Form 4: Regal Rexnord CEO Executes Planned Stock Transactions

Sentiment:

Insider Transaction Report 11 February 2026 4:41 PM

Regal Rexnord CEO Louis V. Pinkham executed a series of planned transactions, exercising Stock Appreciation Rights and selling shares.

Summary

Louis V. Pinkham, CEO of Regal Rexnord Corp. (RRX), engaged in a series of pre-planned transactions on February 9, 2026, under a Rule 10b5-1 plan.
Pinkham exercised Stock Appreciation Rights (SARs) to acquire a total of 96,125 shares of common stock.
The SARs were exercised at various prices: 33,374 shares at $133.77, 32,723 shares at $151.27, 20,318 shares at $154.20, and 9,710 shares at $168.47.
Concurrently, 79,397 shares were disposed of at $216.59 for tax withholding purposes.
An additional 36,728 shares were sold in the open market at weighted average prices ranging from $210.63 to $218.45.
Following these transactions, Pinkham's direct beneficial ownership of common stock stands at 83,337.464 shares.
Remaining derivative holdings include 10,009 SARs at an exercise price of $154.20 and 18,850 SARs at $168.47.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a largely neutral event. While there's a reduction in direct ownership through sales, the underlying exercise of SARs indicates the executive is monetizing vested compensation, and the 10b5-1 plan suggests a pre-planned, non-event-driven transaction.

Positives

The exercise of Stock Appreciation Rights indicates the monetization of previously granted equity compensation, reflecting value creation from past performance.
The transactions were conducted under a Rule 10b5-1 plan, suggesting a pre-determined strategy rather than a reaction to immediate market conditions.

Negatives

A significant number of shares (79,397 for tax withholding and 36,728 through open market sales) were disposed of, reducing the CEO's direct equity stake.

Future Outlook

Industry Context

StockSavvy.ai notes that insider transactions, particularly those executed under a Rule 10b5-1 plan, are common for executives managing their equity compensation and personal financial planning. While sales reduce direct ownership, the pre-planned nature often mitigates concerns about immediate market sentiment.

Comparison to Industry Standards

The exercise of Stock Appreciation Rights (SARs) is a standard form of executive compensation, similar to stock options, used across various industries to align executive incentives with shareholder value.
The use of a Rule 10b5-1 plan for these transactions is a widely adopted practice among public company executives, including those at peers like Danaher Corporation or Illinois Tool Works, to provide an affirmative defense against insider trading allegations by pre-scheduling trades.
The disposition of shares for tax withholding (F-code transaction) is a routine event when equity awards vest or are exercised, common in companies like Honeywell International or Eaton Corporation, reflecting the tax obligations on compensation.
Open market sales by executives, even under 10b5-1 plans, are a normal part of portfolio diversification and liquidity management, observed in executives across the industrial sector.

Stakeholder Impact

Shareholders: The transactions provide transparency into executive compensation monetization and personal financial planning. The net reduction in direct ownership might be viewed neutrally given the 10b5-1 plan.
Employees: No direct impact.
Customers: No direct impact.
Suppliers: No direct impact.
Creditors: No direct impact.

Key Dates

Date	Description
02/23/2022	Date SARs with $133.77 exercise price became exercisable (first anniversary of grant).
02/23/2023	Date SARs with $151.27 exercise price became exercisable (first anniversary of grant).
02/23/2024	Date SARs with $154.20 exercise price became exercisable (first anniversary of grant).
02/23/2025	Date SARs with $168.47 exercise price became exercisable (first anniversary of grant).
02/09/2026	Date of reported stock transactions (SAR exercises, tax withholdings, and open market sales).
02/11/2026	Date the Form 4 filing was signed and submitted.
02/23/2031	Expiration date for SARs with $133.77 exercise price.
02/23/2032	Expiration date for SARs with $151.27 exercise price.
02/23/2033	Expiration date for SARs with $154.20 exercise price.
02/23/2034	Expiration date for SARs with $168.47 exercise price.

Recommendation

hold

The filing details routine insider transactions by the CEO, involving the exercise of Stock Appreciation Rights and subsequent sales for tax obligations and personal diversification, all under a pre-arranged 10b5-1 plan. These actions are typical for executives and do not signal a change in the company's fundamental outlook or performance. Therefore, a 'hold' recommendation is appropriate as this filing provides no new information to alter an existing investment thesis.

Keywords

Regal Rexnord, RRX, Insider Trading, Form 4, Louis V. Pinkham, CEO, Stock Appreciation Rights, SARs, Equity Compensation, Stock Sales, 10b5-1 Plan

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