Reliance (NYSE:RS) Lowered to "Buy" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Reliance from “strong buy” to “buy,” while the broader analyst consensus remains “hold” with an average price target of $377.50.
• Reliance reported quarterly EPS of $6.27, beating estimates of $5.47, while revenue reached $4.63 billion and increased 26.5% year over year. Management guided for third-quarter EPS of $6.40–$6.60.
• Company insiders recently sold shares, including the CFO’s $902,242 transaction and an SVP’s $974,636 sale; insiders own 0.40% of the stock, compared with 79.26% held by institutional investors.

Reliance (NYSE:RS - Get Free Report) was downgraded by Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report released on Monday.

A number of other analysts have also commented on RS. Zacks Research raised Reliance from a "hold" rating to a "strong-buy" rating in a research note on Monday, August 3rd. JPMorgan Chase & Co. cut their target price on shares of Reliance from $378.00 to $376.00 and set a "neutral" rating for the company in a research note on Wednesday, July 15th. BMO Capital Markets upped their target price on shares of Reliance from $390.00 to $415.00 and gave the company a "market perform" rating in a report on Monday, July 27th. KeyCorp raised their price target on shares of Reliance from $378.00 to $418.00 and gave the stock an "overweight" rating in a research note on Wednesday, June 24th. Finally, Citigroup reissued a "neutral" rating on shares of Reliance in a research report on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $377.50.

Reliance Trading Down 0.0%

Shares of Reliance stock opened at $387.57 on Monday. Reliance has a 1 year low of $260.31 and a 1 year high of $433.02. The company has a debt-to-equity ratio of 0.22, a current ratio of 4.30 and a quick ratio of 2.27. The business has a 50 day moving average price of $397.24 and a 200 day moving average price of $362.31. The company has a market capitalization of $19.79 billion, a P/E ratio of 22.53, a P/E/G ratio of 1.00 and a beta of 0.96.

Reliance (NYSE:RS - Get Free Report) last announced its earnings results on Wednesday, July 22nd. The industrial products company reported $6.27 EPS for the quarter, beating analysts' consensus estimates of $5.47 by $0.80. The firm had revenue of $4.63 billion for the quarter, compared to analysts' expectations of $4.26 billion. Reliance had a return on equity of 12.51% and a net margin of 5.65%.Reliance's quarterly revenue was up 26.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $4.43 EPS. Reliance has set its Q3 2026 guidance at 6.400-6.600 EPS. Sell-side analysts anticipate that Reliance will post 22.23 EPS for the current fiscal year.

Insider Activity

In related news, CFO Arthur Ajemyan sold 2,200 shares of the business's stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $410.11, for a total value of $902,242.00. Following the completion of the sale, the chief financial officer directly owned 14,640 shares in the company, valued at approximately $6,004,010.40. The trade was a 13.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP William A. Smith II sold 2,353 shares of the company's stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $414.21, for a total transaction of $974,636.13. Following the transaction, the senior vice president directly owned 19,394 shares of the company's stock, valued at $8,033,188.74. This trade represents a 10.82% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.40% of the stock is owned by insiders.

Institutional Investors Weigh In On Reliance

Several institutional investors have recently bought and sold shares of the business. Costello Asset Management INC purchased a new stake in Reliance during the 1st quarter worth $30,000. N.E.W. Advisory Services LLC purchased a new position in Reliance in the 2nd quarter valued at about $37,000. Brown Brothers Harriman & Co. grew its stake in shares of Reliance by 86.2% during the fourth quarter. Brown Brothers Harriman & Co. now owns 108 shares of the industrial products company's stock valued at $31,000 after acquiring an additional 50 shares in the last quarter. Compass Financial Management LLC acquired a new stake in shares of Reliance during the second quarter valued at about $46,000. Finally, Osterweis Capital Management Inc. purchased a new stake in shares of Reliance during the second quarter worth about $41,000. 79.26% of the stock is currently owned by hedge funds and other institutional investors.

About Reliance

Reliance Steel & Aluminum Co NYSE: RS is a leading metals service center company that distributes and processes a broad array of metal products. The company offers cut-to-length, shearing, blanking, sawing, bending, machining and value-added services for carbon and alloy steel, stainless steel, aluminum, brass, titanium and specialty metal alloys. Its products serve diverse end markets, including energy, infrastructure, general manufacturing, transportation, aerospace and defense.

Founded in 1939 in Los Angeles, Reliance Steel & Aluminum has grown through a combination of organic expansion and strategic acquisitions.

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