Form 4: Regal Rexnord EVP Morton Exercises SARs, Sells Shares

Regal Rexnord's EVP and President of Industrial Powertrain Solutions, Jerrald R. Morton, exercised Stock Appreciation Rights and subsequently sold a portion of the resulting common stock.

Summary

• Jerrald R. Morton, EVP and President of Industrial Powertrain Solutions at Regal Rexnord Corp (RRX), executed multiple transactions on February 9, 2026.
• Morton exercised Stock Appreciation Rights (SARs) for a total of 26,193 shares of common stock, with exercise prices ranging from $74.04 to $151.27 per share.
• Concurrently, Morton disposed of 26,193 shares of common stock.
• Of the disposed shares, 18,215 shares were withheld for tax liabilities or exercise price payment at a price of $216.59 per share.
• An additional 7,978 shares were sold in the open market at weighted average prices of $215.77 and $216.37 per share.
• Following these transactions, Morton directly beneficially owns 24,029.762 shares of Regal Rexnord common stock.
• Morton still holds 10,475 unexercised Stock Appreciation Rights with exercise prices of $154.20 and $168.47, expiring in 2033 and 2034, respectively.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a routine insider transaction where an executive monetizes vested equity compensation. The net reduction in direct ownership due to open market sales beyond tax obligations slightly dampens the sentiment, though it's a common practice.

Positives

• The exercise of Stock Appreciation Rights indicates the executive is realizing value from previously granted equity compensation, which can be seen as a positive for executive retention and motivation.
• The exercise prices of the SARs (ranging from $74.04 to $151.27) are significantly lower than the sale prices (around $215-$216), indicating substantial appreciation in the company's stock value over time.

Negatives

• The executive sold 7,978 shares in the open market beyond those withheld for tax purposes, resulting in a net reduction of direct common stock ownership. This could be interpreted as a reduction in direct insider exposure to the company's stock.

Industry Context

StockSavvy.ai notes that insider transactions, such as the exercise of equity awards and subsequent sales, are common events in publicly traded companies. While the sale of shares can sometimes be viewed negatively, it often represents an executive diversifying their portfolio or covering tax obligations associated with compensation, rather than a statement on the company's future prospects. The significant spread between SAR exercise prices and sale prices reflects a healthy appreciation in Regal Rexnord's stock value over the vesting periods.

Stakeholder Impact

• Shareholders: The sale of shares by an executive could be perceived negatively by some shareholders, potentially signaling a lack of confidence, although it's often for personal financial planning. The realization of significant gains from SARs indicates past stock performance benefited shareholders.

Key Dates

Recommendation

The filing details a routine insider transaction involving the exercise of Stock Appreciation Rights and subsequent sale of shares for tax purposes and personal diversification. While there's a net reduction in direct ownership, it's not indicative of a fundamental change in the company's prospects. Investors should hold and monitor future company performance and broader market trends rather than reacting solely to this standard insider filing.

Keywords

Regal Rexnord, RRX, SEC Form 4, Insider Trading, Stock Appreciation Rights, SARs, Executive Compensation, Stock Sale, Jerrald R. Morton, Common Stock