B. Metzler seel. Sohn & Co. AG Acquires New Shares in RLI Corp. $RLI

Key Points

• B. Metzler seel. Sohn & Co. AG acquired 65,363 shares of RLI Corp. worth approximately $3.86 million, representing about 0.07% of the insurer. Institutional investors collectively own 77.89% of RLI.
• RLI exceeded quarterly expectations, reporting $0.83 in EPS versus the $0.72 consensus estimate, while revenue rose 15.2% year over year to $575.57 million.
• RLI declared a quarterly dividend of $0.18, equivalent to an annualized $0.72 and a 1.1% yield. Analysts maintain a consensus “Hold” rating with an average price target of $63.00.

B. Metzler seel. Sohn & Co. AG bought a new position in RLI Corp. (NYSE:RLI - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 65,363 shares of the insurance provider's stock, valued at approximately $3,861,000. B. Metzler seel. Sohn & Co. AG owned about 0.07% of RLI at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also modified their holdings of the company. BlackRock Inc. acquired a new position in shares of RLI during the 2nd quarter valued at about $492,175,000. Wasatch Advisors LP bought a new stake in shares of RLI in the second quarter valued at approximately $84,608,000. Norges Bank acquired a new stake in RLI in the 4th quarter worth $66,997,000. Bank of New York Mellon Corp acquired a new position in RLI in the 2nd quarter valued at approximately $46,855,000. Finally, Victory Capital Management Inc. raised its stake in shares of RLI by 6,060.1% in the fourth quarter. Victory Capital Management Inc. now owns 739,709 shares of the insurance provider's stock valued at $47,327,000 after purchasing an additional 727,701 shares in the last quarter. Institutional investors own 77.89% of the company's stock.

Insiders Place Their Bets

In related news, Director Clark C. Kellogg acquired 3,000 shares of the stock in a transaction that occurred on Monday, June 1st. The shares were bought at an average price of $50.90 per share, for a total transaction of $152,700.00. Following the completion of the transaction, the director directly owned 4,502 shares in the company, valued at approximately $229,151.80. This trade represents a 199.73% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Craig W. Kliethermes bought 2,000 shares of the company's stock in a transaction that occurred on Wednesday, May 27th. The stock was purchased at an average cost of $52.00 per share, with a total value of $104,000.00. Following the acquisition, the chief executive officer directly owned 150,990 shares in the company, valued at $7,851,480. This trade represents a 1.34% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have bought 9,500 shares of company stock worth $492,115 over the last three months. Company insiders own 2.39% of the company's stock.

RLI Stock Up 0.6%

RLI opened at $65.47 on Friday. The stock has a market cap of $6.01 billion, a price-to-earnings ratio of 13.75 and a beta of 0.38. RLI Corp. has a twelve month low of $47.26 and a twelve month high of $69.19. The company's 50-day moving average price is $60.52 and its two-hundred day moving average price is $58.02.

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 for the quarter, topping analysts' consensus estimates of $0.72 by $0.11. RLI had a net margin of 22.22% and a return on equity of 17.61%. The firm had revenue of $575.57 million during the quarter, compared to analyst estimates of $568.70 million. During the same period in the previous year, the business posted $0.82 EPS. The business's quarterly revenue was up 15.2% on a year-over-year basis. As a group, sell-side analysts anticipate that RLI Corp. will post 2.88 earnings per share for the current year.

RLI Announces Dividend

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

Analyst Ratings Changes

Several brokerages have recently issued reports on RLI. Wall Street Zen raised RLI from a "sell" rating to a "hold" rating in a research note on Saturday, August 1st. UBS Group set a $74.00 target price on RLI in a report on Tuesday, July 28th. Weiss Ratings upgraded RLI from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday, July 29th. Keefe, Bruyette & Woods reissued an "outperform" rating and issued a $74.00 target price (up from $70.00) on shares of RLI in a research note on Tuesday, July 28th. Finally, Wells Fargo & Company downgraded shares of RLI from an "equal weight" rating to an "underweight" rating and set a $57.00 target price on the stock. in a report on Wednesday, July 29th. One investment analyst has rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, RLI currently has an average rating of "Hold" and a consensus price target of $63.00.

RLI 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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