According to Zacks, “Over the past three months, Regal Beloit's shares have outperformed the industry. We believe that solid product portfolio, effective pricing actions and policy of rewarding shareholders handsomely will work for the company in the quarters ahead. For 2019, it anticipates adjusted earnings per share of $6.15-$6.55, reflecting growth from $6.00 in 2018. However, weakness in business in China and Europe will be a headwind in 2019. Also, high customer concentration risks and cyclical nature of business, as well as forex woes, might dent near-term results of the company. Rising debt, if unchecked, can inflate Regal Beloit's financial obligations and subsequently hurt profitability. Moreover, the company’s extensive operations has exposed it to risks arising from unfavorable movements in foreign currencies and geopolitical issues.”
RBC has been the subject of several other research reports. Wells Fargo & Co lifted their price objective on shares of Regal Beloit from $75.00 to $85.00 and gave the company a market perform rating in a research note on Wednesday, February 6th. Oppenheimer lowered shares of Regal Beloit from an outperform rating to a market perform rating in a research note on Tuesday, January 8th. Royal Bank of Canada reiterated a hold rating on shares of Regal Beloit in a research note on Tuesday, February 5th. CIBC reiterated a market perform rating on shares of Regal Beloit in a research note on Tuesday, January 8th. Finally, Wolfe Research lowered shares of Regal Beloit from an outperform rating to a market perform rating in a research note on Tuesday, January 8th. Seven equities research analysts have rated the stock with a hold rating and one has given a buy rating to the company. The company has an average rating of Hold and a consensus target price of $90.83.
Regal Beloit (NYSE:RBC) last released its quarterly earnings data on Monday, May 6th. The industrial products company reported $1.43 earnings per share for the quarter, beating the consensus estimate of $1.42 by $0.01. The company had revenue of $853.80 million during the quarter, compared to analyst estimates of $882.61 million. Regal Beloit had a net margin of 6.34% and a return on equity of 11.18%. Regal Beloit’s revenue for the quarter was down 2.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.34 EPS. Analysts forecast that Regal Beloit will post 6.43 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Friday, July 12th. Investors of record on Friday, June 28th will be given a $0.30 dividend. The ex-dividend date of this dividend is Thursday, June 27th. This represents a $1.20 annualized dividend and a yield of 1.42%. This is an increase from Regal Beloit’s previous quarterly dividend of $0.28. Regal Beloit’s dividend payout ratio (DPR) is presently 18.67%.
In related news, VP John Avampato sold 2,929 shares of Regal Beloit stock in a transaction on Friday, February 8th. The shares were sold at an average price of $80.37, for a total value of $235,403.73. Following the completion of the sale, the vice president now owns 19,929 shares of the company’s stock, valued at approximately $1,601,693.73. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO Mark Joseph Gliebe sold 13,191 shares of Regal Beloit stock in a transaction on Tuesday, February 19th. The shares were sold at an average price of $83.23, for a total transaction of $1,097,886.93. Following the completion of the sale, the chief executive officer now directly owns 259,220 shares of the company’s stock, valued at approximately $21,574,880.60. The disclosure for this sale can be found here. In the last three months, insiders sold 21,862 shares of company stock valued at $1,815,734. 1.90% of the stock is currently owned by insiders.
A number of hedge funds and other institutional investors have recently bought and sold shares of RBC. Norges Bank acquired a new stake in Regal Beloit in the 4th quarter valued at $47,865,000. Thrivent Financial for Lutherans boosted its holdings in Regal Beloit by 2,513.8% during the 4th quarter. Thrivent Financial for Lutherans now owns 398,298 shares of the industrial products company’s stock worth $27,958,000 after acquiring an additional 383,060 shares during the last quarter. Bank of Montreal Can boosted its holdings in Regal Beloit by 152.3% during the 1st quarter. Bank of Montreal Can now owns 550,153 shares of the industrial products company’s stock worth $45,040,000 after acquiring an additional 332,128 shares during the last quarter. LSV Asset Management boosted its holdings in Regal Beloit by 23.5% during the 4th quarter. LSV Asset Management now owns 1,712,551 shares of the industrial products company’s stock worth $119,964,000 after acquiring an additional 325,400 shares during the last quarter. Finally, BlackRock Inc. boosted its holdings in Regal Beloit by 3.0% during the 4th quarter. BlackRock Inc. now owns 4,559,846 shares of the industrial products company’s stock worth $319,416,000 after acquiring an additional 131,813 shares during the last quarter. 93.58% of the stock is 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 transmission products worldwide. It operates through three segments: Commercial and Industrial Systems, Climate Solutions, and Power Transmission Solutions.
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