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RRX
LONGINSIDER SELLREGAL REXNORD CORPORATION
Funds
3
Score
4.50
vs SPY
-8.6%
Stock return (since Q-end)
+7.7%
SPY return (since Q-end)
+16.3%
Current price
$201.76
News Summary
PositiveRegal Rexnord delivered a strong Q1 2026 earnings beat with revenue growth, raised full-year sales guidance, and significant momentum in high-growth segments (AMC +15.3%, data center $735M backlog, $30M+ humanoid robotics revenue). New CEO Aamir Paul (ex-Schneider Electric, $17B NA business) begins by July 2026, bringing data center and automation expertise well-aligned with company strategy. However, material headwinds include a ~$155M annualized tariff impact, weakened free cash flow (-$2.5M vs. +$85.5M YoY), and post-earnings analyst EPS forecast downgrades despite revenue upgrades.
Red flags
- •Free cash flow collapsed to -$2.5M in Q1 2026 vs. +$85.5M prior year; working capital swings and inventory management warrant monitoring
- •Annualized tariff impact of ~$155M identified; mitigation and margin normalization not guaranteed until year-end
- •Analyst EPS forecasts downgraded post-earnings despite revenue beat, signaling margin/mix concerns below headline growth
- •High debt load at $4.7B; refinancing dependency evident in Q1 debt restructuring activity
Funds Buying (3)
| Fund | Manager | Shares Held | ∆ Shares | Position Value | QoQ | Status |
|---|---|---|---|---|---|---|
| Viking Global | Andreas Halvorsen | 3.1M | +3.1M | $588.5B | — | NEW |
| Point72 | Steve Cohen | 686K | +686K | $128.4B | — | NEW |
| Maverick Capital | Lee Ainslie | 7K | +7K | $1.4B | — | NEW |
Shares Held and Position Value reflect total quarter-end holdings. ∆ Shares is the change from the prior quarter.
Insider Activity
| Name | Title | Type | Shares | Price | Value | Filed |
|---|---|---|---|---|---|---|
| Rehard Robert | EVP and CFO* | SELL | 6K | $200.00 | $1.30M | 2026-05-22 |
| Morton Jerrald R | EVP and Pres. IPS* | SELL | 9K | $209.13 | $1.96M | 2026-05-14 |
| Pinkham Louis V. | Chief Executive Officer | SELL | 6K | $209.88 | $1.30M | 2026-05-11 |
| Pinkham Louis V. | Chief Executive Officer | SELL | 6K | $210.90 | $1.17M | 2026-05-11 |
| Pinkham Louis V. | Chief Executive Officer | SELL | 6K | $212.01 | $1.18M | 2026-05-11 |
| Pinkham Louis V. | Chief Executive Officer | SELL | 2K | $212.89 | $0.35M | 2026-05-11 |
| Pinkham Louis V. | Chief Executive Officer | SELL | 1K | $213.98 | $0.30M | 2026-05-11 |
| Pinkham Louis V. | Chief Executive Officer | SELL | 2K | $215.43 | $0.41M | 2026-05-11 |
| Pinkham Louis V. | Chief Executive Officer | SELL | 299 | $216.24 | $0.06M | 2026-05-11 |
| Walker-Lee Robin A | — | SELL | 1K | $213.85 | $0.28M | 2026-05-11 |