Reliance (NYSE:RS) Downgraded to Underperform Rating by Bank of America

Key Points

• Bank of America downgraded Reliance (NYSE:RS) from "neutral" to "underperform" and set a $365 price target, implying only about a 1.9% upside from the prior close.
• Reliance beat Q1 estimates with $5.16 EPS (vs. $4.63) and $4.03B revenue (vs. $3.89B) and set Q2 guidance of $5.150–$5.350, yet the analyst consensus remains a Hold with a $344.67 average price target and mixed ratings (1 Buy, 6 Hold, 1 Sell).
• Insider selling has been notable—executives sold 34,175 shares (~$11.0M) over the last three months—while institutional investors own roughly 79.26% of the stock.

Reliance (NYSE:RS - Get Free Report) was downgraded by stock analysts at Bank of America from a "neutral" rating to an "underperform" rating in a research report issued on Thursday. They presently have a $365.00 price target on the industrial products company's stock. Bank of America's price target indicates a potential upside of 1.92% from the stock's previous close.

Several other analysts have also weighed in on the company. Seaport Research Partners raised their price objective on Reliance from $340.00 to $390.00 and gave the company a "buy" rating in a research note on Tuesday. BMO Capital Markets raised their price target on shares of Reliance from $320.00 to $350.00 and gave the company a "market perform" rating in a research note on Monday. Wells Fargo & Company lifted their price target on shares of Reliance from $323.00 to $330.00 and gave the company an "equal weight" rating in a report on Wednesday, April 15th. The Goldman Sachs Group began coverage on shares of Reliance in a report on Wednesday, April 1st. They set a "neutral" rating and a $300.00 price target on the stock. Finally, JPMorgan Chase & Co. upped their price objective on shares of Reliance from $340.00 to $345.00 and gave the stock a "neutral" rating in a research report on Friday, April 24th. One analyst has rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Reliance has a consensus rating of "Hold" and a consensus price target of $344.67.

Reliance Stock Performance

NYSE RS opened at $358.11 on Thursday. The firm's 50 day simple moving average is $315.77 and its 200 day simple moving average is $304.38. The firm has a market capitalization of $18.53 billion, a price-to-earnings ratio of 23.27, a P/E/G ratio of 1.29 and a beta of 0.88. The company has a current ratio of 4.39, a quick ratio of 2.24 and a debt-to-equity ratio of 0.24. Reliance has a 1 year low of $260.31 and a 1 year high of $365.59.

Reliance (NYSE:RS - Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The industrial products company reported $5.16 EPS for the quarter, beating the consensus estimate of $4.63 by $0.53. The business had revenue of $4.03 billion during the quarter, compared to the consensus estimate of $3.89 billion. Reliance had a net margin of 5.42% and a return on equity of 11.37%. The company's revenue was up 15.1% on a year-over-year basis. During the same period in the previous year, the business earned $3.77 earnings per share. Reliance has set its Q2 2026 guidance at 5.150-5.350 EPS. As a group, research analysts expect that Reliance will post 17.99 earnings per share for the current fiscal year.

Insider Transactions at Reliance

In other news, SVP William A. Smith II sold 6,615 shares of the company's stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $298.61, for a total value of $1,975,305.15. Following the completion of the transaction, the senior vice president owned 21,747 shares of the company's stock, valued at $6,493,871.67. This represents a 23.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, COO Stephen Paul Koch sold 24,060 shares of the firm's stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $321.62, for a total transaction of $7,738,177.20. Following the completion of the transaction, the chief operating officer owned 14,021 shares of the company's stock, valued at approximately $4,509,434.02. This trade represents a 63.18% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 34,175 shares of company stock worth $10,966,902. Insiders own 0.40% of the company's stock.

Institutional Trading of Reliance

Several institutional investors have recently modified their holdings of the business. Norges Bank bought a new stake in shares of Reliance in the 4th quarter valued at about $207,691,000. Alliancebernstein L.P. boosted its holdings in Reliance by 899.4% in the third quarter. Alliancebernstein L.P. now owns 733,528 shares of the industrial products company's stock valued at $205,997,000 after acquiring an additional 660,128 shares during the last quarter. Boston Partners increased its position in Reliance by 27.5% during the 3rd quarter. Boston Partners now owns 2,247,603 shares of the industrial products company's stock valued at $631,224,000 after purchasing an additional 484,286 shares during the period. Wellington Management Group LLP raised its holdings in Reliance by 25.2% during 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 purchasing an additional 343,598 shares during the last quarter. Finally, Corient Private Wealth LLC raised its holdings in Reliance by 1,019.0% during the 4th quarter. Corient Private Wealth LLC now owns 341,874 shares of the industrial products company's stock worth $98,758,000 after purchasing an additional 311,323 shares during the last quarter. Institutional investors own 79.26% 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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