Geode Capital Management LLC Buys 67,025 Shares of RLI Corp. $RLI

Key Points

• Geode Capital Management increased its RLI Corp. stake by 3.2% in the fourth quarter, adding 67,025 shares and bringing its holdings to 2,191,891 shares worth about $140.3 million.
• RLI reported better-than-expected quarterly earnings of $0.83 per share, beating estimates by $0.10, while revenue rose 4% year over year to $423.87 million.
• The company raised its quarterly dividend from $0.16 to $0.18 per share, and recent insider buying by the CEO and COO suggests management confidence in the stock.

Geode Capital Management LLC boosted its stake in RLI Corp. (NYSE:RLI - Free Report) by 3.2% during the 4th quarter, according to the company in its most recent disclosure with the SEC. The firm owned 2,191,891 shares of the insurance provider's stock after acquiring an additional 67,025 shares during the period. Geode Capital Management LLC owned 2.39% of RLI worth $140,260,000 as of its most recent filing with the SEC.

Several other hedge funds have also added to or reduced their stakes in RLI. Wasatch Advisors LP bought a new stake in RLI in the second quarter worth about $84,608,000. Two Sigma Investments LP raised its position in RLI by 353.1% in the third quarter. Two Sigma Investments LP now owns 446,378 shares of the insurance provider's stock worth $29,113,000 after acquiring an additional 347,858 shares during the period. Vanguard Group Inc. raised its position in RLI by 3.4% in the fourth quarter. Vanguard Group Inc. now owns 9,448,929 shares of the insurance provider's stock worth $604,542,000 after acquiring an additional 310,857 shares during the period. UBS Group AG raised its position in RLI by 102.7% in the third quarter. UBS Group AG now owns 558,613 shares of the insurance provider's stock worth $36,433,000 after acquiring an additional 283,083 shares during the period. Finally, State Street Corp raised its position in RLI by 3.3% in the third quarter. State Street Corp now owns 8,750,315 shares of the insurance provider's stock worth $570,696,000 after acquiring an additional 279,983 shares during the period. Institutional investors own 77.89% of the company's stock.

RLI Stock Up 0.6%

RLI opened at $50.36 on Friday. The company has a market capitalization of $4.63 billion, a price-to-earnings ratio of 11.77 and a beta of 0.41. The firm has a 50-day moving average price of $53.96 and a 200-day moving average price of $58.96. RLI Corp. has a twelve month low of $47.26 and a twelve month high of $76.41.

RLI (NYSE:RLI - Get Free Report) last posted its earnings results on Wednesday, April 22nd. The insurance provider reported $0.83 earnings per share for the quarter, topping the consensus estimate of $0.73 by $0.10. The firm had revenue of $423.87 million during the quarter, compared to the consensus estimate of $564.47 million. RLI had a net margin of 20.81% and a return on equity of 17.72%. The company's revenue was up 4.0% on a year-over-year basis. During the same quarter last year, the company earned $0.92 earnings per share. On average, sell-side analysts expect that RLI Corp. will post 2.75 earnings per share for the current fiscal year.

RLI Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 12th. Stockholders of record on Friday, May 29th will be paid a $0.18 dividend. The ex-dividend date is Friday, May 29th. This is a positive change from RLI's previous quarterly dividend of $0.16. This represents a $0.72 annualized dividend and a dividend yield of 1.4%. RLI's dividend payout ratio is 16.82%.

Wall Street Analyst Weigh In

Several analysts have commented on the stock. Wall Street Zen lowered shares of RLI from a "hold" rating to a "sell" rating in a research report on Saturday, May 2nd. Weiss Ratings lowered shares of RLI from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, May 22nd. Zacks Research raised shares of RLI from a "strong sell" rating to a "hold" rating in a research report on Thursday, April 2nd. Keefe, Bruyette & Woods upgraded shares of RLI from a "moderate buy" rating to a "strong-buy" rating in a research note on Tuesday, February 24th. Finally, Wells Fargo & Company reduced their target price on shares of RLI from $59.00 to $55.00 and set an "equal weight" rating for the company in a research note on Thursday, April 9th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $61.50.

Insider Buying and Selling

In related news, CEO Craig W. Kliethermes purchased 2,000 shares of the firm's stock in a transaction dated Wednesday, May 27th. The shares were purchased at an average cost of $52.00 per share, for a total transaction of $104,000.00. Following the completion of the transaction, 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. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, COO Jennifer L. Klobnak purchased 2,000 shares of the firm's stock in a transaction dated Wednesday, May 27th. The shares were bought at an average price of $52.72 per share, for a total transaction of $105,440.00. Following the completion of the transaction, the chief operating officer owned 104,318 shares of the company's stock, valued at approximately $5,499,644.96. This trade represents a 1.95% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders have bought 16,500 shares of company stock valued at $858,955. Corporate insiders own 2.39% of the company's stock.

RLI 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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