Ryerson (NYSE:RYZ) Hits New 1-Year High - Should You Buy?

Key Points

• Ryerson shares reached a new 52-week high of $32.70, up from a previous close of $31.15, while trading above both its 50-day and 200-day moving averages.
• Analyst sentiment has improved, with recent upgrades from hold or sell ratings; the stock now carries a consensus “Moderate Buy” rating. Ryerson also exceeded quarterly EPS expectations, reporting $0.61 versus the $0.39 consensus estimate.
• The company declared a quarterly dividend of $0.1875, equivalent to $0.75 annually and a 2.2% yield. However, its very low net margin, negative P/E ratio, and payout ratio of -441.18% highlight ongoing profitability concerns.

Shares of Ryerson Holding (NYSE:RYZ - Get Free Report) reached a new 52-week high during mid-day trading on Monday. The company traded as high as $32.70 and last traded at $32.59, with a volume of 26,039 shares. The stock had previously closed at $31.15.

Analyst Ratings Changes

A number of equities analysts have weighed in on RYZ shares. Zacks Research raised shares of Ryerson from a "hold" rating to a "strong-buy" rating in a research note on Monday, October 26th. Wall Street Zen raised Ryerson from a "hold" rating to a "buy" rating in a research note on Saturday, August 1st. Finally, Weiss Ratings upgraded Ryerson from a "sell (d+)" rating to a "hold (c)" rating in a report on Friday. One research analyst has rated the stock with a Strong Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy".

Ryerson Price Performance

The firm has a 50 day moving average price of $25.97 and a 200 day moving average price of $26.43. The company has a quick ratio of 1.02, a current ratio of 2.16 and a debt-to-equity ratio of 0.76. The stock has a market cap of $1.73 billion, a P/E ratio of -196.32 and a beta of 1.50.

Ryerson (NYSE:RYZ - Get Free Report) last released its earnings results on Wednesday, October 28th. The company reported $0.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.39 by $0.22. The firm had revenue of $2.18 billion during the quarter. Ryerson had a return on equity of 3.48% and a net margin of 0.21%. On average, analysts forecast that Ryerson Holding will post 1.35 EPS for the current fiscal year.

Ryerson Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 17th. Shareholders of record on Thursday, December 3rd will be issued a $0.1875 dividend. The ex-dividend date is Thursday, December 3rd. This represents a $0.75 dividend on an annualized basis and a yield of 2.2%. Ryerson's payout ratio is currently -441.18%.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. State of Wyoming boosted its holdings in Ryerson by 109.1% during the third quarter. State of Wyoming now owns 15,726 shares of the company's stock worth $371,000 after buying an additional 8,206 shares in the last quarter. SummerHaven Investment Management LLC increased its holdings in Ryerson by 37.2% in the 3rd quarter. SummerHaven Investment Management LLC now owns 41,447 shares of the company's stock worth $976,000 after acquiring an additional 11,234 shares in the last quarter. State Street Corp acquired a new position in Ryerson during the second quarter worth $54,285,000. The Manufacturers Life Insurance Company acquired a new position in Ryerson during the second quarter worth $298,000. Finally, Engineers Gate Manager LP purchased a new position in Ryerson during the second quarter valued at $1,376,000. 94.81% of the stock is currently owned by hedge funds and other institutional investors.

About Ryerson

Ryerson Holding Corporation is a value-added processor and distributor of industrial metals. The company supplies carbon steel, stainless steel, aluminum, nickel, and copper products to manufacturers and other industrial customers, offering materials in forms such as sheets, plates, coils, bars, tubes, and structural products.

In addition to distributing metals, Ryerson provides processing and fabrication services designed to prepare materials for customer specifications. These services include cutting, slitting, sawing, forming, machining, and other methods that help customers manage their material requirements and supply chains.

Founded in Chicago in 1842 by Joseph T.

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