RLI Corp. (NYSE:RLI) Receives Average Rating of "Hold" from Analysts

Key Points

• Analysts rate RLI a “Hold” overall, based on coverage from seven brokerages. The average 12-month price target is $61.50, with one sell, five hold, and one strong buy rating.
• Insiders have been buying shares, including a director and the CEO, with 16,500 shares purchased over the past 90 days. Insider ownership stands at 2.39% of the company.
• RLI raised its quarterly dividend to $0.18 per share from $0.16, implying an annualized payout of $0.72 and a 1.4% yield. The company also recently beat quarterly EPS estimates, though revenue came in below forecasts.

RLI Corp. (NYSE:RLI - Get Free Report) has been given a consensus rating of "Hold" by the seven brokerages that are covering the company, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation, five have issued a hold recommendation and one has given a strong buy recommendation to the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $61.50.

RLI has been the topic of several recent research reports. Weiss Ratings downgraded RLI from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, May 22nd. Wall Street Zen downgraded RLI from a "hold" rating to a "sell" rating in a research note on Saturday, May 2nd. Keefe, Bruyette & Woods raised RLI from a "moderate buy" rating to a "strong-buy" rating in a research note on Tuesday, February 24th. Wells Fargo & Company dropped their price target on RLI from $59.00 to $55.00 and set an "equal weight" rating on the stock in a research note on Thursday, April 9th. Finally, Zacks Research raised RLI from a "strong sell" rating to a "hold" rating in a research report on Thursday, April 2nd.

Insiders Place Their Bets

In other RLI news, Director Clark C. Kellogg purchased 3,000 shares of RLI stock in a transaction that occurred on Monday, June 1st. The stock was acquired at an average price of $50.90 per share, for a total transaction of $152,700.00. Following the completion of the acquisition, the director owned 4,502 shares of the company's stock, valued at approximately $229,151.80. This trade represents a 199.73% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Craig W. Kliethermes purchased 5,000 shares of RLI stock in a transaction that occurred on Thursday, May 21st. The shares were acquired at an average price of $52.00 per share, with a total value of $260,000.00. Following the acquisition, the chief executive officer directly owned 148,990 shares of the company's stock, valued at $7,747,480. This trade represents a 3.47% increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders have acquired 16,500 shares of company stock worth $858,955. Company insiders own 2.39% of the company's stock.

Hedge Funds Weigh In On RLI

Several institutional investors and hedge funds have recently made changes to their positions in RLI. Wasatch Advisors LP acquired a new position in shares of RLI in the second quarter valued at approximately $84,608,000. Norges Bank acquired a new position in shares of RLI in the fourth quarter valued at approximately $66,997,000. Victory Capital Management Inc. grew its position in shares of RLI by 6,060.1% in the fourth quarter. Victory Capital Management Inc. now owns 739,709 shares of the insurance provider's stock valued at $47,327,000 after purchasing an additional 727,701 shares during the last quarter. First Trust Advisors LP grew its position in shares of RLI by 311.6% in the first quarter. First Trust Advisors LP now owns 688,318 shares of the insurance provider's stock valued at $39,262,000 after purchasing an additional 521,096 shares during the last quarter. Finally, Bank of Montreal Can grew its position in shares of RLI by 3,664.4% in the fourth quarter. Bank of Montreal Can now owns 368,384 shares of the insurance provider's stock valued at $23,569,000 after purchasing an additional 358,598 shares during the last quarter. Institutional investors and hedge funds own 77.89% of the company's stock.

RLI Price Performance

RLI opened at $52.43 on Monday. The business's 50-day moving average price is $53.86 and its two-hundred day moving average price is $58.88. RLI has a 1 year low of $47.26 and a 1 year high of $76.41. The company has a market capitalization of $4.82 billion, a price-to-earnings ratio of 12.25 and a beta of 0.41.

RLI (NYSE:RLI - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The insurance provider reported $0.83 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.73 by $0.10. RLI had a return on equity of 17.72% and a net margin of 20.81%.The firm had revenue of $423.87 million for the quarter, compared to the consensus estimate of $564.47 million. During the same quarter last year, the business posted $0.92 EPS. The company's revenue for the quarter was up 4.0% on a year-over-year basis. Sell-side analysts anticipate that RLI will post 2.75 earnings per share for the current fiscal year.

RLI Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 12th. Investors of record on Friday, May 29th will be given a $0.18 dividend. This is an increase from RLI's previous quarterly dividend of $0.16. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend is Friday, May 29th. RLI's dividend payout ratio (DPR) is presently 16.82%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.