Regal Rexnord slides as investors focus on cash flow, margins, and unchanged outlook after Q1 report

Regal Rexnord Corporation (RRX) is down 10.5% today. Here is some analysis on what might have caused this price movement.

Analysis: The move appears tied to an earnings-related “good news not good enough” reaction: while the company posted solid sales growth and strong order momentum, profitability metrics softened and free cash flow turned slightly negative. Investors may also be recalibrating expectations after management reaffirmed (rather than raised) full-year adjusted EPS guidance and highlighted ongoing headwinds such as mix, tariffs, and residential HVAC weakness.

Details:

The company reported Q1 sales of $1.479 billion (up 4.3% year over year) and adjusted diluted EPS of $2.17.

Adjusted EBITDA was $304.4 million versus $309.5 million a year ago, suggesting margin pressure despite higher revenue.

Free cash flow was -$2.5 million for the quarter (versus $85.5 million in the prior-year quarter), which can weigh on sentiment for a leveraged industrial name.

Management reaffirmed 2026 adjusted EPS guidance of $10.20 to $11.00 and noted CEO succession, with Aamir Paul named as the next CEO.

Sources:

U.S. SEC (EDGAR), The Associated Press, PR Newswire

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$RRX Insider Trading Activity

$RRX insiders have traded $RRX stock on the open market 21 times in the past 6 months. Of those trades, 0 have been purchases and 21 have been sales.

Here’s a breakdown of recent trading of $RRX stock by insiders over the last 6 months:

LOUIS V. PINKHAM (Chief Executive Officer) has made 0 purchases and 12 sales selling 72,663 shares for an estimated $13,169,321.
ROBERT REHARD (EVP and CFO*) has made 0 purchases and 3 sales selling 9,961 shares for an estimated $2,173,089.
JERRALD R MORTON (EVP and Pres. IPS*) has made 0 purchases and 2 sales selling 7,978 shares for an estimated $1,721,445.
CURTIS W STOELTING has made 0 purchases and 2 sales selling 9,000 shares for an estimated $1,710,000.
CHERYL LEWIS (EVP and Chief HR Officer*) sold 2,262 shares for an estimated $487,981
ALEXANDER P SCARPELLI (SVP, Corp. Controller and CAO*) sold 290 shares for an estimated $64,887

To track insider transactions, check out Quiver Quantitative's insider trading dashboard. You can access data on insider stock transactions through the Quiver Quantitative API.

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$RRX Hedge Fund Activity

We have seen 234 institutional investors add shares of $RRX stock to their portfolio, and 256 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

UBS AM, A DISTINCT BUSINESS UNIT OF UBS ASSET MANAGEMENT AMERICAS LLC removed 3,930,634 shares (-82.8%) from their portfolio in Q4 2025, for an estimated $551,546,562
VICTORY CAPITAL MANAGEMENT INC added 1,690,264 shares (+42.6%) to their portfolio in Q4 2025, for an estimated $237,177,844
CAPITAL WORLD INVESTORS removed 1,225,381 shares (-31.3%) from their portfolio in Q4 2025, for an estimated $171,945,461
BANK OF NEW YORK MELLON CORP added 984,185 shares (+115.5%) to their portfolio in Q1 2026, for an estimated $184,298,483
NORGES BANK removed 902,614 shares (-51.1%) from their portfolio in Q4 2025, for an estimated $126,654,796
BESSEMER GROUP INC added 894,527 shares (+4155.4%) to their portfolio in Q1 2026, for an estimated $167,509,126
FMR LLC removed 846,292 shares (-17.6%) from their portfolio in Q4 2025, for an estimated $118,751,693

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API.

$RRX Price Targets

Multiple analysts have issued price targets for $RRX recently. We have seen 7 analysts offer price targets for $RRX in the last 6 months, with a median target of $230.0.

Here are some recent targets:

Jeffrey Hammond from Keybanc set a target price of $265.0 on 05/07/2026
Kyle Menges from Citigroup set a target price of $240.0 on 04/13/2026
Julian Mitchell from Barclays set a target price of $245.0 on 03/23/2026
Joe Ritchie from Goldman Sachs set a target price of $230.0 on 02/09/2026
Christopher Glynn from Oppenheimer set a target price of $225.0 on 02/06/2026
Tomohiko Sano from JP Morgan set a target price of $230.0 on 02/06/2026
Saree Boroditsky from Jefferies set a target price of $160.0 on 12/10/2025

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.