Form 4: Regal Rexnord Executive Sells Shares for Tax

Regal Rexnord's EVP, General Counsel & Secretary, Hugo Dubovoy Jr., disposed of 98 shares of common stock to cover tax liabilities, while also holding Stock Appreciation Rights.

Summary

• Hugo Dubovoy Jr., Executive Vice President, General Counsel & Secretary of Regal Rexnord Corp (RRX), reported an insider transaction.
• On April 1, 2026, Mr. Dubovoy disposed of 98 shares of common stock at a price of $191.38 per share.
• This disposition was made to satisfy tax withholding obligations, indicated by transaction code 'F'.
• Following this transaction, Mr. Dubovoy directly beneficially owns 8,852.191 shares of common stock.
• Mr. Dubovoy also beneficially owns 2,653 Stock Appreciation Rights (SARs) with an exercise price of $176.01.
• These SARs were granted on April 1, 2025, and vest over three years: 34% on the first anniversary, 67% on the second, and 100% on the third anniversary of the grant date.
• The Stock Appreciation Rights are set to expire on April 1, 2034.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event, as the disposition of shares was for tax withholding purposes, a common and non-discretionary transaction for executives. The continued beneficial ownership of common stock and SARs maintains executive alignment.

Positives

• Continued beneficial ownership of 8,852.191 shares of common stock by a key executive, demonstrating ongoing alignment with shareholder interests.
• Beneficial ownership of 2,653 Stock Appreciation Rights (SARs) further aligns executive interests with shareholder value creation, as SARs gain value when the stock price increases above the exercise price of $176.01.

Negatives

• A reduction in direct common stock ownership by 98 shares, even if for tax purposes, slightly decreases the executive's direct equity stake.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that routine insider transactions, such as dispositions for tax withholding, are common across all industries for executives receiving equity compensation. This specific filing does not provide broader industry-specific insights.

Stakeholder Impact

• Shareholders: Minimal direct impact as the transaction is routine for tax purposes and does not signal a change in management's confidence or strategic direction.
• Employees: No direct impact mentioned.
• Customers/Suppliers/Creditors: No direct impact mentioned.

Next Steps

• The Stock Appreciation Rights will continue to vest according to their schedule: 34% on the first anniversary, 67% on the second anniversary, and 100% on the third anniversary of the April 1, 2025 grant date.

Key Dates

Recommendation

This Form 4 reports a routine, non-discretionary disposition of shares for tax withholding purposes, which is a common occurrence for executives receiving equity compensation. It does not indicate a change in the executive's confidence in the company or a strategic shift. The executive continues to hold a significant number of shares and SARs, maintaining alignment with shareholder interests. Therefore, a 'hold' recommendation is appropriate as this event is neutral in its implications for the stock's fundamental value.

Keywords

Regal Rexnord, RRX, Insider Transaction, Form 4, Stock Sale, Tax Withholding, Stock Appreciation Rights, Executive Compensation