Reliance (NYSE:RS) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Reliance to “strong buy” from “buy,” while the broader analyst consensus remains “hold” with a $400.29 target price.
• Reliance reported strong quarterly results, with EPS of $8.02 versus the $6.83 estimate and revenue up 42.8% year over year to $5.21 billion.
• Shares opened at $437.28, near their 52-week high, while COO Stephen Koch sold 8,334 shares worth approximately $3.59 million, cutting his position by about 50%.

Reliance (NYSE:RS - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a note issued to investors on Saturday, Wall Street Zen reports.

RS has been the subject of several other reports. JPMorgan Chase & Co. upped their price objective on Reliance from $400.00 to $420.00 and gave the stock a "neutral" rating in a research report on Wednesday. BMO Capital Markets lifted their target price on Reliance from $390.00 to $415.00 and gave the company a "market perform" rating in a research report on Monday, July 27th. Zacks Research upgraded Reliance from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 3rd. Wells Fargo & Company boosted their target price on Reliance from $391.00 to $420.00 and gave the stock an "equal weight" rating in a research note on Thursday, October 22nd. Finally, KeyCorp increased their target price on shares of Reliance from $421.00 to $437.00 and gave the stock an "overweight" rating in a report on Monday. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $400.29.

Reliance Stock Performance

Shares of NYSE:RS opened at $437.28 on Friday. Reliance has a 1 year low of $263.12 and a 1 year high of $442.94. The stock has a market capitalization of $22.28 billion, a price-to-earnings ratio of 20.39, a price-to-earnings-growth ratio of 0.93 and a beta of 0.95. The company has a debt-to-equity ratio of 0.21, a current ratio of 4.12 and a quick ratio of 2.22. The company's 50 day simple moving average is $400.34 and its 200 day simple moving average is $368.21.

Reliance (NYSE:RS - Get Free Report) last released its earnings results on Wednesday, October 21st. The industrial products company reported $8.02 earnings per share for the quarter, topping the consensus estimate 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 during the quarter, compared to analysts' expectations of $4.74 billion. During the same period in the prior year, the company earned $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 will post 24.99 EPS for the current fiscal year.

Insider Activity

In other 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 value of $3,590,870.58. Following the completion of the transaction, the chief operating officer directly owned 8,209 shares in the company, valued at approximately $3,537,011.83. This represents a 50.38% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.40% of the company's stock.

Institutional Investors Weigh In On Reliance

Several hedge funds have recently modified their holdings of the company. XXEC Inc. bought a new stake in Reliance in the 2nd quarter worth $127,493,000. BlackRock Inc. bought a new stake in shares of Reliance in the 2nd quarter worth approximately $2,171,081,000. Bank of New York Mellon Corp bought a new stake in shares of Reliance in the 2nd quarter worth approximately $176,913,000. William Blair Investment Management LLC purchased a new position in shares of Reliance during the second quarter valued at approximately $142,900,000. Finally, Corient Private Wealth LP purchased a new position in shares of Reliance during the second quarter valued at approximately $129,799,000. Institutional investors and hedge funds own 79.26% of the company's stock.

Trending Headlines about Reliance

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.

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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