Reliance (NYSE:RS) Reaches New 12-Month High - Still a Buy?

Key Points

• Reliance shares reached a new 52-week high of $431.05 and last traded at $427.18, well above their 50-day and 200-day moving averages. Despite recent analyst upgrades, the consensus rating remains “Hold,” with an average price target of $378.67.
• The company reported a strong quarterly performance, posting EPS of $6.27 versus estimates of $5.47 and revenue of $4.63 billion, up 26.5% year over year. Reliance also issued third-quarter EPS guidance of $6.40–$6.60.
• Reliance declared a quarterly dividend of $1.25, equivalent to a 1.2% yield and a 29.07% payout ratio. Meanwhile, two senior insiders sold shares, while institutional investors own 79.26% of the company.

Reliance, Inc. (NYSE:RS - Get Free Report) hit a new 52-week high during trading on Tuesday . The company traded as high as $431.05 and last traded at $427.18, with a volume of 316394 shares. The stock had previously closed at $423.88.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on RS shares. Seaport Research Partners lifted their target price on Reliance from $340.00 to $390.00 and gave the company a "buy" rating in a research note on Tuesday, April 28th. Wells Fargo & Company increased their price target on shares of Reliance from $372.00 to $398.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 23rd. Zacks Research raised shares of Reliance from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 3rd. JPMorgan Chase & Co. lowered their price objective on shares of Reliance from $378.00 to $376.00 and set a "neutral" rating on the stock in a research report on Wednesday, July 15th. Finally, Weiss Ratings upgraded shares of Reliance from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, May 18th. 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.com, the stock currently has an average rating of "Hold" and an average price target of $378.67.

Reliance Trading Up 0.8%

The firm has a market capitalization of $21.81 billion, a price-to-earnings ratio of 24.84, a price-to-earnings-growth ratio of 1.09 and a beta of 0.96. The company has a current ratio of 4.30, a quick ratio of 2.27 and a debt-to-equity ratio of 0.22. The company has a fifty day moving average price of $396.36 and a 200-day moving average price of $355.52.

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

Reliance Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be paid a $1.25 dividend. This represents a $5.00 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend is Friday, August 14th. Reliance's payout ratio is presently 29.07%.

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 shares were sold at an average price of $410.11, for a total value of $902,242.00. Following the completion of the sale, 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 sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, SVP William A. Smith II sold 2,353 shares of the stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $414.21, for a total transaction of $974,636.13. Following the transaction, the senior vice president directly owned 19,394 shares in the company, valued at $8,033,188.74. The trade was a 10.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.40% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the stock. Denali Advisors LLC bought a new stake in Reliance during the second quarter worth approximately $637,000. NewEdge Wealth LLC bought a new position in shares of Reliance in the second quarter valued at approximately $231,000. Chancellor Financial Group WB LP bought a new position in shares of Reliance in the second quarter valued at approximately $747,000. Danske Bank A S acquired a new stake in shares of Reliance in the second quarter worth $25,537,000. Finally, Wealthfront Advisers LLC acquired a new stake in shares of Reliance in the second quarter worth $208,000. 79.26% of the stock is owned by institutional investors.

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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