BlackRock Inc. Takes Position in RLI Corp. $RLI

Key Points

• BlackRock acquired 8.33 million RLI shares worth approximately $492.2 million, giving it a 9.08% stake. Institutional investors collectively own 77.89% of the insurer.
• RLI reported quarterly EPS of $0.83, exceeding the $0.72 consensus estimate, while revenue rose 15.2% year over year to $575.6 million.
• Analysts have a consensus “Hold” rating and a $63 target price, despite RLI trading at $66.64. The company also announced a quarterly dividend of $0.18 per share, equal to a 1.1% yield.

BlackRock Inc. purchased a new stake in RLI Corp. (NYSE:RLI - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm purchased 8,332,056 shares of the insurance provider's stock, valued at approximately $492,175,000. BlackRock Inc. owned approximately 9.08% of RLI at the end of the most recent reporting period.

Several other institutional investors have also recently bought and sold shares of RLI. UBS Group AG lifted its stake in shares of RLI by 8.7% during the fourth quarter. UBS Group AG now owns 607,176 shares of the insurance provider's stock valued at $38,847,000 after acquiring an additional 48,563 shares during the period. Wasatch Advisors LP increased its position in RLI by 33.1% in the first quarter. Wasatch Advisors LP now owns 2,579,955 shares of the insurance provider's stock worth $147,161,000 after purchasing an additional 641,769 shares during the period. Hingham Institution for Savings bought a new stake in RLI during the 4th quarter worth about $1,919,000. Chase Investment Counsel Corp bought a new stake in RLI during the 4th quarter worth about $1,535,000. Finally, Vanguard Group Inc. lifted its position in RLI by 3.4% during the 4th quarter. Vanguard Group Inc. now owns 9,448,929 shares of the insurance provider's stock valued at $604,542,000 after purchasing an additional 310,857 shares during the period. Institutional investors own 77.89% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on the stock. Weiss Ratings upgraded shares of RLI from a "sell (d+)" rating to a "hold (c-)" rating in a report on Wednesday, July 29th. Wall Street Zen raised shares of RLI from a "sell" rating to a "hold" rating in a report on Saturday, August 1st. UBS Group set a $74.00 target price on shares of RLI in a research report on Tuesday, July 28th. Wells Fargo & Company cut 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. Finally, 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, July 28th. One analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, RLI has an average rating of "Hold" and a consensus target price of $63.00.

RLI Trading Up 1.9%

RLI stock opened at $66.64 on Tuesday. RLI Corp. has a 1-year low of $47.26 and a 1-year high of $68.69. The firm has a market cap of $6.12 billion, a PE ratio of 14.00 and a beta of 0.38. The business's 50-day moving average price is $60.78 and its two-hundred day moving average price is $58.07.

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, topping the consensus estimate 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 period in the prior year, the company earned $0.82 earnings per share. The company's revenue for the quarter was up 15.2% compared to the same quarter last year. On average, analysts forecast that RLI Corp. will post 2.88 earnings per share for the current year.

RLI Dividend Announcement

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 issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 1.1%. The ex-dividend date is Monday, August 31st. RLI's dividend payout ratio (DPR) is 15.13%.

Insider Activity at RLI

In related news, CEO Craig W. Kliethermes purchased 2,000 shares of the business's stock in a transaction on Wednesday, May 27th. The shares were purchased at an average price of $52.00 per share, with a total value of $104,000.00. Following the completion of the purchase, the chief executive officer owned 150,990 shares in the company, valued at $7,851,480. This represents a 1.34% increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director David B. Duclos purchased 2,500 shares of RLI stock in a transaction dated Thursday, May 28th. The stock was bought at an average price of $51.99 per share, with a total value of $129,975.00. Following the acquisition, the director directly owned 9,780 shares of the company's stock, valued at approximately $508,462.20. This trade represents a 34.34% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders have bought 9,500 shares of company stock valued at $492,115. Corporate insiders own 2.39% of the company's stock.

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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