Deutsche Bank AG Purchases New Holdings in RLI Corp. $RLI

Key Points

• Deutsche Bank acquired 19,216 shares of RLI Corp. in the second quarter, valued at approximately $1.14 million. Institutional investors collectively own 77.89% of the insurer.
• RLI reported quarterly EPS of $0.83, exceeding estimates of $0.72, while revenue rose 15.2% year over year to $575.57 million. The company also maintained a quarterly dividend of $0.18 per share, yielding about 1.1%.
• Analyst sentiment remains mixed: price targets include $74 from Keefe, Bruyette & Woods and UBS, versus $53 from Jefferies. RLI’s consensus rating is “Reduce,” with an average target price of $63.20.

Deutsche Bank AG purchased a new stake in RLI Corp. (NYSE:RLI - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 19,216 shares of the insurance provider's stock, valued at approximately $1,135,000.

Other hedge funds have also added to or reduced their stakes in the company. Wasatch Advisors LP purchased a new position in RLI during the 2nd quarter worth $84,608,000. Norges Bank bought a new position in shares of RLI in the 4th quarter worth approximately $66,997,000. Bank of New York Mellon Corp bought a new stake in shares of RLI during the 2nd quarter valued at $46,855,000. Victory Capital Management Inc. lifted its holdings in shares of RLI by 6,060.1% during 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 during the last quarter. Finally, First Trust Advisors LP grew its stake in shares of RLI by 311.6% in the 1st quarter. First Trust Advisors LP now owns 688,318 shares of the insurance provider's stock worth $39,262,000 after buying an additional 521,096 shares during the last quarter. 77.89% of the stock is currently owned by institutional investors.

RLI Stock Performance

NYSE RLI opened at $64.38 on Monday. The business has a fifty day moving average price of $61.68 and a 200 day moving average price of $58.16. The company has a market cap of $5.91 billion, a P/E ratio of 13.53 and a beta of 0.38. RLI Corp. has a one year low of $47.26 and a one year high of $68.29.

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 (EPS) for the quarter, beating the consensus estimate of $0.72 by $0.11. The company had revenue of $575.57 million during the quarter, compared to analysts' expectations of $568.70 million. RLI had a net margin of 22.22% and a return on equity of 17.61%. RLI's revenue was up 15.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.82 EPS. As a group, sell-side analysts predict that RLI Corp. will post 2.88 EPS for the current fiscal year.

RLI Dividend Announcement

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

Wall Street Analyst Weigh In

Several research analysts have issued reports on the stock. Keefe, Bruyette & Woods reaffirmed an "outperform" rating and issued a $74.00 target price (up from $70.00) on shares of RLI in a report on Tuesday, July 28th. Jefferies Financial Group downgraded shares of RLI from a "hold" rating to an "underperform" rating and set a $53.00 price target on the stock. in a report on Tuesday, August 25th. UBS Group set a $74.00 price objective on RLI in a research note on Tuesday, July 28th. Weiss Ratings upgraded shares of RLI from a "sell (d+)" rating to a "hold (c-)" rating in a report on Wednesday, July 29th. Finally, Wall Street Zen upgraded RLI from a "sell" rating to a "hold" rating in a report on Saturday, August 1st. One investment analyst has rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, RLI presently has an average rating of "Reduce" and a consensus target price of $63.20.

About RLI

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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