Bank of America Corp DE Boosts Stock Position in RLI Corp. $RLI

Key Points

• Bank of America increased its RLI position by 37% in the first quarter, owning 282,656 shares valued at approximately $16.1 million. Institutional investors collectively hold 77.89% of RLI’s stock.
• RLI insiders have been buying shares, including CEO Craig W. Kliethermes and Director David B. Duclos; insiders purchased 9,500 shares worth about $492,115 over the past three months.
• RLI exceeded quarterly earnings expectations, reporting $0.83 EPS and $575.57 million in revenue, while revenue grew 15.2% year over year. Analysts give the stock a consensus “Hold” rating with a $63 price target, and the company declared a quarterly dividend of $0.18 per share.

Bank of America Corp DE raised its holdings in shares of RLI Corp. (NYSE:RLI - Free Report) by 37.0% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 282,656 shares of the insurance provider's stock after purchasing an additional 76,413 shares during the quarter. Bank of America Corp DE owned 0.31% of RLI worth $16,123,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. Covestor Ltd grew its stake in RLI by 13.0% in the 4th quarter. Covestor Ltd now owns 1,590 shares of the insurance provider's stock worth $102,000 after acquiring an additional 183 shares in the last quarter. Farther Finance Advisors LLC boosted its holdings in shares of RLI by 94.4% in the fourth quarter. Farther Finance Advisors LLC now owns 414 shares of the insurance provider's stock valued at $26,000 after purchasing an additional 201 shares during the period. Public Employees Retirement System of Ohio grew its stake in RLI by 0.3% in the third quarter. Public Employees Retirement System of Ohio now owns 75,502 shares of the insurance provider's stock worth $4,924,000 after purchasing an additional 207 shares in the last quarter. OLD National Bancorp IN grew its stake in RLI by 4.0% in the fourth quarter. OLD National Bancorp IN now owns 5,819 shares of the insurance provider's stock worth $372,000 after purchasing an additional 224 shares in the last quarter. Finally, Commerce Bank grew its stake in RLI by 2.9% in the fourth quarter. Commerce Bank now owns 8,079 shares of the insurance provider's stock worth $517,000 after purchasing an additional 224 shares in the last quarter. 77.89% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, Director David B. Duclos bought 2,500 shares of RLI stock in a transaction on Thursday, May 28th. The stock was acquired at an average cost of $51.99 per share, for a total transaction of $129,975.00. Following the completion of the acquisition, the director owned 9,780 shares of the company's stock, valued at $508,462.20. This trade represents a 34.34% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Craig W. Kliethermes purchased 2,000 shares of the stock in a transaction dated Wednesday, May 27th. The stock was purchased at an average price of $52.00 per share, for a total transaction of $104,000.00. Following the completion of the acquisition, the chief executive officer directly owned 150,990 shares in the company, valued at approximately $7,851,480. This represents a 1.34% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have acquired 9,500 shares of company stock valued at $492,115. Company insiders own 2.39% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Wall Street Zen raised RLI from a "sell" rating to a "hold" rating in a research report on Saturday, August 1st. Weiss Ratings raised RLI from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday, July 29th. UBS Group set a $74.00 price target on RLI in a research note on Tuesday, July 28th. Keefe, Bruyette & Woods restated an "outperform" rating and issued a $74.00 price objective (up from $70.00) on shares of RLI in a report on Tuesday, July 28th. Finally, Wells Fargo & Company lowered shares of RLI from an "equal weight" rating to an "underweight" rating and set a $57.00 price objective for the company. in a research note on Wednesday, July 29th. One analyst has rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, RLI presently has an average rating of "Hold" and a consensus price target of $63.00.

RLI Stock Up 1.2%

RLI stock opened at $65.11 on Friday. The firm has a market cap of $5.98 billion, a P/E ratio of 13.68 and a beta of 0.38. The business has a fifty day moving average of $60.29 and a two-hundred day moving average of $57.97. 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 announced its quarterly earnings results 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 for the quarter, compared to the consensus estimate of $568.70 million. RLI had a return on equity of 17.61% and a net margin of 22.22%.The business's revenue was up 15.2% compared to the same quarter last year. During the same period last year, the business posted $0.82 EPS. Equities analysts expect that RLI Corp. will post 2.88 earnings per share for the current year.

RLI Announces Dividend

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