Rexnord (RXN) Rating Increased to Buy at Zacks Investment Research

Rexnord (NYSE:RXN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Monday. The brokerage currently has a $29.00 price target on the industrial products company’s stock. Zacks Investment Research‘s price objective points to a potential upside of 20.38% from the company’s current price.

According to Zacks, “In the past year, Rexnord's shares have outperformed the industry. In second-quarter fiscal 2019, the company's adjusted earnings trumped the Zacks Consensus Estimate by 12.2%. The company expects to gain from product innovation, strengthening demand in end markets, supply-chain optimization and footprint-repositioning programs as well as inorganic activities. World Dryer and Centa Power buyouts are expected to boost the company's businesses while its plans to divest VAG operations are anticipated to free resources, which can be used for debt reduction. Core sales growth is predicted to be in a mid-single digit. In the past 60 days, earnings estimates on the stock improved for both fiscal 2019 and fiscal 2020.”

A number of other research firms have also recently commented on RXN. Goldman Sachs Group assumed coverage on Rexnord in a research note on Tuesday, October 2nd. They issued a “neutral” rating and a $31.00 target price for the company. Oppenheimer raised their target price on Rexnord from $35.00 to $37.00 and gave the company a “buy” rating in a research note on Wednesday, October 10th. ValuEngine upgraded Rexnord from a “hold” rating to a “buy” rating in a research note on Friday, November 16th. Credit Suisse Group reiterated a “neutral” rating and set a $31.00 price objective on shares of Rexnord in a research note on Friday, November 23rd. Finally, TheStreet upgraded Rexnord from a “c+” rating to a “b-” rating in a research note on Monday, December 3rd. Four equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and a consensus price target of $32.25.

RXN opened at $24.09 on Monday. The company has a market capitalization of $2.67 billion, a PE ratio of 17.42, a PEG ratio of 0.89 and a beta of 1.49. The company has a debt-to-equity ratio of 1.17, a current ratio of 2.23 and a quick ratio of 1.50. Rexnord has a 52 week low of $23.75 and a 52 week high of $32.11.

Rexnord (NYSE:RXN) last released its earnings results on Tuesday, October 30th. The industrial products company reported $0.46 EPS for the quarter, beating the Zacks’ consensus estimate of $0.42 by $0.04. The company had revenue of $524.80 million during the quarter, compared to analysts’ expectations of $516.66 million. Rexnord had a positive return on equity of 16.99% and a negative net margin of 0.89%. The firm’s revenue for the quarter was up 15.6% compared to the same quarter last year. During the same quarter last year, the business posted $0.32 EPS. As a group, research analysts expect that Rexnord will post 1.75 earnings per share for the current fiscal year.

In other Rexnord news, insider Craig Wehr sold 14,964 shares of Rexnord stock in a transaction on Friday, November 30th. The stock was sold at an average price of $28.00, for a total value of $418,992.00. Following the completion of the sale, the insider now owns 22,518 shares of the company’s stock, valued at approximately $630,504. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Theodore D. Crandall bought 4,000 shares of Rexnord stock in a transaction on Thursday, November 1st. The stock was acquired at an average cost of $27.84 per share, with a total value of $111,360.00. Following the acquisition, the director now owns 20,330 shares in the company, valued at approximately $565,987.20. The disclosure for this purchase can be found here. Insiders have sold 29,964 shares of company stock valued at $850,167 in the last quarter. 4.50% of the stock is owned by company insiders.

Several institutional investors have recently bought and sold shares of RXN. First Trust Advisors LP grew its holdings in shares of Rexnord by 11.9% in the 2nd quarter. First Trust Advisors LP now owns 442,205 shares of the industrial products company’s stock worth $12,850,000 after purchasing an additional 47,044 shares during the last quarter. Rhumbline Advisers grew its holdings in Rexnord by 2.2% during the 2nd quarter. Rhumbline Advisers now owns 107,108 shares of the industrial products company’s stock worth $3,113,000 after acquiring an additional 2,257 shares during the last quarter. Bank of New York Mellon Corp grew its holdings in Rexnord by 10.3% during the 2nd quarter. Bank of New York Mellon Corp now owns 1,767,648 shares of the industrial products company’s stock worth $51,368,000 after acquiring an additional 165,561 shares during the last quarter. SG Americas Securities LLC grew its holdings in Rexnord by 22.3% during the 2nd quarter. SG Americas Securities LLC now owns 9,266 shares of the industrial products company’s stock worth $269,000 after acquiring an additional 1,692 shares during the last quarter. Finally, Quantitative Systematic Strategies LLC grew its holdings in Rexnord by 53.8% during the 2nd quarter. Quantitative Systematic Strategies LLC now owns 17,510 shares of the industrial products company’s stock worth $509,000 after acquiring an additional 6,126 shares during the last quarter.

About Rexnord

Rexnord Corporation designs, manufactures, and markets process and motion control, and water management products worldwide. It operates in two segments, Process & Motion Control Platform and Water Management Platform. The company offers table top conveying chain and related accessories, metal conveying and engineered woven metals, gearing and gear drives, conveying equipment, industrial chain, and custom assemblies; custom-engineered, application-specific miniature gearboxes, and motion control assemblies and components used in aerospace, defense, medical equipment, robotics, semiconductor, instrumentation, and satellite communications; and shaft management products, including couplings, torque limiters, electromagnetic clutches and brakes, industrial bearings, and shaft locking assemblies.

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