RLI Corp. (NYSE:RLI) Stock Rated "Reduce" by Wall Street Brokerages

Key Points

• Analyst sentiment is cautious: RLI received an average “Reduce” rating from six firms—two sell, three hold and one buy—with an average 1-year price target of $62.40.
• Quarterly results were mixed: Earnings per share of $0.86 beat the $0.54 consensus, while revenue of $476.96 million fell short of analysts’ $533.51 million estimate.
• RLI declared a quarterly dividend of $0.18 per share, equivalent to $0.72 annually and a yield of about 1.0%.

RLI Corp. (NYSE:RLI - Get Free Report) has earned an average rating of "Reduce" from the six ratings firms that are currently covering the firm, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation, three have issued a hold recommendation and one has assigned a buy recommendation to the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is $62.40.

RLI has been the subject of several recent research reports. Keefe, Bruyette & Woods reiterated an "outperform" rating and issued a $74.00 price objective (up from $69.00) on shares of RLI in a research note on Wednesday, October 21st. Wells Fargo & Company set a $53.00 price objective on RLI and gave the stock an "underweight" rating in a research note on Wednesday, October 21st. UBS Group set a $74.00 price objective on RLI in a report on Tuesday, July 28th. Jefferies Financial Group lowered RLI from a "hold" rating to an "underperform" rating and set a $53.00 price target on the stock. in a research report on Tuesday, August 25th. Finally, Wall Street Zen raised shares of RLI from a "sell" rating to a "hold" rating in a report on Saturday, August 1st.

RLI Stock Performance

Shares of NYSE:RLI opened at $68.98 on Thursday. RLI has a fifty-two week low of $47.26 and a fifty-two week high of $69.07. The company's 50-day moving average is $60.80 and its 200 day moving average is $58.81. The company has a market capitalization of $6.33 billion, a P/E ratio of 16.08 and a beta of 0.31.

RLI (NYSE:RLI - Get Free Report) last released its earnings results on Monday, October 19th. The insurance provider reported $0.86 earnings per share for the quarter, beating analysts' consensus estimates of $0.54 by $0.32. RLI had a net margin of 20.34% and a return on equity of 18.19%. The firm had revenue of $476.96 million for the quarter, compared to analysts' expectations of $533.51 million. During the same period in the previous year, the company earned $0.83 earnings per share. As a group, research analysts predict that RLI will post 3.15 earnings per share for the current year.

RLI Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Monday, August 31st were given a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date was Monday, August 31st. RLI's dividend payout ratio is 16.78%.

Hedge Funds Weigh In On RLI

Several hedge funds have recently bought and sold shares of RLI. Lido Advisors LLC boosted its stake in RLI by 34.0% in the 3rd quarter. Lido Advisors LLC now owns 15,941 shares of the insurance provider's stock worth $882,000 after purchasing an additional 4,044 shares during the period. Keybank National Association OH grew its stake in RLI by 6.0% during the 3rd quarter. Keybank National Association OH now owns 3,876 shares of the insurance provider's stock worth $214,000 after buying an additional 221 shares during the last quarter. AlphaCore Capital LLC purchased a new stake in RLI during the third quarter worth $282,000. Parallel Advisors LLC grew its stake in shares of RLI by 85.4% during the 3rd quarter. Parallel Advisors LLC now owns 1,537 shares of the insurance provider's stock valued at $85,000 after buying an additional 708 shares during the period. Finally, Alps Advisors Inc. raised its position in shares of RLI by 4.8% in the 3rd quarter. Alps Advisors Inc. now owns 126,538 shares of the insurance provider's stock valued at $6,999,000 after purchasing an additional 5,752 shares in the last quarter. 77.89% of the stock is owned by institutional investors.

RLI Company Profile

RLI Corp. NYSE: RLI is a specialty insurance company that underwrites property and casualty insurance products for commercial and personal customers. The company focuses on specialized risks that may not be adequately served by standard insurance carriers.

RLI's offerings include commercial property and casualty coverage, professional liability insurance, surety bonds, transportation-related insurance, and personal lines such as homeowners and personal umbrella coverage. Its products are distributed through independent agents, brokers, and other insurance intermediaries.

Founded in 1965 and headquartered in Peoria, Illinois, RLI serves customers primarily throughout the United States.

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