RLI Corp. (NYSE:RLI) Receives Average Rating of "Reduce" from Analysts

Key Points

• Analysts hold a consensus “Reduce” rating on RLI, with two sell ratings, four holds, and one buy. The average 12-month price target is $63.20, compared with the stock’s reported price of $61.32.
• Recent analyst actions were mixed but leaned negative: Jefferies and Wells Fargo downgraded the shares, while Keefe, Bruyette & Woods raised its price target to $74 and maintained an “outperform” rating.
• RLI reported quarterly EPS of $0.83, exceeding the $0.72 estimate, while revenue rose 15.2% year over year to $575.57 million. The company also paid a quarterly dividend of $0.18, representing a 1.2% yield.

RLI Corp. (NYSE:RLI - Get Free Report) has earned a consensus recommendation of "Reduce" from the seven analysts that are currently covering the company, MarketBeat.com reports. Two investment analysts have rated the stock with a sell rating, four have given a hold rating and one has given a buy rating to the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $63.20.

A number of equities analysts recently weighed in on the stock. Jefferies Financial Group lowered shares of RLI from a "hold" rating to an "underperform" rating and set a $53.00 target price for the company. in a research report on Tuesday, August 25th. Wells Fargo & Company downgraded shares of RLI from an "equal weight" rating to an "underweight" rating and set a $57.00 price target on the stock. in a report on Wednesday, July 29th. UBS Group set a $74.00 price target on shares of RLI in a research note on Tuesday, July 28th. Keefe, Bruyette & Woods reissued an "outperform" rating and set a $74.00 price objective (up from $70.00) on shares of RLI in a report on Tuesday, July 28th. Finally, Wall Street Zen upgraded RLI from a "sell" rating to a "hold" rating in a research report on Saturday, August 1st.

Hedge Funds Weigh In On RLI

Institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of RLI during the 2nd quarter worth approximately $492,175,000. Wasatch Advisors LP grew its holdings in shares of RLI by 40.7% in the second quarter. Wasatch Advisors LP now owns 3,631,273 shares of the insurance provider's stock valued at $214,499,000 after purchasing an additional 1,051,318 shares in the last quarter. Geode Capital Management LLC grew its holdings in shares of RLI by 3.2% in the fourth quarter. Geode Capital Management LLC now owns 2,191,891 shares of the insurance provider's stock valued at $140,260,000 after purchasing an additional 67,025 shares in the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of RLI by 1.1% in the first quarter. Dimensional Fund Advisors LP now owns 1,920,823 shares of the insurance provider's stock valued at $109,567,000 after purchasing an additional 21,299 shares in the last quarter. Finally, Maren Capital LLC increased its position in RLI by 1.6% in the second quarter. Maren Capital LLC now owns 1,817,370 shares of the insurance provider's stock worth $107,352,000 after purchasing an additional 28,366 shares during the last quarter. Hedge funds and other institutional investors own 77.89% of the company's stock.

RLI Trading Down 0.0%

NYSE RLI opened at $61.32 on Wednesday. RLI has a 12 month low of $47.26 and a 12 month high of $67.12. The stock has a market cap of $5.63 billion, a PE ratio of 12.88 and a beta of 0.38. The stock's 50 day moving average is $62.57 and its 200 day moving average is $58.22.

RLI (NYSE:RLI - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The insurance provider reported $0.83 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.72 by $0.11. The business had revenue of $575.57 million during the quarter, compared to analyst estimates of $568.70 million. RLI had a net margin of 22.22% and a return on equity of 17.61%. The company's revenue was up 15.2% on a year-over-year basis. During the same period last year, the firm posted $0.82 EPS. On average, analysts forecast that RLI will post 2.88 EPS for the current fiscal year.

RLI Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Monday, August 31st were given a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date was Monday, August 31st. RLI's payout ratio is currently 15.13%.

RLI Company Profile

RLI Corp. is a specialty property and casualty insurance company headquartered in Peoria, Illinois. Through its subsidiaries, the company underwrites a broad range of insurance products for commercial and personal customers, with an emphasis on specialized risks that may not be fully addressed by standard insurance carriers.

RLI's products include commercial property and casualty coverage, transportation and marine insurance, surety bonds, workers' compensation, professional liability, and personal umbrella insurance.

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