Regal Rexnord (NYSE:ZWS) Corporation (NYSE:RRX), a player in the industrial machinery sector, has amended its supplemental retirement plan, allowing eligible employees to defer restricted stock units and performance unit awards. This change, effective April 22, 2024, was approved on Thursday, October 24, 2024, by the Compensation and Human Resources Committee of the company's Board of Directors.
The update to the supplemental retirement plan, officially known as the Amended and Restated Supplemental Retirement Plan (SRP), does not provide for company matching contributions for the deferrals of stock units. The amendment signifies an enhancement to the company's existing employee benefit offerings, specifically for its executive compensation package.
Regal Rexnord, formerly known as Regal Beloit (NYSE:RRX) Corporation, has its headquarters in Milwaukee, Wisconsin, and operates within the General Industrial Machinery & Equipment sector, under the Standard Industrial Classification code 3569. The company's business address and telephone number remain unchanged at 111 West Michigan Street, Milwaukee, Wisconsin, with the phone number (608) 364-8800.
Regal Rexnord's commitment to updating its executive compensation structures reflects ongoing adjustments to corporate governance and human resource strategies. These changes are part of the company's broader efforts to align its compensation practices with the interests of its employees and the performance of the company.
Investors and stakeholders can access the complete filing, including the Amended and Restated SRP, through the SEC's database, acknowledging the company's transparency in its corporate governance practices. This move is part of Regal Rexnord's ongoing efforts to maintain robust and competitive compensation packages for its employees. The company's stock is listed and actively traded on the New York Stock Exchange.
In other recent news, Regal Rexnord has been the subject of several analyst notes. Citi initiated coverage on the company with a Buy rating, citing growth potential in its secular end-markets and acquisition synergies. The firm set a price target of $200, based on a projected price-to-earnings multiple of approximately 17.5 times the estimated earnings per share for the year 2025.
Loop Capital maintained its Buy rating on Regal Rexnord, with a steady price target of $200, following a recent analyst event that highlighted the company's potential growth and strategic initiatives. KeyBanc reaffirmed its Overweight rating and a price target of $190, following the company's 2024 investor day where significant structural advancements were showcased.
Goldman Sachs also reaffirmed its Buy rating on shares of Regal Rexnord, with a steady price target of $195, emphasizing an increase in organic growth and significant improvements in financial metrics. Baird reaffirmed its Outperform rating on Regal Rexnord, maintaining a price target of $213, noting the company's improved portfolio, better growth, and margin profile compared to its historical performance.
These recent developments underscore a promising outlook for Regal Rexnord, as indicated by analysts. The company's strategic actions, including both organic and inorganic growth strategies, are setting the stage for robust long-term earnings growth.
InvestingPro Insights
Regal Rexnord's recent amendment to its supplemental retirement plan aligns with several key financial indicators and trends highlighted by InvestingPro. The company's focus on enhancing employee benefits, particularly for executives, comes at a time when its financial performance shows mixed signals.
According to InvestingPro data, Regal Rexnord has a market capitalization of $11.19 billion USD, reflecting its significant presence in the industrial machinery sector. The company's revenue for the last twelve months as of Q2 2024 stood at $6.35 billion USD, with a notable revenue growth of 14.21% over the same period. This growth suggests that the company is in a position to invest in its employee retention strategies, such as the amended retirement plan.
InvestingPro Tips highlight that Regal Rexnord has maintained dividend payments for an impressive 52 consecutive years, demonstrating a long-term commitment to shareholder returns. This consistency in dividend payments, coupled with the recent amendment to the retirement plan, indicates the company's balanced approach to both shareholder and employee interests.
Another relevant InvestingPro Tip points out that analysts predict the company will be profitable this year, which could provide the financial flexibility to support enhanced employee benefits without compromising financial stability. This positive outlook is further supported by the strong return over the last three months, as noted in another tip.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide a deeper understanding of Regal Rexnord's financial position and future prospects.
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