Arthur Ajemyan, Senior Vice President and Chief Financial Officer of Reliance Inc. (NYSE:RS), recently offloaded a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Ajemyan sold a total of 6,332 shares of Reliance Inc. common stock on November 6th. The transactions were executed at prices ranging from $317.13 to $319.75 per share, amounting to approximately $2.01 million in total.
Following these sales, Ajemyan retains direct ownership of 9,245 shares. Additionally, he holds indirect stakes through the Reliance Inc. Employee Stock Ownership Plan and the 401(k) Plan, with 1,323 and 1,165 shares, respectively.
In other recent news, Reliance, Inc. has reported steady Q3 earnings despite market challenges, with non-GAAP earnings per diluted share at $3.64, marking a 21.7% decrease from the prior quarter. The company has remained growth-focused, completing four acquisitions and repurchasing a significant amount of its common stock. Cash flow from operations was reported at $463.9 million, with $112.8 million in capital expenditures.
Despite a 7.1% year-over-year increase in tons sold, the average selling price per ton declined by 4.3%. Projections for Q4 indicate a 6% to 8% decrease in tons sold and a 1.5% to 3.5% drop in average selling prices. The company also repurchased $951.3 million in shares in the first nine months of 2024 and announced a $1.5 billion share repurchase plan refresh.
Reliance's outlook for Q4 anticipates a decrease in tons sold but expects a year-over-year increase. Non-GAAP earnings for Q4 are projected between $2.65 and $2.85 per diluted share. The management remains optimistic about demand in 2025, especially post-Presidential election and with anticipated lower interest rates. These are some of the recent developments from the company.
InvestingPro Insights
While Arthur Ajemyan's recent stock sale might raise eyebrows, a closer look at Reliance Inc.'s (NYSE:RS) financial metrics provides additional context for investors. According to InvestingPro data, Reliance Inc. boasts a market capitalization of $17.37 billion, reflecting its substantial presence in the metals service center industry.
The company's P/E ratio stands at 17.41, suggesting a reasonable valuation compared to industry peers. This is further supported by an adjusted P/E ratio of 16.6 for the last twelve months as of Q3 2024, indicating that the stock may not be overpriced despite recent gains. In fact, Reliance Inc. has demonstrated strong performance, with a 22.74% price total return over the past year.
InvestingPro Tips highlight two key aspects of Reliance Inc.'s financial health. First, the company has consistently increased its dividend for 13 consecutive years, underscoring its commitment to shareholder returns. This is evidenced by a current dividend yield of 1.37% and a notable dividend growth of 10% in the last twelve months. Second, Reliance Inc. maintains high profitability with a gross profit margin of 30.2% for the same period.
These insights, along with 13 additional tips available on InvestingPro, offer a more comprehensive view of Reliance Inc.'s financial position and potential. The combination of consistent dividend growth and solid profitability may provide some reassurance to investors in light of the CFO's recent stock sale.
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