Hsbc Holdings PLC Makes New Investment in RLI Corp. $RLI

Key Points

• Hsbc Holdings PLC initiated a position in RLI during the second quarter, buying 25,295 shares valued at approximately $1.49 million. Institutional investors and hedge funds collectively own 77.89% of the company.
• Analyst sentiment is cautious: RLI has an average “Reduce” rating and a consensus price target of $63.20, with recent downgrades from Jefferies and Wells Fargo offset by an upgraded target from Keefe, Bruyette & Woods.
• RLI reported stronger-than-expected quarterly results, with earnings of $0.83 per share and revenue of $575.57 million, while revenue increased 15.2% year over year. The company also declared a quarterly dividend of $0.18 per share, equivalent to a 1.1% annual yield.

Hsbc Holdings PLC purchased a new position in RLI Corp. (NYSE:RLI - Free Report) during the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 25,295 shares of the insurance provider's stock, valued at approximately $1,492,000.

Other large investors have also recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in RLI in the 2nd quarter valued at about $492,175,000. Wasatch Advisors LP acquired a new stake in shares of RLI in the second quarter worth approximately $84,608,000. Norges Bank acquired a new stake in shares of RLI in the fourth quarter worth approximately $66,997,000. Bank of New York Mellon Corp purchased a new stake in RLI in the second quarter valued at approximately $46,855,000. Finally, Victory Capital Management Inc. increased its position in RLI by 6,060.1% during the fourth quarter. Victory Capital Management Inc. now owns 739,709 shares of the insurance provider's stock worth $47,327,000 after purchasing an additional 727,701 shares during the last quarter. 77.89% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

RLI has been the subject of a number of research analyst reports. Jefferies Financial Group downgraded RLI from a "hold" rating to an "underperform" rating and set a $53.00 price objective for the company. in a report on Tuesday, August 25th. Keefe, Bruyette & Woods reissued an "outperform" rating and set a $74.00 price target (up from $70.00) on shares of RLI in a research report on Tuesday, July 28th. Weiss Ratings raised RLI from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday. Wells Fargo & Company lowered RLI from an "equal weight" rating to an "underweight" rating and set a $57.00 price target for the company. in a research note on Wednesday, July 29th. Finally, UBS Group set a $74.00 price objective on RLI in a report on Tuesday, July 28th. One equities research analyst has rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Reduce" and a consensus target price of $63.20.

RLI Stock Down 1.3%

RLI opened at $63.50 on Tuesday. The firm's 50 day moving average is $61.89 and its 200-day moving average is $58.17. RLI Corp. has a 52-week low of $47.26 and a 52-week high of $68.29. The firm has a market capitalization of $5.83 billion, a P/E ratio of 13.34 and a beta of 0.38.

RLI (NYSE:RLI - Get Free Report) last announced its earnings results on Wednesday, July 22nd. The insurance provider reported $0.83 earnings per share for the quarter, beating the consensus estimate of $0.72 by $0.11. RLI had a net margin of 22.22% and a return on equity of 17.61%. The business had revenue of $575.57 million during the quarter, compared to the consensus estimate of $568.70 million. During the same period in the prior year, the firm earned $0.82 earnings per share. The business's quarterly revenue was up 15.2% compared to the same quarter last year. Equities analysts expect that RLI Corp. will post 2.88 earnings per share for the current fiscal year.

RLI Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Monday, August 31st will be given a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend is Monday, August 31st. RLI's dividend payout ratio is presently 15.13%.

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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