Reliance (NYSE:RS) Stock Gets Price Target Increase from JPMorgan Chase & Co.

Key Points

• JPMorgan raised Reliance’s price target to $420 from $400 while maintaining a “neutral” rating, implying roughly 3.9% downside from the prior close.
• Analyst sentiment remains broadly cautious: Reliance has a consensus “Hold” rating and an average price target of $400.29, despite some firms issuing more bullish recommendations.
• Reliance reported strong quarterly results, with EPS of $8.02 exceeding the $6.83 consensus estimate and revenue rising 42.8% year over year to $5.21 billion; the stock rose 1.0% to $437.04.

Reliance (NYSE:RS - Get Free Report) had its target price boosted by research analysts at JPMorgan Chase & Co. from $400.00 to $420.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The brokerage presently has a "neutral" rating on the industrial products company's stock. JPMorgan Chase & Co.'s price target would indicate a potential downside of 3.90% from the company's previous close.

A number of other brokerages have also recently commented on RS. Zacks Research raised Reliance from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 3rd. Wells Fargo & Company raised their price objective on Reliance from $391.00 to $420.00 and gave the company an "equal weight" rating in a research report on Thursday, October 22nd. KeyCorp lifted their price objective on Reliance from $421.00 to $437.00 and gave the company an "overweight" rating in a research note on Monday. Citigroup reissued a "neutral" rating on shares of Reliance in a report on Wednesday, July 29th. Finally, BMO Capital Markets boosted their target price on Reliance from $390.00 to $415.00 and gave the stock a "market perform" rating in a report on Monday, July 27th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $400.29.

Reliance Stock Up 1.0%

NYSE RS traded up $4.25 during trading hours on Wednesday, reaching $437.04. 210,144 shares of the company's stock traded hands, compared to its average volume of 341,337. Reliance has a 52-week low of $263.12 and a 52-week high of $437.36. The firm has a market cap of $22.32 billion, a PE ratio of 20.33, a PEG ratio of 0.89 and a beta of 0.95. The firm has a 50-day simple moving average of $398.07 and a 200 day simple moving average of $366.28. The company has a debt-to-equity ratio of 0.21, a current ratio of 4.12 and a quick ratio of 2.22.

Reliance (NYSE:RS - Get Free Report) last posted its quarterly earnings data on Wednesday, October 21st. The industrial products company reported $8.02 EPS for the quarter, topping the consensus estimate of $6.83 by $1.19. Reliance had a net margin of 6.38% and a return on equity of 15.31%. The business had revenue of $5.21 billion for the quarter, compared to analyst estimates of $4.74 billion. During the same quarter in the previous year, the firm posted $3.64 earnings per share. Reliance's quarterly revenue was up 42.8% on a year-over-year basis. Sell-side analysts anticipate that Reliance will post 24.63 EPS for the current fiscal year.

Insider Activity

In other news, CFO Arthur Ajemyan sold 2,200 shares of the stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $410.11, for a total transaction of $902,242.00. Following the sale, the chief financial officer owned 14,640 shares in the company, valued at $6,004,010.40. This represents a 13.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Corporate insiders own 0.40% of the company's stock.

Institutional Investors Weigh In On Reliance

Several institutional investors and hedge funds have recently made changes to their positions in RS. Childress Capital Advisors LLC lifted its position in Reliance by 4.9% in the 3rd quarter. Childress Capital Advisors LLC now owns 600 shares of the industrial products company's stock valued at $231,000 after acquiring an additional 28 shares in the last quarter. Citizens Financial Group Inc. RI increased its holdings in shares of Reliance by 4.9% in the 3rd quarter. Citizens Financial Group Inc. RI now owns 616 shares of the industrial products company's stock worth $237,000 after purchasing an additional 29 shares in the last quarter. Parallel Advisors LLC boosted its position in shares of Reliance by 1.7% during the first quarter. Parallel Advisors LLC now owns 1,908 shares of the industrial products company's stock valued at $580,000 after buying an additional 31 shares during the last quarter. Greenleaf Trust boosted its position in shares of Reliance by 2.0% during the second quarter. Greenleaf Trust now owns 1,614 shares of the industrial products company's stock valued at $603,000 after buying an additional 32 shares during the last quarter. Finally, Kathmere Capital Management LLC boosted its position in shares of Reliance by 4.8% during the first quarter. Kathmere Capital Management LLC now owns 824 shares of the industrial products company's stock valued at $250,000 after buying an additional 38 shares during the last quarter. Institutional investors own 79.26% of the company's stock.

Key Reliance News

Here are the key news stories impacting Reliance this week:

• Neutral Sentiment: Jio Platforms reportedly debuted at a roughly 21% premium following its ₹30,213 crore IPO, lifting Reliance Industries’ combined group valuation above Tata Group and Adani Group. This is relevant to Reliance Industries shareholders, but not directly to Reliance, Inc. NYSE: RS. Jio IPO helps Reliance overtake Tata Group as India's most valuable conglomerate
• Neutral Sentiment: Coverage highlights Jio’s listing as a major wealth-creation event and identifies it as the 12th Reliance Group company to list on India’s exchanges. These developments do not affect RS’s operations, earnings or valuation. Jio Platforms becomes 12th Reliance Group company to list on NSE
• Neutral Sentiment: Other reports discuss Reliance Industries’ valuation, its history of wealth creation and expectations surrounding Jio’s market debut. Investors in RS should avoid treating these headlines as news about the NYSE-listed company. Jio becomes India’s second-most valuable company
• Neutral Sentiment: A separate report says Reliance Industries awarded VA Tech Wabag an approximately ₹1,000 crore order. This may benefit the supplier, but it is not an announcement from Reliance, Inc. and should not materially influence RS. VA Tech Wabag receives order from Reliance Industries

Reliance Company Profile

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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