Reliance (NYSE:RS) Hits New 1-Year High on Analyst Upgrade

Reliance, Inc. (NYSE:RS)’s stock price hit a new 52-week high 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 traded. The stock had previously closed at $432.79.

Several other equities analysts have also recently commented on the company. Wells Fargo & Company upped their price target on Reliance from $391.00 to $420.00 and gave the company an “equal weight” rating in a report on Thursday, October 22nd. Barclays boosted their price target on shares of Reliance from $420.00 to $445.00 and gave the company an “equal weight” rating in a report on Monday. Weiss Ratings upgraded shares of Reliance from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. Wall Street Zen downgraded shares of Reliance from a “strong-buy” rating to a “buy” rating in a report on Sunday, October 11th. Finally, Zacks Research raised shares of Reliance from a “hold” rating to a “strong-buy” rating in a research report on Monday, August 3rd. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Reliance presently has an average rating of “Hold” and a consensus target price of $400.29.

Insider Transactions at Reliance

In other Reliance news, COO Stephen Koch sold 8,334 shares of Reliance stock in a transaction dated 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 transaction, the chief operating officer directly owned 8,209 shares of the company’s stock, valued at approximately $3,537,011.83. The trade was a 50.38% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.40% of the company’s stock.

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.

Hedge Funds Weigh In On Reliance

A number of hedge funds and other institutional investors have recently made changes to their positions in RS. PensionDanmark Pensionsforsikringsaktieselskab grew its position in Reliance by 542.5% during the second quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 9,766 shares of the industrial products company’s stock valued at $3,649,000 after acquiring an additional 8,246 shares during the last quarter. Cornerstone Capital Inc. bought a new position in shares of Reliance in the 2nd quarter worth approximately $23,725,000. The Manufacturers Life Insurance Company bought a new position in shares of Reliance in the 2nd quarter worth about $8,808,000. Bank of America Corp DE lifted its position 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 acquiring an additional 12,282 shares during the period. Finally, NewEdge Advisors LLC boosted its stake in Reliance by 189.2% during the second quarter. NewEdge Advisors LLC now owns 6,423 shares of the industrial products company’s stock worth $2,399,000 after acquiring an additional 4,202 shares in the last quarter. 79.26% of the stock is owned by institutional investors and hedge funds.

Reliance Trading Down 0.6%

The firm has a market cap of $22.33 billion, a PE ratio of 20.39, a PEG ratio of 0.94 and a beta of 0.95. 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 stock’s fifty day simple moving average is $399.24 and its two-hundred day simple moving average is $367.58.

Reliance (NYSE:RS) last posted its quarterly 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. The firm had revenue of $5.21 billion for the quarter, compared to analysts’ expectations of $4.74 billion. Reliance had a net margin of 6.38% and a return on equity of 15.31%. The business’s revenue for the quarter was up 42.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $3.64 earnings per share. On average, sell-side analysts forecast that Reliance, Inc. will post 24.48 EPS for the current fiscal year.

Reliance Announces Dividend

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

About Reliance

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.