Reliance (NYSE:RS) Hits New 1-Year High Following Earnings Beat

Key Points

• Reliance shares reached a new 52-week high after the company reported quarterly EPS of $8.02 and revenue of $5.21 billion, exceeding analyst expectations. Revenue increased 42.8% year over year.
• Operating momentum remained strong, with tons sold rising 15.6% year over year and pretax income more than doubling to $531.9 million. The board also increased its share-repurchase authorization to $2.5 billion.
• Reliance maintained its quarterly dividend at $1.25 per share, or $5.00 annualized, representing an approximately 1.2% yield. Despite the earnings beat, analysts’ consensus rating remains Hold, with an average price target of $391.57.

Reliance, Inc. (NYSE:RS - Get Free Report) reached a new 52-week high during mid-day trading on Thursday following a better than expected earnings announcement. The stock traded as high as $435.00 and last traded at $421.3950, with a volume of 29,673 shares. The stock had previously closed at $421.07.

The industrial products company reported $8.02 earnings per share for the quarter, beating the consensus estimate of $6.83 by $1.19. The company had revenue of $5.21 billion during the quarter, compared to the consensus estimate of $4.74 billion. Reliance had a return on equity of 12.51% and a net margin of 5.65%. Reliance's revenue was up 42.8% compared to the same quarter last year. During the same period in the previous year, the company posted $3.64 EPS.

Reliance Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, December 4th. Investors of record on Friday, November 20th will be paid a dividend of $1.25 per share. This represents a $5.00 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Friday, November 20th. Reliance's dividend payout ratio is presently 29.07%.

Key Headlines Impacting Reliance

Here are the key news stories impacting Reliance this week:

• Positive Sentiment: Quarterly earnings and revenue exceeded expectations. Reliance reported third-quarter revenue of $5.21 billion, up 42.8% year over year and above the roughly $4.74 billion analyst estimate. Adjusted EPS was reported at $8.02, beating the $6.76–$6.83 consensus range; GAAP diluted EPS was $7.84 versus $3.59 a year earlier. Reliance Tops Q3 Earnings and Revenue Estimates
• Positive Sentiment: Operating momentum was broad-based. Tons sold increased 4.3% sequentially and 15.6% year over year, while pretax income rose 114.7% to $531.9 million. The results suggest strong demand and improved profitability for the industrial-products distributor. Reliance Reports Third Quarter 2026 Financial Results
• Positive Sentiment: Reliance increased capital returns. The board raised its share-repurchase authorization to $2.5 billion. The company returned approximately $109 million to shareholders during the quarter through dividends and buybacks, reinforcing the investment case for the stock.
• Positive Sentiment: The quarterly dividend was maintained at $1.25 per share. The $5.00 annualized payout equates to a yield of approximately 1.2%, with payment scheduled for December 4 to shareholders of record on November 20.
• Neutral Sentiment: Institutional positioning was mixed. In the latest reporting period, 323 institutions added RS shares while 262 reduced their positions, indicating continued interest but no uniform institutional view.
• Negative Sentiment: Insider trading was a modest cautionary signal. Company insiders reported six sales and no purchases over the past six months. These transactions may reflect personal liquidity needs, but they offer less support for investor sentiment than insider buying would.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on RS shares. JPMorgan Chase & Co. raised their price target on Reliance from $390.00 to $400.00 and gave the company a "neutral" rating in a research note on Friday, October 9th. BMO Capital Markets increased their price objective 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 research report on Wednesday, July 29th. Wells Fargo & Company set a $420.00 target price on Reliance in a research report on Thursday. Finally, KeyCorp increased their price target on shares of Reliance from $418.00 to $421.00 and gave the company an "overweight" rating in a research note on Monday, October 5th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Reliance currently has a consensus rating of "Hold" and an average price target of $391.57.

Insiders Place Their Bets

In other Reliance news, CFO Arthur Ajemyan sold 2,200 shares of Reliance stock in a transaction on Friday, July 31st. The shares were sold at an average price of $410.11, for a total value of $902,242.00. Following the transaction, the chief financial officer directly owned 14,640 shares in the company, valued at approximately $6,004,010.40. The trade was a 13.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP William Smith, II sold 2,353 shares of the company's stock in a transaction dated 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 sale, the senior vice president directly owned 19,394 shares of the company's stock, valued at $8,033,188.74. The trade was a 10.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.40% of the company's stock.

Hedge Funds Weigh In On Reliance

Institutional investors have recently added to or reduced their stakes in the stock. Root Financial Partners LLC acquired a new position in shares of Reliance in the third quarter valued at approximately $88,000. Reyes Financial Architecture Inc. acquired a new stake in shares of Reliance during the third quarter worth $43,000. Crossmark Global Holdings Inc. lifted its holdings in shares of Reliance by 22.5% during the third quarter. Crossmark Global Holdings Inc. now owns 3,148 shares of the industrial products company's stock worth $1,211,000 after purchasing an additional 578 shares during the period. Quadrant Capital Group LLC lifted its holdings in shares of Reliance by 3.2% during the third quarter. Quadrant Capital Group LLC now owns 4,057 shares of the industrial products company's stock worth $1,639,000 after purchasing an additional 125 shares during the period. Finally, Nisa Investment Advisors LLC grew its position in Reliance by 2.8% in the 3rd quarter. Nisa Investment Advisors LLC now owns 25,656 shares of the industrial products company's stock valued at $9,871,000 after buying an additional 708 shares during the last quarter. Institutional investors and hedge funds own 79.26% of the company's stock.

Reliance Trading Down 1.5%

The business's 50-day moving average is $397.92 and its two-hundred day moving average is $384.60. 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 has a market capitalization of $21.18 billion, a PE ratio of 24.02, a price-to-earnings-growth ratio of 0.96 and a beta of 0.95.

Reliance Company Profile

Reliance, Inc NYSE: RS is a diversified metals service center company that supplies processed metal products and related services to industrial manufacturers, fabricators, and other commercial customers. Its product offerings include carbon steel, stainless steel, aluminum, copper, brass, and other specialty metals.

The company provides value-added processing services such as cutting, slitting, leveling, blanking, machining, forming, and precision sawing. These services allow customers to purchase metals in customized sizes and specifications, helping reduce their need for in-house processing and inventory management.

Founded in 1939, Reliance serves a broad range of industries, including nonresidential construction, transportation, aerospace and defense, energy, electronics, machinery, and general manufacturing.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.