Reliance (NYSE:RS) Stock Moved Up to “Strong-Buy” by Wall Street Zen

Wall Street Zen upgraded shares of Reliance (NYSE:RS) from a buy rating to a strong-buy rating in a research report released on Saturday,Wall Street Zen reports.

Several other research analysts also recently commented on RS. JPMorgan Chase & Co. raised their target price on Reliance from $400.00 to $420.00 and gave the stock a “neutral” rating in a research note on Wednesday. Barclays upped their price target on Reliance from $420.00 to $445.00 and gave the company an “equal weight” rating in a research report on Monday, October 26th. Citigroup reiterated a “neutral” rating on shares of Reliance in a research report on Wednesday, July 29th. BMO Capital Markets increased their price target 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. Finally, Zacks Research upgraded shares of Reliance from a “hold” rating to a “strong-buy” rating in a research report on Monday, August 3rd. One investment 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 assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Reliance presently has a consensus rating of “Hold” and a consensus price target of $400.29.

Reliance Trading Down 0.6%

Shares of RS stock opened at $437.28 on Friday. The company has a 50 day moving average of $400.34 and a 200-day moving average of $368.21. The company has a quick ratio of 2.22, a current ratio of 4.12 and a debt-to-equity ratio of 0.21. Reliance has a 12-month low of $263.12 and a 12-month high of $442.94. The firm has a market cap of $22.28 billion, a P/E ratio of 20.39, a PEG ratio of 0.92 and a beta of 0.95.

Reliance (NYSE:RS) last posted its quarterly earnings results on Wednesday, October 21st. The industrial products company reported $8.02 EPS for the quarter, topping analysts’ consensus estimates of $6.83 by $1.19. The company 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%. Reliance’s revenue was up 42.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.64 EPS. Sell-side analysts anticipate that Reliance will post 24.99 earnings per share for the current year.

Reliance Dividend Announcement

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

Insider Buying and Selling

In related news, COO Stephen Koch sold 8,334 shares of the firm’s 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. This trade represents a 50.38% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. 0.40% of the stock is currently owned by corporate insiders.

Institutional Trading of Reliance

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Costello Asset Management INC purchased a new stake in Reliance during the 1st quarter valued at $30,000. N.E.W. Advisory Services LLC bought a new position in shares of Reliance during the 2nd quarter valued at $37,000. Osterweis Capital Management Inc. purchased a new position in shares of Reliance in the 2nd quarter worth $41,000. Reyes Financial Architecture Inc. purchased a new position in shares of Reliance in the 3rd quarter worth $43,000. Finally, Compass Financial Management LLC purchased a new position in shares of Reliance in the 2nd quarter worth $46,000. Hedge funds and other institutional investors own 79.26% of the company’s stock.

More 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.

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.