California State Teachers Retirement System Raises Stock Holdings in Reliance, Inc. $RS

Key Points

• California State Teachers Retirement System dramatically increased its Reliance stake by 20,857.7% in the second quarter, ending with 32.97 million shares valued at approximately $12.32 billion. Institutional investors collectively own 79.26% of the company.
• Reliance reported strong quarterly results, with EPS of $6.27 exceeding estimates of $5.47 and revenue rising 26.5% year over year to $4.63 billion. The company provided third-quarter EPS guidance of $6.40–$6.60.
• Shares opened at $398.56, while analysts maintained a generally cautious outlook with an average “Hold” rating and a $377.50 price target. Reliance also declared a quarterly dividend of $1.25, equivalent to a 1.3% annual yield.

California State Teachers Retirement System lifted its stake in shares of Reliance, Inc. (NYSE:RS - Free Report) by 20,857.7% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 32,965,343 shares of the industrial products company's stock after acquiring an additional 32,808,048 shares during the period. California State Teachers Retirement System owned 64.56% of Reliance worth $12,315,852,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. HB Wealth Management LLC lifted its holdings in Reliance by 23.7% in the 2nd quarter. HB Wealth Management LLC now owns 1,854 shares of the industrial products company's stock valued at $693,000 after purchasing an additional 355 shares in the last quarter. Saudi Central Bank raised its position in shares of Reliance by 85.4% in the second quarter. Saudi Central Bank now owns 3,578 shares of the industrial products company's stock valued at $1,337,000 after buying an additional 1,648 shares during the last quarter. Compass Financial Management LLC purchased a new position in shares of Reliance during the second quarter valued at approximately $46,000. AlphaGrep UK Ltd purchased a new position in shares of Reliance during the second quarter valued at approximately $488,000. Finally, denkapparat Operations GmbH acquired a new stake in Reliance during the second quarter worth approximately $400,000. Hedge funds and other institutional investors own 79.26% of the company's stock.

Insider Buying and Selling

In related news, SVP William A. Smith II sold 2,353 shares of the firm'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 value of $974,636.13. Following the sale, the senior vice president owned 19,394 shares of the company's stock, valued at approximately $8,033,188.74. This trade represents a 10.82% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Arthur Ajemyan sold 2,200 shares of the firm's stock in a transaction that occurred on Friday, July 31st. The stock was 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. This trade represents a 13.06% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 0.40% of the company's stock.

Reliance Stock Down 0.5%

Shares of NYSE:RS opened at $398.56 on Wednesday. The firm has a market cap of $20.35 billion, a PE ratio of 23.17, a price-to-earnings-growth ratio of 1.03 and a beta of 0.96. The company has a fifty day simple moving average of $397.95 and a 200 day simple moving average of $364.69. The company has a current ratio of 4.30, a quick ratio of 2.27 and a debt-to-equity ratio of 0.22. Reliance, Inc. has a 12-month low of $260.31 and a 12-month high of $433.02.

Reliance (NYSE:RS - Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The industrial products company reported $6.27 EPS for the quarter, topping analysts' consensus estimates of $5.47 by $0.80. Reliance had a return on equity of 12.51% and a net margin of 5.65%.The business had revenue of $4.63 billion during the quarter, compared to the consensus estimate of $4.26 billion. During the same period last year, the firm earned $4.43 earnings per share. The company's revenue for the quarter was up 26.5% compared to the same quarter last year. Reliance has set its Q3 2026 guidance at 6.400-6.600 EPS. On average, equities research analysts anticipate that Reliance, Inc. will post 22.23 EPS for the current fiscal year.

Reliance Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Friday, August 14th were given a $1.25 dividend. This represents a $5.00 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date was Friday, August 14th. Reliance's dividend payout ratio (DPR) is presently 29.07%.

Analysts Set New Price Targets

RS has been the subject of several recent analyst reports. KeyCorp lifted their target price 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. JPMorgan Chase & Co. reduced their price target on Reliance from $378.00 to $376.00 and set a "neutral" rating on the stock in a research note on Wednesday, July 15th. BMO Capital Markets raised their price objective on Reliance from $390.00 to $415.00 and gave the stock a "market perform" rating in a report on Monday, July 27th. Zacks Research raised Reliance from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 3rd. Finally, Wells Fargo & Company dropped their target price on Reliance from $398.00 to $391.00 and set an "equal weight" rating for the company in a research note on Monday, August 24th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Reliance has an average rating of "Hold" and an average price target of $377.50.

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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