William A. Smith II, Senior Vice President, General Counsel, and Corporate Secretary at Reliance, Inc. (NYSE:RS), recently sold 6,500 shares of the company's common stock. The transaction, which took place on November 6, 2024, involved a weighted average sale price of $321.71 per share, with actual sale prices ranging from $321.71 to $321.80. This sale resulted in a total transaction value of approximately $2.09 million.
Following the sale, Smith retains direct ownership of 16,849 shares of Reliance, Inc. In addition to his directly owned shares, Smith also holds 417 shares indirectly as a trustee of the Reliance, Inc. Employee Stock Ownership Plan.
In other recent news, Reliance, Inc. reported its Q3 earnings, revealing non-GAAP earnings per diluted share of $3.64. Despite facing market challenges, the company completed four acquisitions and implemented a substantial share repurchase plan, buying back $951.3 million worth of shares within the first nine months of 2024. Reliance, Inc. also reported cash flow from operations at $463.9 million, with capital expenditures of $112.8 million.
However, the company experienced a 21.7% decrease in non-GAAP earnings per diluted share from the previous quarter. For Q4, a decrease in tons sold is anticipated, but year-over-year increase is expected. Non-GAAP earnings for Q4 are projected to be between $2.65 and $2.85 per diluted share.
These are among the recent developments for Reliance, Inc. The company's diversified market exposure and strategic growth initiatives have been key in navigating the current market conditions. Looking ahead, management remains optimistic about demand in 2025, especially considering potential macroeconomic changes post-Presidential election and anticipated lower interest rates.
InvestingPro Insights
While William A. Smith II's recent stock sale might raise eyebrows, a closer look at Reliance, Inc.'s (NYSE:RS) financials reveals a company with solid fundamentals. According to InvestingPro data, Reliance boasts a market capitalization of $17.37 billion and a price-to-earnings ratio of 17.41, suggesting a reasonable valuation relative to its earnings.
The company's financial health is further underscored by its revenue of $14.05 billion over the last twelve months as of Q3 2024, with a gross profit margin of 30.2%. This robust top-line performance is complemented by a healthy dividend yield of 1.37%, with the company demonstrating a commendable 10% dividend growth over the same period.
InvestingPro Tips highlight that Reliance has raised its dividend for 13 consecutive years, indicating a strong commitment to shareholder returns. Additionally, the company's stock price has outperformed the S&P 500 index over the past year, with a total return of 22.74% over the last 12 months.
These insights provide context to Smith's transaction, suggesting that despite the insider sale, Reliance continues to demonstrate financial strength and shareholder value. Investors seeking a more comprehensive analysis can access additional tips and metrics through InvestingPro, which offers a total of 14 tips for Reliance, Inc.
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