Royce & Associates LP Raises Position in RLI Corp. $RLI

Key Points

• Royce & Associates LP boosted its stake in RLI Corp. by 18.4% in the fourth quarter, ending with 586,402 shares valued at about $37.5 million.
• RLI’s latest quarterly results topped earnings expectations, posting $0.83 EPS versus the $0.73 consensus, even though revenue came in below forecasts at $423.87 million.
• The company raised its quarterly dividend to $0.18 per share from $0.16, bringing the annualized payout to $0.72 and the dividend yield to about 1.4%.

Royce & Associates LP increased its holdings in RLI Corp. (NYSE:RLI - Free Report) by 18.4% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 586,402 shares of the insurance provider's stock after purchasing an additional 91,073 shares during the quarter. Royce & Associates LP owned 0.64% of RLI worth $37,518,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors also recently added to or reduced their stakes in the business. Hantz Financial Services Inc. raised its position in RLI by 242.1% in the 4th quarter. Hantz Financial Services Inc. now owns 9,626 shares of the insurance provider's stock worth $616,000 after purchasing an additional 6,812 shares during the period. Legato Capital Management LLC purchased a new position in RLI in the 4th quarter worth $526,000. Van Hulzen Asset Management LLC raised its position in RLI by 98.2% in the 4th quarter. Van Hulzen Asset Management LLC now owns 30,046 shares of the insurance provider's stock worth $1,922,000 after purchasing an additional 14,886 shares during the period. Global Retirement Partners LLC raised its position in RLI by 371.7% in the 4th quarter. Global Retirement Partners LLC now owns 1,368 shares of the insurance provider's stock worth $88,000 after purchasing an additional 1,078 shares during the period. Finally, IFP Advisors Inc raised its position in RLI by 85.9% in the 4th quarter. IFP Advisors Inc now owns 684 shares of the insurance provider's stock worth $44,000 after purchasing an additional 316 shares during the period. Hedge funds and other institutional investors own 77.89% of the company's stock.

Insider Activity

In related news, COO Jennifer L. Klobnak purchased 2,000 shares of RLI stock in a transaction that occurred on Tuesday, May 19th. The shares were bought at an average price of $53.42 per share, for a total transaction of $106,840.00. Following the completion of the transaction, the chief operating officer directly owned 102,318 shares of the company's stock, valued at $5,465,827.56. This represents a 1.99% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 2.39% of the stock is owned by corporate insiders.

RLI Price Performance

NYSE RLI opened at $52.56 on Tuesday. The stock has a market capitalization of $4.83 billion, a PE ratio of 12.28 and a beta of 0.42. RLI Corp. has a 1 year low of $47.26 and a 1 year high of $77.24. The business's 50-day moving average is $55.29 and its 200 day moving average is $59.57.

RLI (NYSE:RLI - Get Free Report) last posted its earnings results on Wednesday, April 22nd. The insurance provider reported $0.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.73 by $0.10. The company had revenue of $423.87 million for the quarter, compared to analysts' expectations of $564.47 million. RLI had a return on equity of 17.72% and a net margin of 20.81%.RLI's quarterly revenue was up 4.0% on a year-over-year basis. During the same period last year, the firm earned $0.92 earnings per share. As a group, equities research analysts anticipate that RLI Corp. will post 2.7 earnings per share for the current year.

RLI Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 12th. Investors of record on Friday, May 29th will be given a dividend of $0.18 per share. This is an increase from RLI's previous quarterly dividend of $0.16. This represents a $0.72 annualized dividend and a dividend yield of 1.4%. The ex-dividend date is Friday, May 29th. RLI's dividend payout ratio is presently 14.95%.

Analysts Set New Price Targets

RLI has been the topic of a number of analyst reports. Weiss Ratings cut shares of RLI from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday. Wells Fargo & Company decreased their price objective on shares of RLI from $59.00 to $55.00 and set an "equal weight" rating on the stock in a research report on Thursday, April 9th. Zacks Research upgraded shares of RLI from a "strong sell" rating to a "hold" rating in a research report on Thursday, April 2nd. Wall Street Zen lowered shares of RLI from a "hold" rating to a "sell" rating in a report on Saturday, May 2nd. Finally, Keefe, Bruyette & Woods raised RLI from a "moderate buy" rating to a "strong-buy" rating in a research note on Tuesday, February 24th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, RLI presently 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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