Cornerstone Capital Inc. Buys Shares of 63,505 Reliance, Inc. $RS

Key Points

• Cornerstone Capital bought 63,505 shares of Reliance, valued at approximately $23.7 million, making the stock about 2.1% of its portfolio. Institutional investors collectively own 79.26% of Reliance.
• Reliance reported quarterly earnings of $6.27 per share, beating estimates by $0.80, while revenue rose 26.5% year over year to $4.63 billion. The company guided for third-quarter EPS of $6.40–$6.60.
• The company declared a quarterly dividend of $1.25, equivalent to $5.00 annually and a 1.2% yield. Analysts maintain a consensus “Hold” rating with an average price target of $378.67, below the reported share price of $425.46.

Cornerstone Capital Inc. bought a new position in Reliance, Inc. (NYSE:RS - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 63,505 shares of the industrial products company's stock, valued at approximately $23,725,000. Reliance makes up about 2.1% of Cornerstone Capital Inc.'s portfolio, making the stock its 20th largest holding. Cornerstone Capital Inc. owned 0.12% of Reliance as of its most recent SEC filing.

Several other hedge funds also recently modified their holdings of RS. Royal Bank of Canada increased its position in Reliance by 6.6% during the first quarter. Royal Bank of Canada now owns 15,111 shares of the industrial products company's stock worth $4,364,000 after buying an additional 940 shares during the last quarter. Empowered Funds LLC lifted its position in shares of Reliance by 4.8% in the first quarter. Empowered Funds LLC now owns 5,662 shares of the industrial products company's stock worth $1,635,000 after buying an additional 258 shares during the last quarter. Geneos Wealth Management Inc. lifted its position in shares of Reliance by 99.2% in the first quarter. Geneos Wealth Management Inc. now owns 263 shares of the industrial products company's stock worth $76,000 after buying an additional 131 shares during the last quarter. Walleye Capital LLC boosted its stake in shares of Reliance by 2,192.5% during the 2nd quarter. Walleye Capital LLC now owns 1,215 shares of the industrial products company's stock worth $381,000 after acquiring an additional 1,162 shares in the last quarter. Finally, Marshall Wace LLP bought a new stake in shares of Reliance during the 2nd quarter worth about $1,318,000. Institutional investors and hedge funds own 79.26% of the company's stock.

Reliance Trading Up 0.1%

Shares of NYSE:RS opened at $425.46 on Friday. The company has a debt-to-equity ratio of 0.22, a quick ratio of 2.27 and a current ratio of 4.30. The stock's 50-day moving average is $398.82 and its 200-day moving average is $358.01. The company has a market cap of $21.72 billion, a P/E ratio of 24.74, a P/E/G ratio of 1.09 and a beta of 0.96. Reliance, Inc. has a 52-week low of $260.31 and a 52-week high of $433.02.

Reliance (NYSE:RS - Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The industrial products company reported $6.27 earnings per share for the quarter, topping the consensus estimate of $5.47 by $0.80. The business had revenue of $4.63 billion during 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%.The firm's revenue was up 26.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $4.43 EPS. Reliance has set its Q3 2026 guidance at 6.400-6.600 EPS. Equities research analysts predict that Reliance, Inc. will post 22.23 earnings per share for the current year.

Reliance Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be given a $1.25 dividend. This represents a $5.00 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend is Friday, August 14th. Reliance's dividend payout ratio is currently 29.07%.

Insider Activity at Reliance

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

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on RS shares. Wall Street Zen downgraded Reliance from a "strong-buy" rating to a "buy" rating in a research note on Saturday. KeyCorp upped their target price on Reliance from $378.00 to $418.00 and gave the stock an "overweight" rating in a research report on Wednesday, June 24th. Citigroup reiterated a "neutral" rating on shares of Reliance in a report on Wednesday, July 29th. Zacks Research raised shares of Reliance from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 3rd. Finally, JPMorgan Chase & Co. reduced their price objective 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. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Reliance has a consensus rating of "Hold" and a consensus price target of $378.67.

Reliance Company Profile

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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