Arrowstreet Capital Limited Partnership Boosts Stock Position in RLI Corp. $RLI

Key Points

• Arrowstreet Capital increased its RLI stake by 6.9% in the first quarter, owning 520,422 shares worth approximately $29.7 million. Institutional investors collectively own 77.89% of the insurer.
• RLI insiders purchased 16,500 shares worth $858,955 over the past 90 days, while the company raised its quarterly dividend from $0.16 to $0.18 per share.
• RLI reported quarterly EPS of $0.83, beating estimates of $0.72, with revenue up 15.2% year over year to $575.57 million. The stock opened at $65.58, compared with a consensus analyst price target of $63.00 and an overall “Reduce” rating.

Arrowstreet Capital Limited Partnership raised its stake in RLI Corp. (NYSE:RLI - Free Report) by 6.9% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 520,422 shares of the insurance provider's stock after acquiring an additional 33,547 shares during the period. Arrowstreet Capital Limited Partnership owned approximately 0.57% of RLI worth $29,685,000 as of its most recent SEC filing.

Other institutional investors have also recently modified their holdings of the company. Wasatch Advisors LP purchased a new stake in RLI during the 2nd quarter valued at about $84,608,000. Norges Bank purchased a new position in RLI in the fourth quarter worth about $66,997,000. Victory Capital Management Inc. raised its holdings in RLI by 6,060.1% in the fourth quarter. Victory Capital Management Inc. now owns 739,709 shares of the insurance provider's stock worth $47,327,000 after buying an additional 727,701 shares during the last quarter. First Trust Advisors LP raised its holdings in RLI by 311.6% in the first quarter. First Trust Advisors LP now owns 688,318 shares of the insurance provider's stock worth $39,262,000 after buying an additional 521,096 shares during the last quarter. Finally, Bank of Montreal Can lifted its stake in shares of RLI by 3,664.4% in the fourth quarter. Bank of Montreal Can now owns 368,384 shares of the insurance provider's stock worth $23,569,000 after buying an additional 358,598 shares in the last quarter. 77.89% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other RLI news, Director David B. Duclos acquired 2,500 shares of the stock in a transaction dated Thursday, May 28th. The shares were acquired at an average cost of $51.99 per share, for a total transaction of $129,975.00. Following the completion of the transaction, the director directly owned 9,780 shares of the company's stock, valued at approximately $508,462.20. The trade was a 34.34% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, COO Jennifer L. Klobnak acquired 2,000 shares of the stock in a transaction dated Wednesday, May 27th. The stock was acquired at an average price of $52.72 per share, for a total transaction of $105,440.00. Following the completion of the transaction, the chief operating officer directly owned 104,318 shares of the company's stock, valued at approximately $5,499,644.96. This represents a 1.95% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders acquired 16,500 shares of company stock valued at $858,955 in the last ninety days. Insiders own 2.39% of the company's stock.

RLI Stock Up 0.7%

RLI stock opened at $65.58 on Thursday. The business's 50-day moving average price is $56.70 and its 200-day moving average price is $57.46. The stock has a market cap of $6.02 billion, a P/E ratio of 13.78 and a beta of 0.38. RLI Corp. has a twelve month low of $47.26 and a twelve month high of $69.19.

RLI (NYSE:RLI - Get Free Report) last released its earnings results on Wednesday, July 22nd. The insurance provider reported $0.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.72 by $0.11. RLI had a net margin of 22.22% and a return on equity of 17.61%. The company had revenue of $575.57 million during the quarter, compared to analyst estimates of $568.70 million. During the same period in the prior year, the firm posted $0.82 EPS. The firm's quarterly revenue was up 15.2% compared to the same quarter last year. On average, equities research analysts expect that RLI Corp. will post 2.85 earnings per share for the current fiscal year.

RLI Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Friday, May 29th were issued a dividend of $0.18 per share. This is a boost from RLI's previous quarterly dividend of $0.16. This represents a $0.72 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend was Friday, May 29th. RLI's payout ratio is 15.13%.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the company. UBS Group set a $74.00 price target on RLI in a research note on Tuesday. Keefe, Bruyette & Woods reiterated an "outperform" rating and issued a $74.00 price objective (up from $70.00) on shares of RLI in a report on Tuesday. Zacks Research raised RLI from a "strong sell" rating to a "hold" rating in a research report on Thursday, April 2nd. Wells Fargo & Company cut shares of RLI from an "equal weight" rating to an "underweight" rating and set a $57.00 target price on the stock. in a research note on Wednesday. Finally, Weiss Ratings downgraded shares of RLI from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, May 22nd. One equities research analyst has rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Reduce" and a consensus price target of $63.00.

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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