Zacks Investment Research downgraded shares of Rexnord (NYSE:RXN) from a buy rating to a hold rating in a research report released on Tuesday.
According to Zacks, “In the past month, Rexnord's shares have outperformed the industry. For fiscal 2019, the company expects to gain from solid product portfolio, strengthening demand in end markets, supply-chain optimization and footprint-repositioning programs as well as inorganic activities. The Centa Power buyout is expected to boost the company's Process and Motion Control segment while proceeds of the divestment of VAG operations can be used for debt reduction. Core sales growth is predicted to be in a mid-single-digit range (the upper half). However, rising costs and expenses remain concerns. The stock looks relatively more leveraged than the industry. Also, Rexnord's lower cash ratio indicates its inability to pay off its short-term liabilities while a falling ratio seems to be worsening the situation.”
Several other equities research analysts have also recently issued reports on RXN. Barclays restated a hold rating and set a $30.00 price objective on shares of Rexnord in a research report on Friday, February 1st. Credit Suisse Group reiterated a neutral rating and set a $31.00 price target on shares of Rexnord in a research report on Friday, November 23rd. Oppenheimer set a $35.00 price target on shares of Rexnord and gave the company a buy rating in a research report on Sunday, January 27th. ValuEngine upgraded shares of Rexnord from a hold rating to a buy rating in a research report on Friday, November 16th. Finally, TheStreet upgraded shares of Rexnord from a c+ rating to a b- rating in a research report on Monday, December 3rd. Five investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. The company has an average rating of Buy and a consensus target price of $30.75.
Rexnord stock traded down $0.11 during midday trading on Tuesday, hitting $26.31. 1,772 shares of the stock were exchanged, compared to its average volume of 652,957. Rexnord has a fifty-two week low of $21.38 and a fifty-two week high of $32.11. The stock has a market cap of $2.78 billion, a P/E ratio of 18.95, a PEG ratio of 0.85 and a beta of 1.59. The company has a current ratio of 2.87, a quick ratio of 1.86 and a debt-to-equity ratio of 1.11.
Rexnord (NYSE:RXN) last released its quarterly earnings data on Wednesday, January 30th. The industrial products company reported $0.47 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.40 by $0.07. Rexnord had a negative net margin of 3.58% and a positive return on equity of 18.32%. The firm had revenue of $485.00 million during the quarter, compared to analysts’ expectations of $487.19 million. During the same period last year, the business earned $0.37 earnings per share. Rexnord’s revenue was up 11.1% compared to the same quarter last year. As a group, analysts forecast that Rexnord will post 1.82 EPS for the current year.
In other Rexnord news, Director David C. Longren acquired 3,500 shares of the stock in a transaction dated Friday, February 1st. The stock was acquired at an average price of $26.50 per share, with a total value of $92,750.00. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Craig Wehr sold 14,964 shares of the firm’s stock in a transaction that occurred on Friday, November 30th. The shares were sold at an average price of $28.00, for a total transaction of $418,992.00. Following the completion of the transaction, the insider now directly owns 22,518 shares of the company’s stock, valued at approximately $630,504. The disclosure for this sale can be found here. Company insiders own 4.50% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of RXN. FMR LLC boosted its stake in shares of Rexnord by 21.2% in the second quarter. FMR LLC now owns 6,238,342 shares of the industrial products company’s stock valued at $181,286,000 after purchasing an additional 1,089,253 shares during the period. Raymond James & Associates lifted its stake in Rexnord by 7.8% in the second quarter. Raymond James & Associates now owns 28,305 shares of the industrial products company’s stock worth $823,000 after acquiring an additional 2,043 shares during the last quarter. California Public Employees Retirement System lifted its stake in Rexnord by 17.3% in the second quarter. California Public Employees Retirement System now owns 264,873 shares of the industrial products company’s stock worth $7,697,000 after acquiring an additional 38,990 shares during the last quarter. Jane Street Group LLC purchased a new position in Rexnord in the second quarter worth approximately $314,000. Finally, Bank of New York Mellon Corp lifted its stake in Rexnord by 10.3% in the second 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.
Rexnord Company Profile
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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