Corient Private Wealth LLC Sells 1,392 Shares of RBC Bearings Incorporated (NYSE:RBC)

Corient Private Wealth LLC Sells 1,392 Shares of RBC Bearings Incorporated (NYSE:RBC)

  • 24.03.2025 10:07
  • etfdailynews.com
  • Keywords: High Risk

Corient Private Wealth LLC sold 1,392 shares of RBC Bearings, reducing its holdings by 12.6%. Analysts have raised price targets, with a "Moderate Buy" consensus rating. Insiders, including the CEO, have recently sold shares, reflecting ongoing trading activity.

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Context

Analysis of Corient Private Wealth LLC's Share Sale in RBC Bearings (NYSE:RBC)

Key Facts and Data Points

  • Corient Private Wealth LLC reduced its stake in RBC Bearings by 12.6% during the 4th quarter, selling 1,392 shares, ending with 9,688 shares worth $2,898,000.
  • The firm's holdings were valued at $2,898,000 at the end of the most recent quarter.

Competitive Dynamics and Institutional Activity

  • R Squared Ltd: Purchased a new stake worth ~$30,000 in RBC Bearings during Q4.
  • Golden State Wealth Management LLC: Acquired a new stake worth ~$38,000.
  • UMB Bank n.a.: Increased its stake by 84.9%, adding 79 shares valued at $51,000.
  • Harbor Investment Advisory LLC: Purchased a new position worth ~$82,000.
  • Quarry LP: Boosted holdings by 1,003.7%, acquiring 271 additional shares worth $89,000.

Wall Street Analyst Sentiment

  • Morgan Stanley: Raised price target from $360 to $390 and upgraded rating to "overweight."
  • KeyCorp: Increased price target from $375 to $395 and maintained "overweight" rating.
  • William Blair: Reiterated "outperform" rating.
  • Truist Financial: Upgraded price target from $351 to $410 and assigned a "buy" rating.
  • Consensus: Moderate Buy with a target price of $361.20.

Insider Trading Activity

  • Director: Sold 400 shares at an average price of $362.89, reducing ownership by 5.61% to 6,728 shares.
  • CEO Michael J. Hartnett: Sold 2,500 shares at $367.95, decreasing ownership by 0.77% to 320,088 shares.
  • Total insider sales in the last 90 days: 10,900 shares worth $3,963,031.
  • Insider ownership: 2.60% of total outstanding shares.

Stock Performance

  • Opening Price: $329.52 (on March 24th, 2025).
  • Market Cap: $10.35 billion.
  • P/E Ratio: 45.26.
  • PEG Ratio: 4.42.
  • Beta: 1.72.
  • 52-week Range: $241.43 (low) to $372.83 (high).
  • Moving Averages: 50-day MA at $342.69, 200-day MA at $317.81.

Industry and Business Overview

  • RBC Bearings operates in two segments: Aerospace/Defense and Industrial.
  • Products include plain bearings, roller bearings, and ball bearings used in aerospace, automotive, and industrial applications.

Analysis and Market Implications

1. Investment Strategy Shift

  • Corient Private Wealth LLC’s reduction of its stake by 12.6% suggests a potential reassessment of RBC Bearings' growth prospects or portfolio diversification.
  • However, the firm still holds significant shares worth $2.898 million, indicating ongoing confidence in the company.

2. Institutional Buying Trends

  • The activity of multiple institutional investors (e.g., R Squared Ltd, Golden State Wealth Management) indicates renewed interest in RBC Bearings.
  • New investments and stake increases by institutions like UMB Bank n.a. and Harbor Investment Advisory suggest a positive sentiment shift.

3. Analyst Sentiment

  • The "Moderate Buy" consensus rating reflects cautious optimism among analysts, with a target price of $361.20.
  • Upgrades from Morgan Stanley, KeyCorp, and Truist Financial highlight the company's potential for growth in key markets.

4. Insider Trading Insights

  • Insider sales (totaling ~$3.96 million) may signal confidence in the stock’s short-term stability or diversification needs.
  • The relatively low insider ownership (~2.60%) suggests that insiders are not over-reliant on company shares for personal wealth.

5. Stock Performance and Valuation

  • RBC Bearings’ stock is trading above its 50-day moving average ($342.69) but below the 200-day MA ($317.81), indicating moderate investor sentiment.
  • The P/E ratio of 45.26 and PEG ratio of 4.42 suggest high valuations, which could indicate expectations for strong earnings growth.

6. Long-Term Market Implications

  • RBC Bearings’ position in precision bearings and components is strategically important, particularly in aerospace and industrial markets.
  • The company’s ability to maintain margins and innovate will be critical in a competitive landscape.
  • Regulatory changes or shifts in defense/aerospace spending could impact future performance.

7. Competitive Dynamics

  • RBC Bearings faces competition from global players like SKF, Timken, and NSK. Strategic partnerships and cost management will be key to retaining market share.

Conclusion

The sale by Corient Private Wealth LLC and broader institutional activity reflect a nuanced view of RBC Bearings' prospects. While analysts remain cautiously optimistic, the company’s performance in key markets and its ability to innovate will determine long-term success. Investors should monitor insider trading trends, earnings reports, and market sentiment for further insights into RBC Bearings’ trajectory.