Zacks Research Issues Negative Forecast for RLI Earnings

Key Points

• Zacks Research lowered RLI’s Q2 2027 EPS forecast to $0.66 from $0.67 and projected Q3 2027 EPS of $0.59; full-year consensus EPS is $2.88.
• Analyst sentiment is cautious, with Jefferies and Wells Fargo downgrading the stock and MarketBeat showing a consensus rating of “Reduce” with a $63.20 price target.
• RLI recently exceeded quarterly earnings expectations, reporting $0.83 EPS versus $0.72 consensus and 15.2% year-over-year revenue growth, while maintaining a quarterly dividend of $0.18 per share.

RLI Corp. (NYSE:RLI - Free Report) - Analysts at Zacks Research reduced their Q2 2027 earnings per share (EPS) estimates for RLI in a report released on Thursday, August 27th. Zacks Research analyst Team now forecasts that the insurance provider will earn $0.66 per share for the quarter, down from their prior forecast of $0.67. The consensus estimate for RLI's current full-year earnings is $2.88 per share. Zacks Research also issued estimates for RLI's Q3 2027 earnings at $0.59 EPS.

A number of other research firms also recently commented on RLI. Jefferies Financial Group downgraded shares of RLI from a "hold" rating to an "underperform" rating and set a $53.00 price objective on the stock. in a 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 for the company. in a research report on Wednesday, July 29th. Wall Street Zen raised RLI from a "sell" rating to a "hold" rating in a research note on Saturday, August 1st. Weiss Ratings upgraded RLI from a "sell (d+)" rating to a "hold (c-)" rating in a report on Wednesday, July 29th. Finally, UBS Group set a $74.00 price objective on RLI in a report on Tuesday, July 28th. One analyst has rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, RLI currently has a consensus rating of "Reduce" and a consensus price target of $63.20.

RLI Stock Up 0.1%

Shares of RLI opened at $64.38 on Monday. The company has a 50-day simple moving average of $61.68 and a 200-day simple moving average of $58.16. The company has a market capitalization of $5.91 billion, a PE ratio of 13.53 and a beta of 0.38. RLI has a 52-week low of $47.26 and a 52-week high of $68.29.

RLI (NYSE:RLI - Get Free Report) last released its earnings results on Wednesday, July 22nd. The insurance provider reported $0.83 EPS for the quarter, beating analysts' consensus estimates of $0.72 by $0.11. RLI had a return on equity of 17.61% and a net margin of 22.22%.The company had revenue of $575.57 million during the quarter, compared to the consensus estimate of $568.70 million. During the same quarter last year, the company earned $0.82 earnings per share. RLI's quarterly revenue was up 15.2% compared to the same quarter last year.

Institutional Trading of RLI

Several large investors have recently modified their holdings of RLI. Vanguard Group Inc. increased its stake in shares of RLI by 3.4% during the 4th quarter. Vanguard Group Inc. now owns 9,448,929 shares of the insurance provider's stock worth $604,542,000 after purchasing an additional 310,857 shares in the last quarter. State Street Corp boosted its stake in shares of RLI by 1.4% during the 4th quarter. State Street Corp now owns 8,875,002 shares of the insurance provider's stock worth $567,823,000 after purchasing an additional 124,687 shares during the last quarter. BlackRock Inc. acquired a new stake in RLI during the second quarter worth approximately $492,175,000. California State Teachers Retirement System grew its position in shares of RLI by 5,642.4% in the second quarter. California State Teachers Retirement System now owns 5,759,443 shares of the insurance provider's stock valued at $340,210,000 after purchasing an additional 5,659,146 shares during the period. Finally, Wasatch Advisors LP grew its holdings in RLI by 40.7% in the 2nd quarter. Wasatch Advisors LP now owns 3,631,273 shares of the insurance provider's stock valued at $214,499,000 after buying an additional 1,051,318 shares during the period. 77.89% of the stock is currently owned by institutional investors and hedge funds.

RLI Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Monday, August 31st will be given a dividend of $0.18 per share. The ex-dividend date is Monday, August 31st. This represents a $0.72 dividend on an annualized basis and a yield of 1.1%. RLI's payout ratio is presently 15.13%.

RLI Company Profile

RLI Corporation NYSE: RLI is a specialty property and casualty insurance company focused on underwriting niche risks for businesses and individuals. Headquartered in Peoria, Illinois, the company operates through a network of independent agents and brokers, offering customized coverage solutions. RLI's approach emphasizes disciplined underwriting, targeted product development and strong customer service to maintain profitability and long-term growth.

Founded in 1965 as Replacement Lens, Inc, RLI initially provided insurance for contact lens manufacturers before shifting its focus to specialty insurance in the 1980s.

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