Russel Metals (TSE:RUS) Reaches New 1-Year High - Should You Buy?

Key Points

• Russel Metals shares hit a new 52-week high, trading as high as C$67.18 and closing near that level after rising 1.7% on the day.
• Analysts have turned more optimistic, with several firms raising price targets; the consensus rating is now Moderate Buy with an average target of C$61.17.
• The company recently reported C$1.30 EPS on C$1.42 billion in revenue and pays a 2.6% dividend yield, though insider selling has been notable over the past 90 days.

Russel Metals Inc. (TSE:RUS - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as C$67.18 and last traded at C$66.54, with a volume of 158044 shares. The stock had previously closed at C$65.41.

Analyst Ratings Changes

A number of research analysts have commented on RUS shares. Royal Bank Of Canada upped their target price on shares of Russel Metals from C$63.00 to C$68.00 and gave the company an "outperform" rating in a research report on Tuesday, June 30th. Raymond James Financial increased their price objective on shares of Russel Metals from C$65.00 to C$70.00 in a research report on Friday, June 5th. BMO Capital Markets lifted their target price on shares of Russel Metals from C$51.00 to C$56.00 in a report on Wednesday, May 6th. National Bank Financial boosted their target price on Russel Metals from C$52.00 to C$57.00 and gave the company a "sector perform" rating in a research report on Monday. Finally, Stifel Nicolaus lifted their price objective on Russel Metals from C$49.00 to C$58.50 and gave the company a "hold" rating in a research note on Thursday, May 7th. Six analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of C$61.17.

Russel Metals Stock Up 1.7%

The company has a quick ratio of 1.44, a current ratio of 2.86 and a debt-to-equity ratio of 29.50. The stock has a market cap of C$3.65 billion, a price-to-earnings ratio of 18.69, a PEG ratio of 0.59 and a beta of 1.21. The business's fifty day moving average is C$61.05 and its two-hundred day moving average is C$52.62.

Russel Metals (TSE:RUS - Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported C$1.30 earnings per share for the quarter. Russel Metals had a net margin of 4.04% and a return on equity of 12.22%. The firm had revenue of C$1.42 billion for the quarter.

Russel Metals Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 15th were issued a $0.44 dividend. This represents a $1.76 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date was Thursday, May 28th. Russel Metals's dividend payout ratio (DPR) is presently 48.31%.

Insider Activity

In related news, Director Brian Robie Hedges sold 10,000 shares of the stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of C$63.25, for a total value of C$632,500.00. Also, Director James Francis Dinning sold 2,500 shares of the stock in a transaction on Friday, May 29th. The shares were sold at an average price of C$62.10, for a total value of C$155,250.00. Following the completion of the transaction, the director directly owned 19,250 shares in the company, valued at C$1,195,425. This trade represents a 11.49% decrease in their position. Insiders sold a total of 73,935 shares of company stock valued at $4,430,667 in the last 90 days. Company insiders own 0.85% of the company's stock.

Russel Metals Company Profile

Russel Metals is one of the largest metals distribution companies in North America with a growing focus on value-added processing. It carries on business in three segments: metals service centers, energy field stores and steel distributors. Its network of metals service centers carries an extensive line of metal products in a wide range of sizes, shapes and specifications, including carbon hot rolled and cold finished steel, pipe and tubular products, stainless steel, aluminum and other non-ferrous specialty metals.

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