Regal Beloit (RBC) Downgraded by Zacks Investment Research

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

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.”

Other research analysts also recently issued reports about the company. Royal Bank of Canada reaffirmed a “buy” rating and set a $90.00 target price (down from $95.00) on shares of Regal Beloit in a report on Monday, November 5th. Goldman Sachs Group started coverage on Regal Beloit in a report on Wednesday, October 3rd. They set a “buy” rating and a $95.00 target price on the stock. CIBC reaffirmed a “market perform” rating on shares of Regal Beloit in a report on Tuesday. Oppenheimer downgraded Regal Beloit from an “outperform” rating to a “market perform” rating in a report on Tuesday. Finally, Wolfe Research downgraded Regal Beloit from an “outperform” rating to a “market perform” rating in a report on Tuesday. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and three have assigned a buy rating to the stock. The stock currently 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 P/E/G ratio of 1.10 and a beta of 1.47. Regal Beloit has a 12 month low of $66.04 and a 12 month high of $86.75. The company has a debt-to-equity ratio of 0.54, a quick ratio of 1.42 and a current ratio of 2.61.

Regal Beloit (NYSE:RBC) last announced its earnings results on Monday, November 5th. The industrial products company reported $1.67 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.61 by $0.06. The firm had revenue of $925.40 million for the quarter, compared to the consensus estimate of $924.18 million. Regal Beloit had a return on equity of 10.73% and a net margin of 6.34%. The business’s quarterly revenue was up 8.0% compared to the same quarter last year. During the same period in the previous year, the business earned $1.39 EPS. On average, equities research analysts forecast that Regal Beloit will post 5.91 EPS for the current year.

Several hedge funds have recently bought and sold shares of the company. First Hawaiian Bank bought a new stake in Regal Beloit in the 3rd quarter valued at about $169,000. C M Bidwell & Associates Ltd. increased its position 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 buying an additional 1,385 shares in the last quarter. Ifrah Financial Services Inc. bought a new stake in Regal Beloit in the 3rd quarter valued at about $207,000. Virtu Financial LLC bought a new stake in Regal Beloit in the 3rd quarter valued at about $213,000. Finally, Stevens Capital Management LP bought a new stake in Regal Beloit in the 3rd quarter valued at about $233,000. 92.65% of the stock is owned by hedge funds and other 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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