Encompass Capital Advisors LLC Makes New $14.43 Million Investment in Reliance, Inc. $RS

Key Points

• Encompass Capital Advisors LLC acquired 49,986 shares of Reliance, Inc., valued at approximately $14.4 million, increasing its ownership to 0.10% by the end of the recent quarter.
• Reliance reported $4.43 EPS for the last quarter, missing analyst expectations, with revenue of $3.66 billion and a guidance for Q3 2025 set between 3.600 and 3.800 EPS.
• The company declared a quarterly dividend of $1.20, resulting in an annualized yield of 1.7% and a payout ratio of 35.04%.

Encompass Capital Advisors LLC purchased a new position in shares of Reliance, Inc. (NYSE:RS - Free Report) during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 49,986 shares of the industrial products company's stock, valued at approximately $14,433,000. Encompass Capital Advisors LLC owned 0.10% of Reliance at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently bought and sold shares of RS. Nuveen LLC purchased a new stake in Reliance during the first quarter worth about $144,089,000. Boston Partners increased its stake in Reliance by 42.7% during the first quarter. Boston Partners now owns 1,021,900 shares of the industrial products company's stock worth $295,052,000 after purchasing an additional 305,620 shares during the period. GAMMA Investing LLC increased its stake in Reliance by 33,792.2% during the first quarter. GAMMA Investing LLC now owns 278,933 shares of the industrial products company's stock worth $80,542,000 after purchasing an additional 278,110 shares during the period. American Century Companies Inc. increased its stake in Reliance by 37.9% during the first quarter. American Century Companies Inc. now owns 588,878 shares of the industrial products company's stock worth $170,039,000 after purchasing an additional 161,892 shares during the period. Finally, Nuveen Asset Management LLC increased its stake in Reliance by 22.8% during the fourth quarter. Nuveen Asset Management LLC now owns 424,952 shares of the industrial products company's stock worth $114,423,000 after purchasing an additional 78,877 shares during the period. 79.26% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the stock. Wells Fargo & Company upgraded shares of Reliance to a "hold" rating in a research note on Thursday, August 14th. Zacks Research downgraded Reliance from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 13th. Two investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $323.50.

Reliance Stock Up 1.2%

Shares of Reliance stock traded up $3.66 on Friday, reaching $298.62. 237,979 shares of the company were exchanged, compared to its average volume of 287,546. Reliance, Inc. has a 1-year low of $250.07 and a 1-year high of $347.43. The company has a market cap of $15.70 billion, a P/E ratio of 21.80, a price-to-earnings-growth ratio of 1.42 and a beta of 0.89. The company has a debt-to-equity ratio of 0.14, a current ratio of 3.18 and a quick ratio of 1.51. The stock's 50 day moving average price is $304.91 and its 200-day moving average price is $296.60.

Reliance (NYSE:RS - Get Free Report) last posted its earnings results on Wednesday, July 23rd. The industrial products company reported $4.43 earnings per share for the quarter, missing the consensus estimate of $4.72 by ($0.29). The business had revenue of $3.66 billion for the quarter, compared to analysts' expectations of $3.66 billion. Reliance had a return on equity of 10.48% and a net margin of 5.39%.Reliance's revenue for the quarter was up .5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $4.65 EPS. Reliance has set its Q3 2025 guidance at 3.600-3.800 EPS. As a group, equities analysts forecast that Reliance, Inc. will post 16.98 EPS for the current year.

Reliance Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 29th. Investors of record on Friday, August 15th were paid a dividend of $1.20 per share. The ex-dividend date was Friday, August 15th. This represents a $4.80 annualized dividend and a yield of 1.6%. Reliance's payout ratio is presently 35.04%.

About Reliance

Reliance, Inc operates as a diversified metal solutions provider and the metals service center company in the United States, Canada, and internationally. The company distributes a line of approximately 100,000 metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium, and specialty steel products; and provides metals processing services to general manufacturing, non-residential construction, transportation, aerospace, energy, electronics and semiconductor fabrication, and heavy industries.