XXEC Inc. Takes $127.49 Million Position in Reliance, Inc. $RS

Key Points

• XXEC Inc. acquired a major Reliance position in the second quarter, purchasing 48.17 million shares valued at approximately $127.5 million. Institutional investors collectively own 79.26% of Reliance.
• Reliance reported strong quarterly results, with EPS of $6.27 beating estimates of $5.47 and revenue rising 26.5% year over year to $4.63 billion. The company guided to third-quarter EPS of $6.40–$6.60.
• Reliance declared a quarterly dividend of $1.25, equivalent to $5.00 annually and a 1.3% yield. Analysts maintain a consensus “Hold” rating, with an average price target of $378.67.

XXEC Inc. bought a new position in shares of Reliance, Inc. (NYSE:RS - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 48,167,353 shares of the industrial products company's stock, valued at approximately $127,493,000. Reliance comprises about 0.1% of XXEC Inc.'s portfolio, making the stock its 21st largest holding. XXEC Inc. owned 94.33% of Reliance at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of RS. Costello Asset Management INC purchased a new stake in Reliance in the 1st quarter valued at $30,000. N.E.W. Advisory Services LLC purchased a new position in Reliance during the 2nd quarter worth $37,000. Brown Brothers Harriman & Co. increased its stake in Reliance by 86.2% in the fourth quarter. Brown Brothers Harriman & Co. now owns 108 shares of the industrial products company's stock valued at $31,000 after purchasing an additional 50 shares during the period. Greenline Wealth Management LLC acquired a new position in Reliance in the fourth quarter valued at $32,000. Finally, Quarry LP purchased a new stake in shares of Reliance in the third quarter valued at about $32,000. 79.26% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other 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 transaction, the senior vice president directly owned 19,394 shares of the company's stock, 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 SEC, which is available through this hyperlink. Also, CFO Arthur Ajemyan sold 2,200 shares of the stock in a transaction dated Friday, July 31st. The shares were sold at an average price of $410.11, for a total transaction of $902,242.00. Following the completion of the transaction, the chief financial officer owned 14,640 shares of the company's stock, valued at $6,004,010.40. This represents a 13.06% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.40% of the stock is currently owned by company insiders.

Reliance Trading Up 1.9%

Shares of Reliance stock opened at $387.58 on Friday. The firm has a market cap of $19.79 billion, a price-to-earnings ratio of 22.53, a price-to-earnings-growth ratio of 1.00 and a beta of 0.96. Reliance, Inc. has a 52-week low of $260.31 and a 52-week high of $433.02. The company's 50-day simple moving average is $398.80 and its 200-day simple moving average is $360.65. The company has a quick ratio of 2.27, a current ratio of 4.30 and a debt-to-equity ratio of 0.22.

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

Reliance Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be issued a $1.25 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $5.00 dividend on an annualized basis and a yield of 1.3%. Reliance's dividend payout ratio (DPR) is 29.07%.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the stock. Wells Fargo & Company increased their target price on shares of Reliance from $372.00 to $398.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 23rd. Bank of America downgraded 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. BMO Capital Markets increased their price objective on Reliance from $390.00 to $415.00 and gave the stock a "market perform" rating in a research report on Monday, July 27th. Citigroup reiterated a "neutral" rating on shares of Reliance in a research note on Wednesday, July 29th. Finally, JPMorgan Chase & Co. dropped their target price on Reliance from $378.00 to $376.00 and set a "neutral" rating on the stock in a report on Wednesday, July 15th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Reliance currently has an average rating of "Hold" and an average price target of $378.67.

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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