Hsbc Holdings PLC Makes New Investment in Reliance, Inc. $RS

Key Points

• HSBC Holdings acquired 226,697 shares of Reliance, valued at approximately $84.8 million, representing about 0.44% of the company. Institutional investors collectively own 79.26% of Reliance.
• Reliance exceeded quarterly expectations with EPS of $6.27 versus the $5.47 consensus and revenue of $4.63 billion, up 26.5% year over year. The company issued third-quarter EPS guidance of $6.40–$6.60.
• Analyst sentiment remains mixed, with the stock carrying an average “Hold” rating and a $377.50 average price target. Reliance also declared a quarterly dividend of $1.25 per share, equal to a 1.3% yield.

Hsbc Holdings PLC acquired a new stake in Reliance, Inc. (NYSE:RS - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 226,697 shares of the industrial products company's stock, valued at approximately $84,764,000. Hsbc Holdings PLC owned approximately 0.44% of Reliance as of its most recent SEC filing.

A number of other hedge funds also recently made changes to their positions in RS. XXEC Inc. purchased a new position in shares of Reliance in the second quarter valued at $127,493,000. BlackRock Inc. acquired a new stake in Reliance during the 2nd quarter valued at $2,171,081,000. State Street Corp increased its stake in Reliance by 4.5% during the 4th quarter. State Street Corp now owns 2,715,764 shares of the industrial products company's stock worth $784,503,000 after buying an additional 118,009 shares during the period. Boston Partners increased its stake in Reliance by 27.5% during the 3rd quarter. Boston Partners now owns 2,247,603 shares of the industrial products company's stock worth $631,224,000 after buying an additional 484,286 shares during the period. Finally, Wellington Management Group LLP lifted its holdings in Reliance by 25.2% in the 3rd quarter. Wellington Management Group LLP now owns 1,708,756 shares of the industrial products company's stock worth $479,870,000 after buying an additional 343,598 shares in the last quarter. Hedge funds and other institutional investors own 79.26% of the company's stock.

Analyst Ratings Changes

Several brokerages have recently weighed in on RS. Wall Street Zen upgraded Reliance from a "buy" rating to a "strong-buy" rating in a research note on Sunday. Zacks Research upgraded Reliance from a "hold" rating to a "strong-buy" rating in a research note on Monday, August 3rd. BMO Capital Markets increased their price target on Reliance from $390.00 to $415.00 and gave the company a "market perform" rating in a report on Monday, July 27th. Citigroup reissued a "neutral" rating on shares of Reliance in a report on Wednesday, July 29th. Finally, Bank of America lowered Reliance from a "neutral" rating to an "underperform" rating and set a $365.00 price objective for the company. in a research note on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $377.50.

Reliance Trading Up 1.8%

NYSE RS opened at $390.63 on Thursday. The company has a market capitalization of $19.95 billion, a price-to-earnings ratio of 22.71, a price-to-earnings-growth ratio of 0.99 and a beta of 0.96. The company has a debt-to-equity ratio of 0.22, a current ratio of 4.30 and a quick ratio of 2.27. Reliance, Inc. has a 12 month low of $260.31 and a 12 month high of $433.02. The company's fifty day moving average price is $397.51 and its two-hundred day moving average price is $361.79.

Reliance (NYSE:RS - Get Free Report) last released its earnings results 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 company had revenue of $4.63 billion during the quarter, compared to the consensus estimate of $4.26 billion. Reliance had a net margin of 5.65% and a return on equity of 12.51%. The company's revenue was up 26.5% on a year-over-year basis. 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. As a group, research analysts predict that Reliance, Inc. will post 22.23 earnings per share for the current fiscal year.

Reliance Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be paid a dividend of $1.25 per share. The ex-dividend date is Friday, August 14th. This represents a $5.00 annualized dividend and a yield of 1.3%. Reliance's dividend payout ratio is presently 29.07%.

Insider Activity at Reliance

In other Reliance news, CFO Arthur Ajemyan sold 2,200 shares of the stock in a transaction that occurred on Friday, July 31st. The stock was 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 $6,004,010.40. This trade represents a 13.06% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, SVP William A. Smith II sold 2,353 shares of Reliance 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 completion of the transaction, the senior vice president owned 19,394 shares of the company's stock, valued at approximately $8,033,188.74. The trade was a 10.82% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.40% of the company's stock.

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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