Russel Metals (TSE:RUS) Share Price Crosses Above 200 Day Moving Average - Should You Sell?

Key Points

• Russel Metals shares moved above their 200-day moving average, trading as high as C$69.84 and last changing hands at C$69.60. The breakout came on volume of 181,837 shares.
• Analyst sentiment remains constructive, with several firms raising price targets and the stock carrying an average “Moderate Buy” rating. The consensus price target is C$61.17, below the recent trading price.
• The company reported C$1.30 EPS on revenue of C$1.42 billion in its latest quarter and continues to pay a quarterly dividend of C$0.44, implying a 2.5% yield. Insiders have also been selling shares in recent months.

Russel Metals Inc. (TSE:RUS - Get Free Report)'s share price passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of C$53.68 and traded as high as C$69.84. Russel Metals shares last traded at C$69.60, with a volume of 181,837 shares.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the stock. National Bank Financial increased their target price on shares of Russel Metals from C$52.00 to C$57.00 and gave the stock a "sector perform" rating in a research report on Monday, July 13th. Scotia lifted their price target on shares of Russel Metals from C$54.00 to C$62.00 and gave the company a "sector outperform" rating in a research report on Thursday, May 7th. Raymond James Financial boosted their price target on Russel Metals from C$65.00 to C$70.00 in a research note on Friday, June 5th. BMO Capital Markets increased their price target on Russel Metals from C$51.00 to C$56.00 in a research report on Wednesday, May 6th. Finally, Stifel Nicolaus raised their price objective on Russel Metals from C$49.00 to C$58.50 and gave the stock a "hold" rating in a research note on Thursday, May 7th. Six analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of C$61.17.

Russel Metals Price Performance

The company's 50-day moving average is C$62.47 and its 200-day moving average is C$53.68. The firm has a market cap of C$3.82 billion, a price-to-earnings ratio of 19.55, a price-to-earnings-growth ratio of 0.59 and a beta of 1.21. The company has a current ratio of 2.86, a quick ratio of 1.44 and a debt-to-equity ratio of 29.50.

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

Russel Metals Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 15th were paid a $0.44 dividend. The ex-dividend date was Thursday, May 28th. This represents a $1.76 annualized dividend and a dividend yield of 2.5%. Russel Metals's dividend payout ratio (DPR) is presently 48.31%.

Insiders Place Their Bets

In related news, Director Brian Robie Hedges sold 10,000 shares of the company's stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of C$63.25, for a total transaction of C$632,500.00. Also, insider John Gregory Reid sold 28,935 shares of the firm's stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of C$58.62, for a total transaction of C$1,696,169.70. Following the completion of the sale, the insider owned 306,147 shares in the company, valued at approximately C$17,946,337.14. The trade was a 8.64% decrease in their ownership of the stock. Insiders sold a total of 73,935 shares of company stock worth $4,430,667 over the last 90 days. Corporate insiders own 0.85% of the company's stock.

About Russel Metals

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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