Reliance Steel & Aluminum Co. (NYSE: RS) stock fell -3.36% on Wednesday to $235.67 against a previous-day closing price of $243.87. With 0.51 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.53 million shares. During the session, the Steel company that operates in wider Basic Materials sector, reached to the highest price of $243.03 whereas the lowest price it dropped to was $234.49. The 52-week range on RS shows that it touched its highest point at $264.42 and its lowest point at $160.29 during that stretch. It currently has a 1-year price target of $271.29. With its current market cap of 14.02 billion, RS has annualized dividend of $4.00 while the current yield stands at 1.70%. Beta for the stock currently stands at 0.88.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of RS was down-trending over the past week, with a drop of -3.26%, but this was down by -2.09% over a month. Three-month performance dropped to -3.07% while six-month performance rose 13.12%. The stock gained 30.88% in the past year, while it has gained 16.41% so far this year. A look at the trailing 12-month EPS for RS yields 27.92 with Next year EPS estimates of 20.38. For the next quarter, that number is 6.61. This implies an EPS growth rate of 36.20% for this year and -10.36% for next year. EPS is expected to decline by -4.30% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 40.20%.
Float and Shares Shorts:
At present, 58.83 million RS shares are outstanding with a float of 58.22 million shares on hand for trading. On Apr 27, 2023, short shares totaled 0.74 million, which was 1.26% higher than short shares on Mar 30, 2023. In addition to Ms. Karla R. Lewis as the firm’s Pres, CEO & Director, Mr. Arthur Ajemyan serves as its CFO & Sr. VP.
Institutional Ownership:
Through their ownership of 83.51% of RS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 7.89% of RS, in contrast to 53.88% held by mutual funds. Shares owned by individuals account for 29.88%. As the largest shareholder in RS with 12.14% of the stake, The Vanguard Group, Inc. holds 7,159,547 shares worth 7,159,547. A second-largest stockholder of RS, BlackRock Fund Advisors, holds 5,055,571 shares, controlling over 8.57% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in RS, holding 2,560,441 shares or 4.34% stake. With a 3.11% stake in RS, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 1,831,466 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.10% of RS stock, is the second-largest Mutual Fund holder. It holds 1,828,082 shares valued at 453.0 million. Vanguard Small Cap Index Fund holds 2.61% of the stake in RS, owning 1,537,841 shares worth 381.08 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, RS reported revenue of $4.68B and operating income of $787.50M. The EBITDA in the recently reported quarter was $837.50M and diluted EPS was $9.15.
Analysts Ratings:
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RS since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With RS analysts setting a high price target of $280.00 and a low target of $262.00, the average target price over the next 12 months is $271.29. Based on these targets, RS could surge 18.81% to reach the target high and rise by 11.17% to reach the target low. Reaching the average price target will result in a growth of 15.11% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded RS stock several times over the past three months with 8 Buys and 4 Sells. In these transactions, 93,229 shares were bought while 85,120 shares were sold. The number of buy transactions has increased to 9 while that of sell transactions has risen to 60 over the past year. The total number of shares bought during that period was 188,562 while 695,377 shares were sold.
