RLI Corp. $RLI Shares Acquired by Argent Capital Management LLC

Key Points

• Argent Capital Management increased its RLI stake by 233.6% in the first quarter, acquiring 262,218 additional shares for a total of 374,447 shares worth approximately $21.4 million. Institutional investors collectively own 77.89% of RLI.
• RLI reported quarterly earnings of $0.83 per share, exceeding the $0.72 consensus estimate, while revenue rose 15.2% year over year to $575.57 million. The company also raised its quarterly dividend from $0.16 to $0.18 per share.
• Analyst sentiment remains mixed, with RLI carrying a consensus “Hold” rating and an average price target of $63.00; targets range from $57.00 to $74.00. RLI shares recently opened at $61.31.

Argent Capital Management LLC lifted its stake in RLI Corp. (NYSE:RLI - Free Report) by 233.6% during the 1st quarter, according to the company in its most recent filing with the SEC. The fund owned 374,447 shares of the insurance provider's stock after acquiring an additional 262,218 shares during the quarter. Argent Capital Management LLC owned 0.41% of RLI worth $21,358,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently made changes to their positions in the stock. UBS Group AG boosted its holdings in shares of RLI by 8.7% in the fourth 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 during the period. SG Americas Securities LLC lifted its holdings in RLI by 1,030.2% during the 4th quarter. SG Americas Securities LLC now owns 34,009 shares of the insurance provider's stock worth $2,176,000 after purchasing an additional 31,000 shares in the last quarter. Chase Investment Counsel Corp bought a new position in RLI in the 4th quarter worth about $1,535,000. Wasatch Advisors LP grew its holdings in RLI by 33.1% during the 1st quarter. Wasatch Advisors LP now owns 2,579,955 shares of the insurance provider's stock valued at $147,161,000 after buying an additional 641,769 shares in the last quarter. Finally, Vanguard Group Inc. increased its position in shares of RLI by 3.4% during the fourth quarter. Vanguard Group Inc. now owns 9,448,929 shares of the insurance provider's stock valued at $604,542,000 after buying an additional 310,857 shares during the period. Hedge funds and other institutional investors own 77.89% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on RLI shares. Keefe, Bruyette & Woods reissued an "outperform" rating and issued a $74.00 price target (up from $70.00) on shares of RLI in a report on Tuesday. Wells Fargo & Company cut shares of RLI from an "equal weight" rating to an "underweight" rating and set a $57.00 target price on the stock. in a research note on Wednesday. Wall Street Zen raised shares of RLI from a "sell" rating to a "hold" rating in a report on Saturday. UBS Group set a $74.00 price target on shares of RLI in a research report on Tuesday. Finally, Weiss Ratings raised RLI from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday. One research analyst has rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, RLI currently has an average rating of "Hold" and a consensus price target of $63.00.

RLI Stock Performance

Shares of RLI stock opened at $61.31 on Friday. RLI Corp. has a fifty-two week low of $47.26 and a fifty-two week high of $69.19. The firm has a market cap of $5.63 billion, a P/E ratio of 12.88 and a beta of 0.38. The business's 50 day moving average price is $57.04 and its 200-day moving average price is $57.49.

RLI (NYSE:RLI - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The insurance provider reported $0.83 EPS for the quarter, topping analysts' consensus estimates of $0.72 by $0.11. RLI had a return on equity of 17.61% and a net margin of 22.22%.The company had revenue of $575.57 million during the quarter, compared to analyst estimates of $568.70 million. During the same quarter last year, the firm posted $0.82 earnings per share. The firm's revenue was up 15.2% on a year-over-year basis. As a group, equities analysts predict that RLI Corp. will post 2.85 EPS for the current year.

RLI Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Friday, May 29th were given a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend was Friday, May 29th. This is a positive change from RLI's previous quarterly dividend of $0.16. RLI's payout ratio is presently 15.13%.

Insider Transactions at RLI

In related news, Director David B. Duclos acquired 2,500 shares of RLI stock in a transaction that occurred on Thursday, May 28th. The stock was bought at an average price of $51.99 per share, with a total value of $129,975.00. Following the transaction, the director directly owned 9,780 shares in the company, valued at approximately $508,462.20. This represents a 34.34% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CEO Craig W. Kliethermes purchased 5,000 shares of the stock in a transaction dated Thursday, May 21st. The stock was bought at an average cost of $52.00 per share, with a total value of $260,000.00. Following the transaction, the chief executive officer owned 148,990 shares in the company, valued at $7,747,480. The trade was a 3.47% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have bought a total of 16,500 shares of company stock worth $858,955 over the last quarter. Insiders own 2.39% of the company's stock.

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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