RBC Bearings (ROLL) Cut to Hold at Zacks Investment Research

RBC Bearings (NASDAQ:ROLL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Tuesday.

According to Zacks, “Over the last six months, RBC Bearings’ shares outperformed the industry. The company perceives that sturdier industrial original equipment manufacturers’ demand as well as increased industrial distribution and aftermarket sales will continue to drive results in the quarters ahead. However, the stock looks overvalued compared to the same for last three-month period. Weaker-than-expected aerospace and defense business sales had weighed over revenues in the reported quarter. Moreover, the company’s operating income had dipped in the reported quarter on account of increasing operating expenses. We believe escalating operating expenses, if unchecked, will continue to dent the company’s profitability in the quarters ahead. Over the last 60 days, Zacks Consensus Estimate for the stock has remained unchanged for both fiscal 2018 and 2019.”

ROLL has been the subject of several other research reports. BidaskClub cut RBC Bearings from a “buy” rating to a “hold” rating in a research note on Tuesday, December 12th. Drexel Hamilton assumed coverage on RBC Bearings in a research note on Thursday, December 21st. They set a “buy” rating and a $140.00 target price for the company. ValuEngine cut RBC Bearings from a “buy” rating to a “hold” rating in a research note on Friday, December 1st. Bank of America raised their target price on RBC Bearings from $120.00 to $140.00 and gave the company a “buy” rating in a research note on Wednesday, November 8th. Finally, CL King assumed coverage on RBC Bearings in a research note on Wednesday, November 29th. They set a “buy” rating and a $142.00 target price for the company. Three analysts have rated the stock with a hold rating and three have issued a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and a consensus price target of $140.75.

Shares of RBC Bearings (ROLL) traded up $3.63 on Tuesday, reaching $129.74. The company had a trading volume of 79,047 shares, compared to its average volume of 69,956. The company has a market cap of $3,030.00, a P/E ratio of 43.98, a P/E/G ratio of 5.90 and a beta of 1.35. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.64 and a current ratio of 4.68. RBC Bearings has a 52-week low of $87.61 and a 52-week high of $139.95.

RBC Bearings (NASDAQ:ROLL) last released its quarterly earnings results on Friday, November 3rd. The industrial products company reported $0.83 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.85 by ($0.02). RBC Bearings had a return on equity of 11.10% and a net margin of 11.18%. The business had revenue of $164.30 million during the quarter, compared to the consensus estimate of $164.56 million. During the same period in the previous year, the company posted $0.78 EPS. The company’s revenue for the quarter was up 6.8% compared to the same quarter last year. equities analysts predict that RBC Bearings will post 3.63 EPS for the current year.

In other news, VP Thomas C. Crainer sold 15,000 shares of the firm’s stock in a transaction dated Wednesday, November 15th. The stock was sold at an average price of $120.76, for a total transaction of $1,811,400.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Richard J. Edwards sold 10,000 shares of the firm’s stock in a transaction dated Thursday, November 9th. The stock was sold at an average price of $121.54, for a total value of $1,215,400.00. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 37,487 shares of company stock valued at $4,632,657. 3.70% of the stock is currently owned by company insiders.

Several institutional investors and hedge funds have recently bought and sold shares of the company. Confluence Investment Management LLC raised its stake in shares of RBC Bearings by 3.3% during the 4th quarter. Confluence Investment Management LLC now owns 24,531 shares of the industrial products company’s stock worth $3,101,000 after purchasing an additional 774 shares in the last quarter. Public Employees Retirement System of Ohio increased its holdings in shares of RBC Bearings by 23.1% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 25,231 shares of the industrial products company’s stock valued at $3,158,000 after acquiring an additional 4,737 shares during the last quarter. California Public Employees Retirement System increased its holdings in shares of RBC Bearings by 3.2% during the 3rd quarter. California Public Employees Retirement System now owns 55,207 shares of the industrial products company’s stock valued at $6,909,000 after acquiring an additional 1,707 shares during the last quarter. Janney Montgomery Scott LLC increased its holdings in shares of RBC Bearings by 3.0% during the 3rd quarter. Janney Montgomery Scott LLC now owns 25,193 shares of the industrial products company’s stock valued at $3,153,000 after acquiring an additional 738 shares during the last quarter. Finally, Oppenheimer Asset Management Inc. increased its holdings in shares of RBC Bearings by 6.6% during the 3rd quarter. Oppenheimer Asset Management Inc. now owns 10,082 shares of the industrial products company’s stock valued at $1,262,000 after acquiring an additional 622 shares during the last quarter. 97.89% of the stock is owned by institutional investors.

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About RBC Bearings

RBC Bearings Incorporated is an international manufacturer and marketer of engineered precision bearings and products, which are integral to the manufacture and operation of machines, aircraft and mechanical systems. The Company operates through four segments: Plain Bearings; Roller Bearings; Ball Bearings, and Engineered Products.

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