Reliance (NYSE:RS) Hits New 1-Year High – Still a Buy?

Reliance, Inc. (NYSE:RS)’s share price hit a new 52-week high on Thursday . The company traded as high as $348.36 and last traded at $342.3740, with a volume of 22308 shares changing hands. The stock had previously closed at $346.73.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on RS. Weiss Ratings reiterated a “hold (c)” rating on shares of Reliance in a research note on Monday, December 29th. BMO Capital Markets dropped their price target on Reliance from $340.00 to $315.00 and set an “outperform” rating on the stock in a research report on Friday, October 24th. KeyCorp restated an “overweight” rating on shares of Reliance in a research report on Wednesday, January 7th. JPMorgan Chase & Co. cut their target price on shares of Reliance from $345.00 to $340.00 and set an “overweight” rating on the stock in a report on Friday, December 5th. Finally, Wells Fargo & Company increased their target price on Reliance from $284.00 to $287.00 and gave the stock an “equal weight” rating in a research report on Friday, November 14th. Three research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $317.25.

Reliance Price Performance

The company has a debt-to-equity ratio of 0.19, a current ratio of 4.43 and a quick ratio of 2.08. The stock has a market capitalization of $18.07 billion, a price-to-earnings ratio of 25.24, a PEG ratio of 2.01 and a beta of 0.92. The stock’s 50 day simple moving average is $303.69 and its 200-day simple moving average is $291.90.

Insider Transactions at Reliance

In other news, COO Stephen Paul Koch sold 3,066 shares of Reliance stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $283.56, for a total value of $869,394.96. Following the transaction, the chief operating officer owned 14,021 shares of the company’s stock, valued at $3,975,794.76. This trade represents a 17.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Karla R. Lewis sold 5,809 shares of the firm’s stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $283.50, for a total value of $1,646,851.50. Following the completion of the sale, the chief executive officer directly owned 84,421 shares in the company, valued at approximately $23,933,353.50. This represents a 6.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.35% of the stock is owned by insiders.

Institutional Investors Weigh In On Reliance

A number of institutional investors have recently added to or reduced their stakes in RS. Private Trust Co. NA grew its stake in shares of Reliance by 417.6% during the second quarter. Private Trust Co. NA now owns 88 shares of the industrial products company’s stock worth $28,000 after purchasing an additional 71 shares during the period. Elevation Wealth Partners LLC acquired a new stake in shares of Reliance in the 4th quarter valued at approximately $28,000. Quarry LP bought a new position in Reliance during the 3rd quarter worth approximately $32,000. Guerra Advisors Inc bought a new position in Reliance during the 3rd quarter worth approximately $34,000. Finally, Root Financial Partners LLC acquired a new position in Reliance during the third quarter valued at approximately $38,000. 79.26% of the stock is owned by institutional investors and hedge funds.

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.