Reliance Steel & Aluminum (NYSE:RS) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Friday, Zacks.com reports. They presently have a $152.00 price target on the industrial products company’s stock. Zacks Investment Research‘s price target points to a potential upside of 6.38% from the stock’s current price.
According to Zacks, “Earnings estimates for Reliance Steel for the third quarter have been going up over the past month. It should benefit from higher prices, broad and diversified product base and wide geographic footprint. The company’s core business strategy is to enhance operating results by strategic acquisitions. Reliance Steel is also seeing a strong rebound in non-residential construction, its largest market. Reliance Steel’s investments in new processing capabilities will also improve the service offerings to its customers. The company also remains committed to offer incremental returns to its shareholders leveraging strong cash flows. However, Reliance Steel is witnessing weakness across automotive and commercial aerospace markets. Supply chain disruptions are also impacting its shipments. High debt level is another concern.”
Other analysts also recently issued reports about the stock. Deutsche Bank Aktiengesellschaft raised shares of Reliance Steel & Aluminum to a “hold” rating and upped their price objective for the stock from $165.00 to $175.00 in a report on Wednesday, September 15th. They noted that the move was a valuation call. JPMorgan Chase & Co. started coverage on shares of Reliance Steel & Aluminum in a report on Wednesday, June 16th. They issued an “overweight” rating and a $181.00 price target for the company. Citigroup upgraded shares of Reliance Steel & Aluminum from a “neutral” rating to a “buy” rating and boosted their price objective for the stock from $160.00 to $200.00 in a report on Monday, July 26th. Seaport Global Securities assumed coverage on shares of Reliance Steel & Aluminum in a research note on Monday, August 23rd. They issued a “buy” rating and a $165.00 target price for the company. Finally, Seaport Res Ptn restated a “buy” rating on shares of Reliance Steel & Aluminum in a research note on Monday, August 23rd. Three investment analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus target price of $163.63.
Reliance Steel & Aluminum (NYSE:RS) last posted its quarterly earnings data on Wednesday, July 21st. The industrial products company reported $5.06 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $4.89 by $0.17. The business had revenue of $3.42 billion during the quarter, compared to the consensus estimate of $3.19 billion. Reliance Steel & Aluminum had a net margin of 7.86% and a return on equity of 15.96%. Reliance Steel & Aluminum’s quarterly revenue was up 69.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.36 EPS. As a group, research analysts predict that Reliance Steel & Aluminum will post 18.01 earnings per share for the current fiscal year.
In other news, CEO James Donald Hoffman sold 5,000 shares of the company’s stock in a transaction that occurred on Tuesday, July 6th. The stock was sold at an average price of $151.57, for a total value of $757,850.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Insiders own 3.43% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in RS. Burleson & Company LLC bought a new stake in shares of Reliance Steel & Aluminum in the 1st quarter valued at approximately $25,000. Ameritas Investment Company LLC bought a new stake in Reliance Steel & Aluminum during the 1st quarter worth approximately $25,000. Northwestern Mutual Wealth Management Co. grew its position in Reliance Steel & Aluminum by 126.7% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 170 shares of the industrial products company’s stock worth $26,000 after acquiring an additional 95 shares during the last quarter. Fifth Third Bancorp grew its position in Reliance Steel & Aluminum by 121.4% during the 1st quarter. Fifth Third Bancorp now owns 248 shares of the industrial products company’s stock worth $38,000 after acquiring an additional 136 shares during the last quarter. Finally, Exchange Traded Concepts LLC grew its position in Reliance Steel & Aluminum by 786.0% during the 2nd quarter. Exchange Traded Concepts LLC now owns 381 shares of the industrial products company’s stock worth $57,000 after acquiring an additional 338 shares during the last quarter. Institutional investors own 81.66% of the company’s stock.
About Reliance Steel & Aluminum
Reliance Steel & Aluminum Co engages in the provision of metals processing services and distribution of metal products. It offers alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium and specialty steel products. The company was founded by Thomas J. Neilan on February 3, 1939 and is headquartered in Los Angeles, CA.
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