Analyzing Reliance Steel & Aluminum Co. (RS) From Top to Bottom,

On Monday, shares of Reliance Steel & Aluminum Co. (NYSE:RS) marked $92.89 per share versus a previous $90.41 closing price. With having a 2.74% gain, an insight into the fundamental values of Reliance Steel & Aluminum Co., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. RS showed a fall of -22.44% within its YTD performance, with highs and lows between $70.57 – $122.17 during the period of 52 weeks, compared to the simple moving average of -10.39% in the period of the last 200 days.

KeyBanc Capital Markets equity researchers changed the status of Reliance Steel & Aluminum Co. (NYSE: RS) shares from “Overweight” to a “Sector Weight” rating in the report published on May 13th, 2020. Other analysts, including Goldman, also published their reports on RS shares. Goldman repeated the rating from the previous report, marking RS under “Buy” rating, in the report published on March 30th, 2020. Additionally, RS shares got another “Market Perform” rating from Cowen, setting a target price of $122 on the company’s shares, according to the report published in January 21st, 2020. On October 30th, 2019, Deutsche Bank Downgrade an Hold rating and increased its price target from $105 to $110. On the other hand, Cowen Reiterated the “Outperform” rating for RS shares, as published in the report on October 29th, 2019. Longbow seems to be going bullish on the price of RS shares, based on the price prediction for RS. Another “Neutral” rating came from BofA/Merrill, providing a prediction for price target according to the report published in May 31st, 2019.

Reliance Steel & Aluminum Co. (RS) Analysis

The present dividend yield for RS owners is set at 0.03, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with Reliance Steel & Aluminum Co., the company needs to provide a healthy cash flow, currently at the value of 6.35. In addition, the growth of sales from quarter to quarter is recording -13.00%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Reliance Steel & Aluminum Co. (RS) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 11.40% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 2.00 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while RS is currently recording an average of 473.87K in volumes. The volatility of the stock on monthly basis is set at 3.19%, while the weekly volatility levels are marked at 2.98%with -3.49% of loss in the last seven days. Additionally, long-term investors are predicting the target price of $93.00, indicating growth from the present price of $92.89, which can represent yet another valuable research and analysis points that can help you decide whether to invest in RS or pass.

What to Look for When Analyzing Reliance Steel & Aluminum Co. Shares?

Reliance Steel & Aluminum Co. (RS) is based in the USA and it represents one of the well-known company operating with Basic Materials sector. If you wish to compare RS shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 10.99 for Reliance Steel & Aluminum Co., while the value 13.27 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 8.46 is supported by the yearly EPS growth of 17.60%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 0.80%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 87.10% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in RS Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in RS in the recent period. That is how The Vanguard Group, Inc. now has an increase position in RS by 2.53% in the first quarter, owning 7.36 million shares of RS stocks, with the value of $713.82 million after the purchase of an additional 181,913 shares during the last quarter. In the meanwhile, Wellington Management Co. LLP also increased their stake in RS shares changed 10.58% in the first quarter, which means that the company now owns 2.65 million shares of company, all valued at $257.48 million after the acquisition of additional 254,059 shares during the last quarter.

Victory Capital Management, Inc. acquired a new position in Reliance Steel & Aluminum Co. during the first quarter, with the value of $232.36 million, and Geode Capital Management LLC increased their stake in the company’s shares by 1.29% in the first quarter, now owning 14,761 shares valued at $112.77 million after the acquisition of the additional 1.16 million shares during the last quarter. At the present, 87.10% of RS shares are in the ownership of institutional investors.