According to Zacks, “Regal Beloit’s long-term growth strategy involves organic growth through new product development, coupled with tactical investments in emerging markets through an aggressive acquisition policy. Regal Beloit continues to focus on prudent investment decisions for a disciplined capital allocation, strong and flexible balance sheet position and cash flow enhancement to support dividend growth. The company’s robust operating platform and an efficient management team are further expected to aid execution of its strategic priorities and drive net asset value. However, increased concentration risks and high R&D and integration costs related to its acquisitions reduce its profitability to some extent. The company has a dismal earnings history, having missed estimates thrice over the trailing four quarters. Regal Beloit’s earnings are susceptible to exchange rate volatility, which undermine its growth potential.”
Other analysts have also issued research reports about the company. Credit Suisse Group AG reaffirmed a buy rating on shares of Regal Beloit Corp. in a research note on Saturday, July 9th. Jefferies Group reissued a hold rating on shares of Regal Beloit Corp. in a research note on Friday, July 1st. TheStreet raised Regal Beloit Corp. from a hold rating to a buy rating in a research note on Thursday, August 18th. Finally, BMO Capital Markets lowered Regal Beloit Corp. from an outperform rating to a market perform rating and dropped their price objective for the company from $76.00 to $66.00 in a research note on Tuesday, August 2nd. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating and three have assigned a buy rating to the company’s stock. Regal Beloit Corp. presently has an average rating of Hold and a consensus target price of $64.25.
Shares of Regal Beloit Corp. (NYSE:RBC) opened at 58.11 on Monday. The firm has a market cap of $2.60 billion, a P/E ratio of 18.34 and a beta of 1.69. The company has a 50-day moving average of $61.04 and a 200 day moving average of $60.26. Regal Beloit Corp. has a 52-week low of $47.77 and a 52-week high of $68.45.
Regal Beloit Corp. (NYSE:RBC) last issued its earnings results on Monday, August 8th. The company reported $1.14 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $1.24 by $0.10. The firm earned $838.60 million during the quarter, compared to analysts’ expectations of $857.88 million. Regal Beloit Corp. had a return on equity of 10.35% and a net margin of 4.30%. The firm’s quarterly revenue was down 11.0% compared to the same quarter last year. During the same period in the prior year, the company earned $1.53 EPS. On average, equities analysts expect that Regal Beloit Corp. will post $4.39 earnings per share for the current year.
The business also recently announced a quarterly dividend, which will be paid on Friday, October 14th. Stockholders of record on Friday, September 30th will be paid a $0.24 dividend. The ex-dividend date of this dividend is Wednesday, September 28th. This represents a $0.96 dividend on an annualized basis and a dividend yield of 1.65%. Regal Beloit Corp.’s dividend payout ratio is currently 30.28%.
In other news, VP Terry R. Colvin sold 1,615 shares of the stock in a transaction on Thursday, August 11th. The stock was sold at an average price of $62.47, for a total value of $100,889.05. Following the sale, the vice president now directly owns 21,146 shares of the company’s stock, valued at $1,320,990.62. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 2.00% of the stock is owned by insiders.
Several large investors have recently added to or reduced their stakes in the company. Hsbc Holdings PLC boosted its stake in Regal Beloit Corp. by 0.7% in the second quarter. Hsbc Holdings PLC now owns 10,304 shares of the company’s stock valued at $568,000 after buying an additional 71 shares during the period. State Treasurer State of Michigan boosted its stake in Regal Beloit Corp. by 0.6% in the second quarter. State Treasurer State of Michigan now owns 17,900 shares of the company’s stock valued at $985,000 after buying an additional 100 shares during the period. Utah Retirement Systems boosted its stake in Regal Beloit Corp. by 1.3% in the second quarter. Utah Retirement Systems now owns 8,095 shares of the company’s stock valued at $446,000 after buying an additional 100 shares during the period. Genesee Valley Trust Co. boosted its stake in Regal Beloit Corp. by 3.0% in the second quarter. Genesee Valley Trust Co. now owns 3,733 shares of the company’s stock valued at $206,000 after buying an additional 107 shares during the period. Finally, PNC Financial Services Group Inc. boosted its stake in Regal Beloit Corp. by 1.3% in the second quarter. PNC Financial Services Group Inc. now owns 8,538 shares of the company’s stock valued at $471,000 after buying an additional 113 shares during the period. 95.95% of the stock is currently owned by hedge funds and other institutional investors.
Regal Beloit Corp. Company Profile
Regal Beloit Corporation is a manufacturer of electric motors and controls, electric generators and controls, and power transmission products. The Company operates through three segments: Commercial and Industrial Systems, Climate Solutions and Power Transmission Solutions. Its Commercial and Industrial Systems segment produces medium and large motors, commercial and industrial equipment, generator and custom drives and systems serving commercial heating, ventilation and air conditioning (HVAC), and power and oil and gas systems.
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