Reliance (NYSE:RS) Reaches New 1-Year High Following Analyst Upgrade

by · The Markets Daily

Reliance, Inc. (NYSE:RS – Get Free Report)’s stock price reached a new 52-week high during mid-day trading on Wednesday after JPMorgan Chase & Co. raised their price target on the stock from $400.00 to $420.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. Reliance traded as high as $435.81 and last traded at $435.9960, with a volume of 111,970 shares trading hands. The stock had previously closed at $432.79.

A number of other analysts have also weighed in on the stock. BMO Capital Markets increased their target price on shares of Reliance from $390.00 to $415.00 and gave the stock a “market perform” rating in a report on Monday, July 27th. Wells Fargo & Company lifted their price target on shares of Reliance from $391.00 to $420.00 and gave the company an “equal weight” rating in a report on Thursday, October 22nd. Wall Street Zen downgraded shares of Reliance from a “strong-buy” rating to a “buy” rating in a research report on Sunday, October 11th. Weiss Ratings upgraded Reliance from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. Finally, Zacks Research upgraded Reliance from a “hold” rating to a “strong-buy” rating in a report on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Reliance currently has an average rating of “Hold” and an average price target of $400.29.

Get Our Latest Stock Analysis on RS

Insider Activity

In related news, COO Stephen Koch sold 8,334 shares of the stock in a transaction on Tuesday, October 27th. The stock was sold at an average price of $430.87, for a total transaction of $3,590,870.58. Following the sale, the chief operating officer directly owned 8,209 shares of the company’s stock, valued at $3,537,011.83. This trade represents a 50.38% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.40% of the stock is currently owned by insiders.

Key Reliance News

Here are the key news stories impacting Reliance this week:

  • Positive Sentiment: Quarterly earnings beat expectations: Reliance’s third-quarter earnings surged 120.3% year over year, supported by higher steel prices, record shipments and contributions from border-wall projects. The strong sales and profit growth reinforces the company’s favorable earnings momentum. Reliance third-quarter earnings report
  • Positive Sentiment: Analyst sees additional upside: A JPMorgan analyst reportedly expects Reliance stock to rise, providing a supportive signal for investor sentiment. However, the broader analyst consensus remains cautious, with several firms maintaining neutral or equal-weight ratings. JPMorgan Reliance stock outlook
  • Neutral Sentiment: Strong fundamentals are already reflected in the valuation: Reliance recently reported quarterly EPS of $8.02 versus a $6.83 consensus estimate, while revenue rose 42.8% year over year to $5.21 billion. The results are favorable, but the stock is trading near its 52-week high, increasing the risk of profit-taking and limiting the impact of additional good news.
  • Negative Sentiment: COO sells a substantial stake: COO Stephen Koch sold 8,334 shares for approximately $3.59 million, reducing his ownership by about 50%. The sale may weigh on sentiment because it occurred near recent highs, although insider transactions can be routine and do not necessarily indicate deteriorating business conditions. Reliance COO insider sale
  • Neutral Sentiment: Indian Reliance headlines are unrelated: Reports about Reliance Industries, Jio Platforms, and Reliance Retail—including strong consolidated profit growth and Jio’s listing—concern the separate Indian conglomerate, not Reliance, Inc. (NYSE: RS). They should not be treated as direct catalysts for RS.

Institutional Investors Weigh In On Reliance

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. PensionDanmark Pensionsforsikringsaktieselskab boosted its stake in Reliance by 542.5% during the second quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 9,766 shares of the industrial products company’s stock worth $3,649,000 after buying an additional 8,246 shares during the period. Cornerstone Capital Inc. bought a new stake in shares of Reliance in the 2nd quarter worth about $23,725,000. The Manufacturers Life Insurance Company bought a new position in Reliance during the 2nd quarter valued at about $8,808,000. Bank of America Corp DE grew its holdings in Reliance by 4.9% during the 1st quarter. Bank of America Corp DE now owns 263,191 shares of the industrial products company’s stock valued at $79,989,000 after purchasing an additional 12,282 shares during the last quarter. Finally, NewEdge Advisors LLC raised its position in Reliance by 189.2% in the 2nd quarter. NewEdge Advisors LLC now owns 6,423 shares of the industrial products company’s stock worth $2,399,000 after purchasing an additional 4,202 shares during the period. Hedge funds and other institutional investors own 79.26% of the company’s stock.

Reliance Trading Down 0.6%

The company has a quick ratio of 2.22, a current ratio of 4.12 and a debt-to-equity ratio of 0.21. The firm has a market cap of $22.33 billion, a P/E ratio of 20.39, a P/E/G ratio of 0.94 and a beta of 0.95. The company’s 50 day simple moving average is $399.24 and its 200-day simple moving average is $367.58.

Reliance (NYSE:RS – Get Free Report) last released its earnings results on Wednesday, October 21st. The industrial products company reported $8.02 EPS for the quarter, beating analysts’ consensus estimates of $6.83 by $1.19. Reliance had a return on equity of 15.31% and a net margin of 6.38%. The firm had revenue of $5.21 billion for the quarter, compared to analysts’ expectations of $4.74 billion. During the same quarter in the prior year, the firm posted $3.64 earnings per share. The company’s quarterly revenue was up 42.8% on a year-over-year basis. As a group, research analysts predict that Reliance, Inc. will post 24.48 earnings per share for the current fiscal year.

Reliance Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, December 4th. Stockholders of record on Friday, November 20th will be given a dividend of $1.25 per share. The ex-dividend date of this dividend is Friday, November 20th. This represents a $5.00 dividend on an annualized basis and a dividend yield of 1.1%. Reliance’s dividend payout ratio is presently 23.31%.

About Reliance

(Get Free Report)

Reliance, Inc (NYSE: RS) is a diversified metals service center company that supplies processed metal products and related services to industrial manufacturers, fabricators, and other commercial customers. Its product offerings include carbon steel, stainless steel, aluminum, copper, brass, and other specialty metals.

The company provides value-added processing services such as cutting, slitting, leveling, blanking, machining, forming, and precision sawing. These services allow customers to purchase metals in customized sizes and specifications, helping reduce their need for in-house processing and inventory management.

Founded in 1939, Reliance serves a broad range of industries, including nonresidential construction, transportation, aerospace and defense, energy, electronics, machinery, and general manufacturing.

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