Hsbc Holdings PLC Raises Stock Position in RLI Corp. $RLI

Key Points

• Hsbc Holdings PLC increased its stake in RLI Corp. by 255.2% in Q1, acquiring an additional 8,134 shares to reach a total of 11,321 shares valued at approximately $909,000.
• RLI Corp. reported earnings of $0.84 per share for its last quarter, exceeding analysts' expectations and showing a 20% increase in revenue year-over-year.
• The company announced a quarterly dividend of $0.16, with an annualized yield of 0.9%, and has a payout ratio of 18.34%.

Hsbc Holdings PLC lifted its holdings in RLI Corp. (NYSE:RLI - Free Report) by 255.2% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 11,321 shares of the insurance provider's stock after purchasing an additional 8,134 shares during the quarter. Hsbc Holdings PLC's holdings in RLI were worth $909,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also recently modified their holdings of the business. Golden State Wealth Management LLC grew its holdings in RLI by 100.0% during the first quarter. Golden State Wealth Management LLC now owns 372 shares of the insurance provider's stock valued at $30,000 after purchasing an additional 186 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. boosted its stake in RLI by 100.0% during the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 396 shares of the insurance provider's stock valued at $32,000 after buying an additional 198 shares during the last quarter. Versant Capital Management Inc raised its position in RLI by 100.0% during the first quarter. Versant Capital Management Inc now owns 406 shares of the insurance provider's stock valued at $33,000 after purchasing an additional 203 shares during the period. Farther Finance Advisors LLC raised its position in RLI by 88.5% during the first quarter. Farther Finance Advisors LLC now owns 477 shares of the insurance provider's stock valued at $38,000 after purchasing an additional 224 shares during the period. Finally, Compass Wealth Management LLC raised its position in RLI by 100.0% during the first quarter. Compass Wealth Management LLC now owns 480 shares of the insurance provider's stock valued at $39,000 after purchasing an additional 240 shares during the period. Hedge funds and other institutional investors own 77.89% of the company's stock.

Insider Buying and Selling

In other RLI news, COO Jennifer L. Klobnak bought 3,000 shares of the company's stock in a transaction that occurred 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 acquisition, the chief operating officer directly owned 98,450 shares of the company's stock, valued at $6,807,817.50. This represents a 3.14% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 2.16% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

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

RLI Trading Up 0.1%

NYSE:RLI traded up $0.05 during trading hours on Thursday, reaching $67.22. 158,247 shares of the stock were exchanged, compared to its average volume of 512,716. 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 has a 50-day moving average of $68.63 and a two-hundred day moving average of $73.08. RLI Corp. has a twelve month low of $65.14 and a twelve month high of $91.14. The company has a market capitalization of $6.17 billion, a price-to-earnings ratio of 19.26 and a beta of 0.65.

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

RLI Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 19th. Investors of record on Friday, August 29th will be issued a $0.16 dividend. This represents a $0.64 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Friday, August 29th. RLI's dividend payout ratio is 18.34%.

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.