Reliance (NYSE:RS) Releases Earnings Results

Reliance (NYSE:RS) released its quarterly earnings results on Wednesday. The industrial products company reported $5.16 earnings per share for the quarter, topping the consensus estimate of $4.63 by $0.53, Zacks reports. Reliance had a net margin of 5.17% and a return on equity of 10.45%. The firm had revenue of $4.03 billion during the quarter, compared to the consensus estimate of $3.89 billion.

Reliance Price Performance

RS stock traded up $14.61 during mid-day trading on Wednesday, reaching $350.60. The company’s stock had a trading volume of 618,691 shares, compared to its average volume of 352,808. The stock has a market cap of $18.14 billion, a PE ratio of 25.10, a P/E/G ratio of 1.27 and a beta of 0.88. The company has a current ratio of 4.88, a quick ratio of 2.30 and a debt-to-equity ratio of 0.20. Reliance has a fifty-two week low of $260.31 and a fifty-two week high of $365.59. The company’s 50 day moving average is $314.80 and its two-hundred day moving average is $301.35.

Reliance Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, March 20th. Shareholders of record on Friday, March 6th were issued a $1.25 dividend. This represents a $5.00 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date was Friday, March 6th. This is a positive change from Reliance’s previous quarterly dividend of $1.20. Reliance’s payout ratio is currently 35.79%.

Wall Street Analyst Weigh In

Several research firms recently weighed in on RS. JPMorgan Chase & Co. upped their price target on shares of Reliance from $330.00 to $340.00 and gave the stock a “neutral” rating in a research report on Tuesday, April 14th. BMO Capital Markets downgraded shares of Reliance from an “outperform” rating to a “market perform” rating and reduced their price target for the stock from $340.00 to $320.00 in a research report on Friday, February 20th. Wall Street Zen upgraded shares of Reliance from a “hold” rating to a “buy” rating in a research report on Saturday, April 11th. KeyCorp began coverage on shares of Reliance in a research report on Wednesday, March 25th. They set an “overweight” rating and a $341.00 price target for the company. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Reliance in a research report on Monday, December 29th. One analyst has rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $326.20.

Insider Transactions at Reliance

In other Reliance news, COO Stephen Paul Koch sold 24,060 shares of the stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $321.62, for a total value of $7,738,177.20. Following the completion of the sale, the chief operating officer owned 14,021 shares in the company, valued at approximately $4,509,434.02. This represents a 63.18% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP William A. Smith II sold 6,615 shares of the stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $298.61, for a total transaction of $1,975,305.15. Following the completion of the sale, the senior vice president owned 21,747 shares of the company’s stock, valued at approximately $6,493,871.67. The trade was a 23.32% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.40% of the stock is currently owned by corporate insiders.

Institutional Trading of Reliance

A number of hedge funds have recently bought and sold shares of RS. Brown Brothers Harriman & Co. raised its holdings in Reliance by 86.2% in the 4th quarter. Brown Brothers Harriman & Co. now owns 108 shares of the industrial products company’s stock valued at $31,000 after acquiring an additional 50 shares during the last quarter. Quarry LP purchased a new stake in shares of Reliance in the 3rd quarter valued at approximately $32,000. Greenline Wealth Management LLC purchased a new stake in shares of Reliance in the 4th quarter valued at approximately $32,000. Parkside Financial Bank & Trust grew its stake in shares of Reliance by 87.3% in the 4th quarter. Parkside Financial Bank & Trust now owns 118 shares of the industrial products company’s stock valued at $34,000 after buying an additional 55 shares during the period. Finally, Advisory Services Network LLC purchased a new stake in shares of Reliance in the 3rd quarter valued at approximately $39,000. Institutional investors and hedge funds own 79.26% of the company’s stock.

About Reliance

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.