Form 4: Regal Rexnord Executive Increases Stake Through Dividend Reinvestment

Regal Rexnord Corp's SVP, Corporate Controller and CAO, Alexander P. Scarpelli, acquired additional restricted stock units via dividend reinvestment, increasing his beneficial ownership.

Summary

• Alexander P. Scarpelli, SVP, Corporate Controller and CAO of Regal Rexnord Corp (RRX), acquired 3.483 shares of common stock on July 14, 2025.
• The acquisition was made at a price of $146.33 per share.
• These shares represent additional restricted stock units (RSUs) credited to Scarpelli under the dividend equivalent reinvestment provision of his existing RSU awards, resulting from a quarterly dividend payment.
• Following this transaction, Scarpelli beneficially owns 3,286.532 shares of common stock.
• Scarpelli also holds Stock Appreciation Rights (SARs): 1,193 SARs with an exercise price of $168.47 (exercisable from February 23, 2025, expiring February 23, 2034) and 1,015 SARs with an exercise price of $154.20 (exercisable from February 23, 2024, expiring February 23, 2033).
• The SARs vest 34% on the first anniversary, 67% on the second, and 100% on the third anniversary of their grant date.

Sentiment

Score: 7

Explanation: The acquisition of additional shares by a key executive, even through dividend reinvestment, generally indicates continued alignment of interests and confidence in the company's long-term prospects. While not a direct open-market purchase, it still increases insider ownership.

Positives

• An insider, the SVP, Corporate Controller and CAO, increased their beneficial ownership in the company, which can signal confidence in the company's future performance.
• The acquisition of additional restricted stock units through dividend reinvestment indicates a mechanism for insiders to accumulate more equity over time, aligning their interests with shareholders.

Future Outlook

NA

Management Comments

• Represents additional restricted stock units credited to the reporting person under the dividend equivalent reinvestment provision of the reporting person's outstanding restricted stock unit awards as a result of a quarterly dividend payment.
• The additional restricted stock units resulting from the dividend equivalent reinvestment are subject to the same terms and conditions, including vesting, as the outstanding restricted stock unit awards to which they are attributable.
• The Stock Appreciation Rights vest and become exercisable 34% on the first anniversary, 67% on the second anniversary and 100% on the third anniversary of the date of the grant.

Industry Context

This Form 4 filing reports an individual insider transaction and does not provide information relevant to broader industry trends or competitive landscape analysis.

Stakeholder Impact

• Shareholders may view the increase in insider ownership, even through dividend reinvestment, as a positive signal of management's continued commitment and confidence in the company's value.

Key Dates

Recommendation

Keywords

Regal Rexnord Corp, RRX, SEC Form 4, insider transaction, restricted stock units, RSU, dividend reinvestment, stock appreciation rights, SARs, corporate controller, beneficial ownership