Global Alpha Capital Management Ltd. Lowers Position in RLI Corp. $RLI

Key Points

• Global Alpha Capital Management cut its RLI Corp. stake by 6.7% in the fourth quarter, selling 31,037 shares and ending with 433,449 shares valued at about $27.7 million.
• RLI reported better-than-expected earnings of $0.83 per share in its latest quarter, though revenue came in below estimates; the company also posted 4% year-over-year revenue growth.
• The company raised its quarterly dividend to $0.18 per share from $0.16, and insiders have been buying shares, including the CEO and a director in recent weeks.

Global Alpha Capital Management Ltd. reduced its stake in RLI Corp. (NYSE:RLI - Free Report) by 6.7% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 433,449 shares of the insurance provider's stock after selling 31,037 shares during the quarter. RLI makes up 1.7% of Global Alpha Capital Management Ltd.'s investment portfolio, making the stock its 29th largest holding. Global Alpha Capital Management Ltd. owned 0.47% of RLI worth $27,732,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also bought and sold shares of the company. Vanguard Group Inc. increased its position in shares of 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 last quarter. State Street Corp increased its position in shares of RLI by 3.3% during the 3rd quarter. State Street Corp now owns 8,750,315 shares of the insurance provider's stock valued at $570,696,000 after purchasing an additional 279,983 shares during the last quarter. Geode Capital Management LLC increased its position in shares of RLI by 3.2% during the 4th quarter. Geode Capital Management LLC now owns 2,191,891 shares of the insurance provider's stock valued at $140,260,000 after purchasing an additional 67,025 shares during the last quarter. JPMorgan Chase & Co. increased its position in shares of RLI by 15.5% during the 3rd quarter. JPMorgan Chase & Co. now owns 1,422,596 shares of the insurance provider's stock valued at $92,782,000 after purchasing an additional 191,020 shares during the last quarter. Finally, Van Berkom & Associates Inc. increased its position in shares of RLI by 3.2% during the 4th quarter. Van Berkom & Associates Inc. now owns 1,268,778 shares of the insurance provider's stock valued at $81,176,000 after purchasing an additional 39,129 shares during the last quarter. 77.89% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at RLI

In other news, Director Clark C. Kellogg purchased 3,000 shares of the business's stock in a transaction dated Monday, June 1st. The stock was bought at an average price of $50.90 per share, for a total transaction of $152,700.00. Following the purchase, the director owned 4,502 shares of the company's stock, valued at $229,151.80. The trade was a 199.73% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Craig W. Kliethermes purchased 5,000 shares of the business's stock in a transaction dated Thursday, May 21st. The shares were purchased at an average price of $52.00 per share, with a total value of $260,000.00. Following the purchase, the chief executive officer directly owned 148,990 shares in the company, valued at $7,747,480. This trade represents a 3.47% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have purchased a total of 16,500 shares of company stock worth $858,955 over the last 90 days. 2.39% of the stock is owned by insiders.

RLI Stock Performance

RLI stock opened at $52.43 on Friday. The company has a market capitalization of $4.82 billion, a price-to-earnings ratio of 12.25 and a beta of 0.41. RLI Corp. has a fifty-two week low of $47.26 and a fifty-two week high of $76.41. The stock has a fifty day moving average of $53.86 and a 200-day moving average of $58.91.

RLI (NYSE:RLI - Get Free Report) last posted its quarterly 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 company had revenue of $423.87 million during the quarter, compared to the consensus estimate of $564.47 million. RLI had a return on equity of 17.72% and a net margin of 20.81%.The firm's quarterly revenue was up 4.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.92 EPS. Equities analysts predict that RLI Corp. will post 2.75 EPS for the current year.

RLI Increases Dividend

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

Wall Street Analyst Weigh In

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

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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