Reliance Steel & Aluminum (RS) Rating Lowered to Hold at Zacks Investment Research

Zacks Investment Research cut shares of Reliance Steel & Aluminum (NYSE:RS) from a buy rating to a hold rating in a report issued on Tuesday.

According to Zacks, “Reliance Steel has outperformed the industry it belongs to over the past six months. Reliance Steel is seeing continued momentum across aerospace and automotive markets. Aerospace remains a strong market as manifested by solid demand. Reliance Steel should also benefit from its aggressive acquisition strategy, broad and diversified product base and wide geographic footprint. Higher metal pricing is also expected to support its margins in first-quarter 2018. However, Reliance Steel faces low demand across heavy industry end-markets. The company is also exposed to pricing headwinds. The steel industry is also not out of the woods yet.”

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RS has been the topic of a number of other reports. Bank of America set a $97.00 price target on shares of Reliance Steel & Aluminum and gave the stock a buy rating in a report on Monday, January 8th. Clarkson Capital reaffirmed a buy rating on shares of Reliance Steel & Aluminum in a report on Wednesday, November 15th. Longbow Research raised shares of Reliance Steel & Aluminum from a neutral rating to a buy rating in a report on Wednesday, February 7th. ValuEngine raised shares of Reliance Steel & Aluminum from a hold rating to a buy rating in a report on Thursday, March 1st. Finally, Cowen increased their price objective on shares of Reliance Steel & Aluminum from $101.00 to $107.00 and gave the company an outperform rating in a report on Friday, February 16th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and eight have given a buy rating to the stock. The stock currently has a consensus rating of Buy and an average target price of $86.33.

Shares of Reliance Steel & Aluminum (RS) opened at $93.29 on Tuesday. Reliance Steel & Aluminum has a twelve month low of $68.46 and a twelve month high of $95.97. The stock has a market cap of $6,800.00, a price-to-earnings ratio of 16.90, a P/E/G ratio of 1.52 and a beta of 1.17. The company has a current ratio of 4.34, a quick ratio of 1.88 and a debt-to-equity ratio of 0.38.

Reliance Steel & Aluminum (NYSE:RS) last announced its quarterly earnings results on Thursday, February 15th. The industrial products company reported $1.22 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.00 by $0.22. Reliance Steel & Aluminum had a net margin of 6.31% and a return on equity of 9.00%. The firm had revenue of $2.38 billion for the quarter. During the same period last year, the company posted $0.84 earnings per share. The business’s quarterly revenue was up 15.3% on a year-over-year basis. analysts anticipate that Reliance Steel & Aluminum will post 6.76 EPS for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 30th. Shareholders of record on Friday, March 16th will be issued a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 2.14%. This is an increase from Reliance Steel & Aluminum’s previous quarterly dividend of $0.45. The ex-dividend date is Thursday, March 15th. Reliance Steel & Aluminum’s dividend payout ratio (DPR) is presently 32.61%.

In other news, CEO Gregg J. Mollins sold 8,990 shares of the stock in a transaction dated Tuesday, February 20th. The shares were sold at an average price of $94.89, for a total value of $853,061.10. Following the completion of the sale, the chief executive officer now directly owns 201,895 shares in the company, valued at $19,157,816.55. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Gregg J. Mollins sold 30,332 shares of the stock in a transaction dated Tuesday, March 6th. The shares were sold at an average price of $92.83, for a total transaction of $2,815,719.56. Following the completion of the sale, the insider now owns 201,895 shares of the company’s stock, valued at $18,741,912.85. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 58,322 shares of company stock worth $5,431,021. Insiders own 3.18% of the company’s stock.

Several hedge funds and other institutional investors have recently modified their holdings of the company. Victory Capital Management Inc. raised its position in shares of Reliance Steel & Aluminum by 14.6% in the fourth quarter. Victory Capital Management Inc. now owns 3,932,819 shares of the industrial products company’s stock valued at $337,396,000 after buying an additional 502,007 shares during the last quarter. Franklin Resources Inc. raised its position in shares of Reliance Steel & Aluminum by 151.5% in the fourth quarter. Franklin Resources Inc. now owns 1,115,100 shares of the industrial products company’s stock valued at $95,664,000 after buying an additional 671,700 shares during the last quarter. LSV Asset Management raised its position in shares of Reliance Steel & Aluminum by 1.8% in the fourth quarter. LSV Asset Management now owns 861,718 shares of the industrial products company’s stock valued at $73,926,000 after buying an additional 15,640 shares during the last quarter. Prudential Financial Inc. raised its position in shares of Reliance Steel & Aluminum by 2.6% in the third quarter. Prudential Financial Inc. now owns 771,216 shares of the industrial products company’s stock valued at $58,744,000 after buying an additional 19,560 shares during the last quarter. Finally, Schroder Investment Management Group raised its position in shares of Reliance Steel & Aluminum by 1.7% in the fourth quarter. Schroder Investment Management Group now owns 485,301 shares of the industrial products company’s stock valued at $41,634,000 after buying an additional 8,014 shares during the last quarter. Institutional investors and hedge funds own 82.82% of the company’s stock.

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Reliance Steel & Aluminum Company Profile

Reliance Steel & Aluminum Co is a metals service center company in North America (the United States and Canada). As of December 31, 2016, the Company’s network of metals service centers operated over 300 locations in 39 states in the United States and in 12 other countries (Australia, Belgium, Canada, China, France, Malaysia, Mexico, Singapore, South Korea, Turkey, the United Arab Emirates and the United Kingdom).

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