Bank of America Corp DE Purchases New Position in RLI Corp. $RLI

Key Points

• Bank of America acquired 394,837 RLI shares worth approximately $23.3 million in the second quarter, giving it a 0.43% stake. Institutional investors collectively own 77.89% of the insurer.
• Analyst sentiment is cautious: RLI has an average “Reduce” rating and a consensus price target of $63.20, with recent downgrades from Jefferies and Wells Fargo.
• RLI exceeded quarterly expectations, reporting $0.83 EPS and $575.57 million in revenue, up 15.2% year over year. The company also pays a quarterly dividend of $0.18, equivalent to a 1.3% annualized yield.

Bank of America Corp DE acquired a new position in RLI Corp. (NYSE:RLI - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 394,837 shares of the insurance provider's stock, valued at approximately $23,323,000. Bank of America Corp DE owned 0.43% of RLI at the end of the most recent reporting period.

Several other large investors have also bought and sold shares of the company. IFP Advisors Inc lifted its stake in shares of RLI by 85.9% in the 4th quarter. IFP Advisors Inc now owns 684 shares of the insurance provider's stock valued at $44,000 after purchasing an additional 316 shares during the period. Versant Capital Management Inc raised its holdings in RLI by 28.5% in the second quarter. Versant Capital Management Inc now owns 835 shares of the insurance provider's stock worth $49,000 after purchasing an additional 185 shares in the last quarter. Rothschild Investment LLC lifted its position in RLI by 213.1% during the fourth quarter. Rothschild Investment LLC now owns 886 shares of the insurance provider's stock valued at $57,000 after buying an additional 603 shares during the period. Global Retirement Partners LLC lifted its position in RLI by 371.7% during the fourth quarter. Global Retirement Partners LLC now owns 1,368 shares of the insurance provider's stock valued at $88,000 after buying an additional 1,078 shares during the period. Finally, Evolution Wealth Management Inc. bought a new stake in shares of RLI during the 4th quarter valued at $113,000. 77.89% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several research analysts recently issued reports on the stock. UBS Group set a $74.00 price target on shares of RLI in a research note on Tuesday, July 28th. Jefferies Financial Group cut 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. Keefe, Bruyette & Woods reaffirmed an "outperform" rating and set a $74.00 target price (up from $70.00) on shares of RLI in a research note on Tuesday, July 28th. Wall Street Zen upgraded shares of RLI from a "sell" rating to a "hold" rating in a report on Saturday, August 1st. Finally, Wells Fargo & Company cut RLI from an "equal weight" rating to an "underweight" rating and set a $57.00 price target on the stock. in a research report on Wednesday, July 29th. One research analyst has rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, RLI presently has an average rating of "Reduce" and a consensus target price of $63.20.

RLI Price Performance

Shares of RLI stock opened at $56.90 on Thursday. RLI Corp. has a 1 year low of $47.26 and a 1 year high of $67.12. The firm's 50-day moving average is $62.44 and its 200 day moving average is $58.09. The stock has a market cap of $5.22 billion, a price-to-earnings ratio of 11.95 and a beta of 0.38.

RLI (NYSE:RLI - Get Free Report) last issued 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 business had revenue of $575.57 million during the quarter, compared to analysts' expectations of $568.70 million. During the same period in the previous year, the company earned $0.82 earnings per share. The business's revenue for the quarter was up 15.2% compared to the same quarter last year. On average, equities analysts expect that RLI Corp. will post 2.88 EPS for the current fiscal year.

RLI Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Monday, August 31st were given a $0.18 dividend. The ex-dividend date of this dividend was Monday, August 31st. This represents a $0.72 annualized dividend and a yield of 1.3%. RLI's dividend payout ratio is 15.13%.

About RLI

RLI Corp. is a specialty property and casualty insurance company headquartered in Peoria, Illinois. Through its subsidiaries, the company underwrites a broad range of insurance products for commercial and personal customers, with an emphasis on specialized risks that may not be fully addressed by standard insurance carriers.

RLI's products include commercial property and casualty coverage, transportation and marine insurance, surety bonds, workers' compensation, professional liability, and personal umbrella insurance.

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