beloit will post 6.44 EPS for the current year.

Institutional investors and hedge funds have recently made changes to their positions in the company. Massachusetts Financial Services Co. MA grew its stake in shares of Regal Beloit by 8.0% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 1,382,986 shares of the industrial products company’s stock worth $114,027,000 after purchasing an additional 101,878 shares during the last quarter. Panagora Asset Management Inc. grew its stake in shares of Regal Beloit by 104.7% in the 3rd quarter. Panagora Asset Management Inc. now owns 223,670 shares of the industrial products company’s stock worth $18,442,000 after purchasing an additional 114,397 shares during the last quarter. Jane Street Group LLC acquired a new position in shares of Regal Beloit in the 2nd quarter worth approximately $458,000. Polaris Capital Management LLC grew its stake in shares of Regal Beloit by 28.4% in the 3rd quarter. Polaris Capital Management LLC now owns 40,200 shares of the industrial products company’s stock worth $3,314,000 after purchasing an additional 8,900 shares during the last quarter. Finally, The Manufacturers Life Insurance Company grew its stake in shares of Regal Beloit by 0.6% in the 3rd quarter. The Manufacturers Life Insurance Company now owns 545,777 shares of the industrial products company’s stock worth $44,999,000 after purchasing an additional 3,032 shares during the last quarter. 92.16% of the stock is currently owned by institutional investors.

About Regal Beloit

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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