Taking a Fresh Look at Rexnord Corporation (RXN)

Rexnord Corporation (NYSE:RXN) is an interesting player in the Industrial Goods space, with a focus on Diversified Machinery. The stock has been active on the tape, currently trading at $21.19, up from yesterday’s close by 1.00%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

It’s important to get a feel for how any stock is actually valued on the market based on its core numbers. Rexnord Corporation (RXN) currently trades with a market capitalization of $2.18B. That value represents a market adjusting for revenues that have been growing by 1.00% on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For RXN, the company currently has $208.50M of cash on the books, which is offset by $1.84B current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $135.02M over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of 0.24 on a per share basis this quarter. Perhaps, that suggests something about why 88.50% of the outstanding share supply is held by institutional investors.

Technical Analysis

It’s important to check the technicals to get a sense of how has been acting. Looking at the stock’s movement on the chart, Rexnord Corporation recorded a 52-week high of 22.97. It is now trading 1.99 off that level. The stock is trading 20.47 its 50-day moving average by -0.51. The stock carved out a 52-week low down at 14.04.

In recent action, Rexnord Corporation (RXN) has made a move of +2.47% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is outperforming the S&P 500 by 24.11, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 102.32M with 5.85% sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of RXN.

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