How Should Investors View Reliance Steel & Aluminum Co. (RS) Insider Trading?

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As of Wednesday close, Reliance Steel & Aluminum Co.’s (NYSE:RS) stock was down -$1.34, moving down -0.63 percent to $211.58. The average number of shares traded per day over the past five days has been 344,640 shares. 5 times new highs have been achieved over the past 5 days, with a $8.89 gain in that time frame. In the last twenty days, the average volume was 426,465, while in the previous 50 days, it was 465,808.

Since last month, RS stock rose 10.98%. Shares of the company fell to $183.34 on 10/24/22, the lowest level in the past month. A 52-week high of $213.37 was reached on 11/23/22 after having rallying from a 52-week low of $145.79. Since the beginning of this year, RS’s stock price has risen by 30.43% or $49.36, and marked a new high 15 times. However, the stock has declined by -0.84% since its 52-week high.


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RS stock investors should be aware that Reliance Steel & Aluminum Co. (RS) stock had its last reported insider trading activity 49 days ago on Oct 06. HOFFMAN JAMES DONALD, the CEO of the company, disposed of 10,000 shares for $183.31 on Oct 06. It resulted in a $1,833,132 divestment by the insider. Ajemyan Arthur sold 1,000 shares at an average price of $198.39 on Aug 16. The insider now owns 12,870 shares following the transaction. On Aug 10, SVP, General Counsel, Corp Sec Smith William A II sold 2,954 shares at $193.02 apiece. The transaction was valued at $570,181.

Valuation Metrics

Right now, Reliance Steel & Aluminum Co. (RS) has a P/E ratio of about 6.92. The stock’s beta is 0.87. Besides these, the trailing price-to-sales (P/S) ratio of 0.71, the price-to-book (PB) ratio of 1.86, and the price-to-cash flow ratio of 10.42 may also be considered.

The latest dividend of $0.8750 per share was paid out, remained unchanged from last year’s $0.8750. On Thursday February 17 2022, a $0.1870 dividend increase was announced.

Financial Health

In the three months ended September 29, Reliance Steel & Aluminum Co.’s quick ratio stood at 1.80, while its current ratio was 3.30, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 0.17, and the total debt-to-equity ratio was 0.24. On the profitability front, the trailing twelve-month gross margin is 30.90% percent. In the year ended September 29, operating margins totaled 15.00%. Based on annual data, RS earned $4.49 billion in gross profit and brought in $14.09 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 19.20%. Return on equity (ROE) for the past 12 months was 29.00%.

In Reliance Steel & Aluminum Co.’s quarter-end financial report for September 29, it reported total debt of $1.14 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. RS’s revenue rose 9.41% to $4.68 billion during the quarter, while net income inched up to $4.25 billion. While analysts expected Reliance Steel & Aluminum Co. to report $6.19 quarterly earnings, the actual figure was $6.48 per share, beating the consensus estimate by 4.70%. During the quarter, the company generated $608.9 million in EBITDA. The liabilities of Reliance Steel & Aluminum Co. were 3.35 billion at the end of its most recent quarter ended September 29. The value of shareholders’ equity is $58.69 million.

Technical Picture

This quick technical analysis looks at Reliance Steel & Aluminum Co.’s (RS) price momentum. With a historical volatility rate of 43.18%, the RSI 9-day stood at 65.28% on 23 November.

With respect to its five-day moving average, the current Reliance Steel & Aluminum Co. price is up by +4.39% percent or $8.89. At present, RS shares trade +8.99% above its 20-day simple moving average and +24.65% percent above its 100-day simple moving average. However, the stock is currently trading approximately +18.80% above its SMA50 and +33.06% above its SMA200.

Stochastic coefficient K was 92.02% and Stochastic coefficient D was 90.72%, while ATR was 5.99. Given the Stochastic reading of 85.12% for the 14-day period, the RSI (14) reading has been calculated as 63.16%. As of today, the MACD Oscillator reading stands at 5.92, while the 14-day reading stands at 6.26.

Analyst Ratings

Reliance Steel & Aluminum Co. downgraded its rating on Reliance Steel & Aluminum Co. (NYSE: RS) to a Neutral in a note to investors on October 06, 2022. The analysts firm previously had a Buy rating on the stock.Reliance Steel & Aluminum Co. (RS) has been rated Overweight by analysts. According to 0 brokerage firms, RS is a sell, and 2 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Reliance Steel & Aluminum Co. stock as buy, with 5 recommending it as overweight.

With a median target price of $222.00, the current consensus forecast for the stock is $214.00 – $230.00. Based on these forecasts, analysts predict Reliance Steel & Aluminum Co. (RS) will achieve an average price target of $222.17.

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