Reliance (NYSE:RS) Price Target Cut to $391.00 by Analysts at Wells Fargo & Company

Key Points

• Wells Fargo lowered Reliance’s price target to $391 from $398 while maintaining an “equal weight” rating, implying roughly 0.5% upside. Analysts overall rate the stock “Hold,” with a consensus target of $377.50.
• Reliance exceeded quarterly expectations, reporting $6.27 in EPS versus the $5.47 consensus and revenue of $4.63 billion, up 26.5% year over year. Management guided for third-quarter EPS of $6.40–$6.60.
• The shares traded at $389.07, with a market capitalization of approximately $19.87 billion; institutional investors own 79.26% of the stock, while company insiders recently reported share sales.

Reliance (NYSE:RS - Get Free Report) had its price objective decreased by research analysts at Wells Fargo & Company from $398.00 to $391.00 in a research report issued on Monday,Benzinga reports. The brokerage currently has an "equal weight" rating on the industrial products company's stock. Wells Fargo & Company's price objective suggests a potential upside of 0.50% from the company's current price.

A number of other equities research analysts have also recently commented on the company. Zacks Research upgraded Reliance from a "hold" rating to a "strong-buy" rating in a report on Monday, August 3rd. Bank of America cut Reliance from a "neutral" rating to an "underperform" rating and set a $365.00 price target for the company. in a report on Thursday, April 30th. JPMorgan Chase & Co. reduced their price objective on Reliance from $378.00 to $376.00 and set a "neutral" rating on the stock in a research report on Wednesday, July 15th. Citigroup reaffirmed a "neutral" rating on shares of Reliance in a research note on Wednesday, July 29th. Finally, 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 report on Monday, July 27th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $377.50.

Reliance Price Performance

RS traded up $1.18 during midday trading on Monday, reaching $389.07. 60,037 shares of the company's stock were exchanged, compared to its average volume of 353,789. The company has a debt-to-equity ratio of 0.22, a current ratio of 4.30 and a quick ratio of 2.27. The stock has a market capitalization of $19.87 billion, a PE ratio of 22.67, a P/E/G ratio of 1.00 and a beta of 0.96. The business's 50-day moving average price is $398.80 and its 200 day moving average price is $360.86. Reliance has a 1-year low of $260.31 and a 1-year high of $433.02.

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

Insiders Place Their Bets

In related news, CFO Arthur Ajemyan sold 2,200 shares of the company's stock in a transaction on Friday, July 31st. The stock was sold at an average price of $410.11, for a total value of $902,242.00. Following the completion of the transaction, the chief financial officer directly owned 14,640 shares in the company, 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. Also, SVP William A. Smith II sold 2,353 shares of the stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $414.21, for a total value of $974,636.13. Following the transaction, the senior vice president owned 19,394 shares in the company, valued at $8,033,188.74. This trade represents a 10.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.40% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Costello Asset Management INC purchased a new stake in Reliance in the first quarter valued at approximately $30,000. N.E.W. Advisory Services LLC purchased a new position in Reliance during the second quarter worth approximately $37,000. Brown Brothers Harriman & Co. raised its stake in Reliance by 86.2% during the fourth quarter. Brown Brothers Harriman & Co. now owns 108 shares of the industrial products company's stock worth $31,000 after purchasing an additional 50 shares during the period. Compass Financial Management LLC acquired a new position in shares of Reliance in the 2nd quarter valued at $46,000. Finally, Osterweis Capital Management Inc. acquired a new position in shares of Reliance in the 2nd quarter valued at $41,000. Institutional investors and hedge funds 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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