Port Capital LLC Takes Position in RLI Corp. $RLI

Key Points

• Port Capital LLC acquired 1.35 million RLI shares worth approximately $79.5 million, giving it a 1.47% stake and making RLI its 12th-largest portfolio holding. Institutional investors collectively own 77.89% of the insurer.
• Analyst sentiment remains cautious: RLI has an average “Reduce” rating and a $63.20 price target, with ratings ranging from a $74 target and “outperform” view to “underperform” ratings with targets as low as $53.
• RLI reported quarterly EPS of $0.83, beating estimates by $0.11, while revenue rose 15.2% year over year to $575.57 million. The company also declared a quarterly dividend of $0.18 per share, representing a 1.1% yield.

Port Capital LLC acquired a new position in shares of RLI Corp. (NYSE:RLI - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 1,345,839 shares of the insurance provider's stock, valued at approximately $79,499,000. RLI makes up about 3.2% of Port Capital LLC's portfolio, making the stock its 12th largest holding. Port Capital LLC owned approximately 1.47% of RLI at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also made changes to their positions in RLI. UBS Group AG grew its stake in shares of RLI by 8.7% during the 4th quarter. UBS Group AG now owns 607,176 shares of the insurance provider's stock worth $38,847,000 after acquiring an additional 48,563 shares in the last quarter. Wasatch Advisors LP lifted its position in shares of RLI by 33.1% in the first quarter. Wasatch Advisors LP now owns 2,579,955 shares of the insurance provider's stock worth $147,161,000 after purchasing an additional 641,769 shares in the last quarter. Chase Investment Counsel Corp acquired a new position in RLI during the fourth quarter worth $1,535,000. Vanguard Group Inc. boosted its holdings in RLI by 3.4% during the fourth quarter. Vanguard Group Inc. now owns 9,448,929 shares of the insurance provider's stock worth $604,542,000 after purchasing an additional 310,857 shares during the last quarter. Finally, Royce & Associates LP grew its position in RLI by 18.4% in the fourth quarter. Royce & Associates LP now owns 586,402 shares of the insurance provider's stock valued at $37,518,000 after purchasing an additional 91,073 shares in the last quarter. 77.89% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several equities research analysts have commented on RLI shares. Wall Street Zen raised shares of RLI from a "sell" rating to a "hold" rating in a research report on Saturday, August 1st. Wells Fargo & Company cut RLI from an "equal weight" rating to an "underweight" rating and set a $57.00 price objective for the company. in a report on Wednesday, July 29th. Keefe, Bruyette & Woods reaffirmed an "outperform" rating and issued a $74.00 target price (up from $70.00) on shares of RLI in a research report on Tuesday, July 28th. UBS Group set a $74.00 target price on RLI in a report on Tuesday, July 28th. Finally, Jefferies Financial Group cut RLI from a "hold" rating to an "underperform" rating and set a $53.00 price target for the company. in a research report on Tuesday. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Reduce" and an average target price of $63.20.

Insider Buying and Selling at RLI

In other news, Director Clark C. Kellogg bought 3,000 shares of the firm's stock in a transaction that occurred on Monday, June 1st. The stock was acquired at an average cost of $50.90 per share, with a total value of $152,700.00. Following the transaction, the director directly owned 4,502 shares of the company's stock, valued at approximately $229,151.80. This represents a 199.73% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 2.39% of the stock is owned by corporate insiders.

RLI Stock Up 0.0%

RLI stock opened at $64.91 on Thursday. The company's 50-day moving average price is $61.24 and its two-hundred day moving average price is $58.12. The stock has a market cap of $5.96 billion, a P/E ratio of 13.64 and a beta of 0.38. RLI Corp. has a twelve month low of $47.26 and a twelve month high of $68.69.

RLI (NYSE:RLI - Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The insurance provider reported $0.83 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 return on equity of 17.61% and a net margin of 22.22%.The business's revenue was up 15.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.82 earnings per share. Equities analysts anticipate that RLI Corp. will post 2.88 earnings per share for the current fiscal year.

RLI Announces Dividend

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

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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