Reliance (NYSE:RS) Sets New 12-Month High - Here's Why

Key Points

• Reliance, Inc. (NYSE: RS) reached a new 52-week high of $435.81, above its 50-day and 200-day moving averages.
• The company reported strong quarterly results, with EPS of $8.02 versus $6.83 expected and revenue of $5.21 billion, up 42.8% year over year. It also announced a quarterly dividend of $1.25 per share.
• Despite a recent Zacks upgrade to “strong buy,” the analyst consensus remains “Hold”, with an average price target of $397.43—below the stock’s current price. News about Jio Platforms and Reliance Industries in India is unrelated to NYSE-listed Reliance, Inc.

Shares of Reliance, Inc. (NYSE:RS - Get Free Report) reached a new 52-week high during mid-day trading on Wednesday. The company traded as high as $435.81 and last traded at $435.9960, with a volume of 111,970 shares traded. The stock had previously closed at $432.79.

Key Headlines Impacting Reliance

Here are the key news stories impacting Reliance this week:

• Neutral Sentiment: Jio Platforms reportedly debuted at a roughly 21% premium following its ₹30,213 crore IPO, lifting Reliance Industries’ combined group valuation above Tata Group and Adani Group. This is relevant to Reliance Industries shareholders, but not directly to Reliance, Inc. NYSE: RS. Jio IPO helps Reliance overtake Tata Group as India's most valuable conglomerate
• Neutral Sentiment: Coverage highlights Jio’s listing as a major wealth-creation event and identifies it as the 12th Reliance Group company to list on India’s exchanges. These developments do not affect RS’s operations, earnings or valuation. Jio Platforms becomes 12th Reliance Group company to list on NSE
• Neutral Sentiment: Other reports discuss Reliance Industries’ valuation, its history of wealth creation and expectations surrounding Jio’s market debut. Investors in RS should avoid treating these headlines as news about the NYSE-listed company. Jio becomes India’s second-most valuable company
• Neutral Sentiment: A separate report says Reliance Industries awarded VA Tech Wabag an approximately ₹1,000 crore order. This may benefit the supplier, but it is not an announcement from Reliance, Inc. and should not materially influence RS. VA Tech Wabag receives order from Reliance Industries

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on RS. Zacks Research upgraded shares of Reliance from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 3rd. Citigroup reissued a "neutral" rating on shares of Reliance in a report on Wednesday, July 29th. Wells Fargo & Company upped their price target on Reliance from $391.00 to $420.00 and gave the company an "equal weight" rating in a research report on Thursday, October 22nd. BMO Capital Markets lifted their price objective on Reliance from $390.00 to $415.00 and gave the stock a "market perform" rating in a research note on Monday, July 27th. Finally, JPMorgan Chase & Co. increased their target price on shares of Reliance from $390.00 to $400.00 and gave the company a "neutral" rating in a research report on Friday, October 9th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $397.43.

Reliance Price Performance

The firm has a market capitalization of $22.25 billion, a P/E ratio of 20.33, a price-to-earnings-growth ratio of 0.89 and a beta of 0.95. The business has a 50-day moving average of $398.07 and a 200 day moving average of $366.28. The company has a current ratio of 4.12, a quick ratio of 2.22 and a debt-to-equity ratio of 0.21.

Reliance (NYSE:RS - Get Free Report) last released its quarterly earnings results on Wednesday, October 21st. The industrial products company reported $8.02 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.83 by $1.19. Reliance had a return on equity of 15.31% and a net margin of 6.38%. The business had revenue of $5.21 billion during the quarter, compared to the consensus estimate of $4.74 billion. During the same quarter in the previous year, the business earned $3.64 EPS. The company's quarterly revenue was up 42.8% on a year-over-year basis. On average, sell-side analysts predict that Reliance, Inc. will post 24.63 earnings per share for the current fiscal year.

Reliance Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 4th. Shareholders of record on Friday, November 20th will be given a dividend of $1.25 per share. This represents a $5.00 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Friday, November 20th. Reliance's dividend payout ratio (DPR) is currently 23.31%.

Insider Buying and Selling at Reliance

In other news, 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 value 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. This represents 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 the SEC website. 0.40% of the stock is currently owned by corporate insiders.

Institutional Trading of Reliance

Several institutional investors have recently added to or reduced their stakes in the business. Choreo LLC raised its stake in shares of Reliance by 6.1% during the third quarter. Choreo LLC now owns 1,502 shares of the industrial products company's stock valued at $578,000 after acquiring an additional 86 shares during the last quarter. Childress Capital Advisors LLC lifted its holdings in Reliance by 4.9% in the third quarter. Childress Capital Advisors LLC now owns 600 shares of the industrial products company's stock worth $231,000 after buying an additional 28 shares during the period. Generali Asset Management SPA SGR boosted its position in Reliance by 739.1% during the 3rd quarter. Generali Asset Management SPA SGR now owns 1,460 shares of the industrial products company's stock valued at $562,000 after acquiring an additional 1,286 shares in the last quarter. Asset Management One Co. Ltd. boosted its position in Reliance by 9.3% during the 3rd quarter. Asset Management One Co. Ltd. now owns 41,580 shares of the industrial products company's stock valued at $16,001,000 after acquiring an additional 3,522 shares in the last quarter. Finally, Park Avenue Securities LLC boosted its position in Reliance by 42.7% during the 3rd quarter. Park Avenue Securities LLC now owns 3,154 shares of the industrial products company's stock valued at $1,214,000 after acquiring an additional 944 shares in the last quarter. 79.26% of the stock is currently owned by hedge funds and other institutional investors.

About Reliance

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.

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