Dark Forest Capital Management LP Has $4.04 Million Stake in RLI Corp. $RLI

Key Points

• Dark Forest Capital Management LP increased its stake in RLI Corp. by 1,324.1% in Q1, owning 50,256 shares worth approximately $4 million after acquiring an additional 46,727 shares.
• RLI Corp. reported earnings of $0.84 per share for the latest quarter, surpassing expectations, and showed a 20% revenue increase year-over-year, reaching $562.28 million.
• The company announced a quarterly dividend of $0.16 per share, with a 1.0% yield, and a dividend payout ratio of 18.34%, highlighting its commitment to returning value to shareholders.

Dark Forest Capital Management LP lifted its stake in RLI Corp. (NYSE:RLI - Free Report) by 1,324.1% during the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 50,256 shares of the insurance provider's stock after purchasing an additional 46,727 shares during the period. Dark Forest Capital Management LP owned 0.05% of RLI worth $4,037,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also made changes to their positions in the stock. Vanguard Group Inc. boosted its position in shares of RLI by 95.2% in the 1st quarter. Vanguard Group Inc. now owns 8,996,643 shares of the insurance provider's stock worth $722,700,000 after purchasing an additional 4,388,400 shares during the last quarter. Kayne Anderson Rudnick Investment Management LLC boosted its position in shares of RLI by 117.0% in the 1st quarter. Kayne Anderson Rudnick Investment Management LLC now owns 5,226,797 shares of the insurance provider's stock worth $419,869,000 after purchasing an additional 2,817,616 shares during the last quarter. Neuberger Berman Group LLC boosted its position in shares of RLI by 106.6% in the 1st quarter. Neuberger Berman Group LLC now owns 2,750,738 shares of the insurance provider's stock worth $220,967,000 after purchasing an additional 1,419,212 shares during the last quarter. Markel Group Inc. raised its stake in RLI by 100.0% during the 1st quarter. Markel Group Inc. now owns 2,394,544 shares of the insurance provider's stock worth $192,354,000 after buying an additional 1,197,272 shares during the period. Finally, Dimensional Fund Advisors LP raised its stake in RLI by 97.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,861,984 shares of the insurance provider's stock worth $149,569,000 after buying an additional 920,799 shares during the period. 77.89% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Separately, Wall Street Zen raised RLI from a "sell" rating to a "hold" rating in a research note on Saturday, July 26th. Two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average target price of $78.60.

RLI Stock Up 1.4%

Shares of NYSE:RLI traded up $0.92 during midday trading on Monday, reaching $68.00. The company had a trading volume of 207,941 shares, compared to its average volume of 512,637. The company has a quick ratio of 0.35, a current ratio of 0.35 and a debt-to-equity ratio of 0.06. The business's 50 day moving average price is $68.47 and its 200 day moving average price is $72.95. The stock has a market cap of $6.24 billion, a PE ratio of 19.48 and a beta of 0.65. RLI Corp. has a 1-year low of $65.14 and a 1-year high of $91.14.

RLI (NYSE:RLI - Get Free Report) last released its earnings results on Monday, July 21st. The insurance provider reported $0.84 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.75 by $0.09. The business had revenue of $562.28 million for the quarter, compared to the consensus estimate of $445.55 million. RLI had a return on equity of 15.82% and a net margin of 17.81%.RLI's quarterly revenue was up 20.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.72 earnings per share. Research analysts forecast that RLI Corp. will post 3.08 EPS for the current fiscal year.

RLI Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 19th. Shareholders of record on Friday, August 29th will be given a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend is Friday, August 29th. RLI's payout ratio is 18.34%.

Insiders Place Their Bets

In other RLI news, COO Jennifer L. Klobnak purchased 3,000 shares of the stock in a transaction on Thursday, July 24th. The shares were purchased at an average price of $69.15 per share, with a total value of $207,450.00. Following the completion of the transaction, the chief operating officer directly owned 98,450 shares in the company, valued at $6,807,817.50. This represents a 3.14% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 2.16% of the stock is currently owned by company insiders.

RLI Company Profile

RLI Corp., an insurance holding company, underwrites property and casualty insurance. Its Casualty segment provides commercial and personal coverage products; and general liability products, such as coverage for third-party liability of commercial insureds, including manufacturers, contractors, apartments, and mercantile.