Reliance (NYSE:RS) Trading Up 6% on Better-Than-Expected Earnings

Reliance, Inc. (NYSE:RS)’s share price rose 6% during trading on Thursday following a better than expected earnings announcement. The company traded as high as $413.96 and last traded at $409.2840. Approximately 92,942 shares changed hands during mid-day trading, a decline of 74% from the average daily volume of 352,614 shares. The stock had previously closed at $386.21.

The industrial products company reported $6.27 EPS for the quarter, beating analysts’ consensus estimates of $5.47 by $0.80. Reliance had a return on equity of 12.51% and a net margin of 5.65%.The company had revenue of $4.63 billion during the quarter, compared to analysts’ expectations of $4.26 billion. During the same quarter last year, the business posted $4.43 EPS. The firm’s revenue for the quarter was up 26.5% compared to the same quarter last year. Reliance has set its Q3 2026 guidance at 6.400-6.600 EPS.

Reliance Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be given a dividend of $1.25 per share. The ex-dividend date of this dividend is Friday, August 14th. This represents a $5.00 annualized dividend and a yield of 1.2%. Reliance’s dividend payout ratio (DPR) is currently 29.07%.

Reliance News Summary

Here are the key news stories impacting Reliance this week:

• Positive Sentiment: Reliance reported Q2 earnings per share of $6.27, ahead of estimates and above management’s prior guidance, while revenue rose 26.5% year over year to $4.63 billion. Article Title
• Positive Sentiment: The company said record quarterly tons sold, stronger customer activity, and firm pricing supported results, with the U.S. border wall project contributing more than expected to earnings. Article Title
• Positive Sentiment: Management issued upbeat Q3 guidance of $6.40 to $6.60 per share, signaling continued momentum after the strong quarter. Article Title
• Neutral Sentiment: Wells Fargo raised its price target on Reliance to $398 from $372 but kept an “equal weight” rating, suggesting improved expectations without a major change in stance. Article Title
• Neutral Sentiment: The company also announced a quarterly dividend of $1.25 per share, reinforcing shareholder returns but not changing the core operating story. Article Title

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on RS. BMO Capital Markets upped their target price on shares of Reliance from $320.00 to $350.00 and gave the stock a “market perform” rating in a research report on Monday, April 27th. The Goldman Sachs Group assumed coverage on shares of Reliance in a research report on Wednesday, April 1st. They set a “neutral” rating and a $300.00 price target for the company. JPMorgan Chase & Co. dropped their price objective on shares of Reliance from $378.00 to $376.00 and set a “neutral” rating on the stock in a research note on Wednesday, July 15th. Wells Fargo & Company upped their price objective on shares of Reliance from $372.00 to $398.00 and gave the stock an “equal weight” rating in a report on Thursday. Finally, Seaport Research Partners raised their target price on shares of Reliance from $340.00 to $390.00 and gave the company a “buy” rating in a research note on Tuesday, April 28th. Two equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Reliance presently has an average rating of “Hold” and an average price target of $367.83.

Insider Buying and Selling at Reliance

In other news, CFO Arthur Ajemyan sold 3,500 shares of the firm’s stock in a transaction on Monday, April 27th. The stock was sold at an average price of $358.12, for a total transaction of $1,253,420.00. Following the completion of the transaction, the chief financial officer directly owned 16,840 shares in the company, valued at $6,030,740.80. This trade represents a 17.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.40% of the stock is owned by insiders.

Institutional Trading of Reliance

Institutional investors have recently bought and sold shares of the company. Costello Asset Management INC purchased a new position in Reliance in the first quarter worth about $30,000. Brown Brothers Harriman & Co. lifted its stake in shares of Reliance by 86.2% in the fourth quarter. Brown Brothers Harriman & Co. now owns 108 shares of the industrial products company’s stock worth $31,000 after buying an additional 50 shares in the last quarter. Greenline Wealth Management LLC purchased a new stake in shares of Reliance during the fourth quarter valued at approximately $32,000. Quarry LP purchased a new stake in shares of Reliance during the third quarter valued at approximately $32,000. Finally, Parkside Financial Bank & Trust increased its position in shares of Reliance by 87.3% during the fourth quarter. Parkside Financial Bank & Trust now owns 118 shares of the industrial products company’s stock valued at $34,000 after acquiring an additional 55 shares in the last quarter. 79.26% of the stock is owned by hedge funds and other institutional investors.

Reliance Stock Performance

The company has a market capitalization of $20.83 billion, a PE ratio of 23.72, a price-to-earnings-growth ratio of 1.22 and a beta of 0.97. The business’s fifty day moving average is $386.93 and its two-hundred day moving average is $347.45. The company has a current ratio of 4.30, a quick ratio of 2.24 and a debt-to-equity ratio of 0.22.

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.