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

Key Points

• Analyst consensus is “Hold”: Five of seven brokerages rate RLI a hold, versus one sell and one buy. The average 12-month price target is $60.50, below the stock’s reported opening price of $64.07.
• RLI exceeded quarterly expectations: The insurer reported earnings of $0.83 per share against a $0.72 consensus estimate, while revenue rose 15.2% year over year to $575.57 million.
• The dividend was increased: RLI raised its quarterly payout from $0.16 to $0.18 per share, equivalent to an annualized dividend of $0.72 and a 1.1% yield. Insiders also purchased 16,500 shares worth roughly $858,955 over the past 90 days.

Shares of RLI Corp. (NYSE:RLI - Get Free Report) have earned a consensus recommendation of "Hold" from the seven brokerages that are currently covering the firm, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, five have given a hold recommendation and one has assigned a buy recommendation to the company. The average 1 year price target among brokers that have covered the stock in the last year is $60.50.

RLI has been the topic of a number of recent research reports. Keefe, Bruyette & Woods lifted their price objective on RLI from $67.00 to $70.00 and gave the company an "outperform" rating in a report on Wednesday, July 8th. Weiss Ratings cut RLI from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, May 22nd. Zacks Research upgraded RLI from a "strong sell" rating to a "hold" rating in a research report on Thursday, April 2nd. Wall Street Zen lowered RLI from a "hold" rating to a "sell" rating in a research note on Monday, July 20th. Finally, Wells Fargo & Company upped their price target on RLI from $55.00 to $62.00 and gave the company an "equal weight" rating in a research report on Thursday, July 9th.

RLI Price Performance

Shares of RLI stock opened at $64.07 on Tuesday. The firm has a market cap of $5.89 billion, a P/E ratio of 13.46 and a beta of 0.38. The firm's 50-day simple moving average is $56.18 and its 200-day simple moving average is $57.39. RLI has a twelve month low of $47.26 and a twelve month high of $69.19. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.37 and a current ratio of 0.35.

RLI (NYSE:RLI - Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The insurance provider reported $0.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.72 by $0.11. The firm had revenue of $575.57 million during the quarter, compared to analyst estimates of $568.70 million. RLI had a net margin of 22.22% and a return on equity of 17.61%. The company's quarterly revenue was up 15.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.82 earnings per share. As a group, research analysts expect that RLI will post 2.75 EPS for the current fiscal year.

RLI Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Friday, May 29th were paid a $0.18 dividend. The ex-dividend date was Friday, May 29th. This represents a $0.72 annualized dividend and a dividend yield of 1.1%. This is a boost from RLI's previous quarterly dividend of $0.16. RLI's dividend payout ratio is presently 15.13%.

Insider Activity

In other news, Director Clark C. Kellogg bought 3,000 shares of the stock in a transaction dated Monday, June 1st. The shares were acquired at an average price of $50.90 per share, with a total value of $152,700.00. Following the acquisition, the director owned 4,502 shares in the company, valued at $229,151.80. This trade represents a 199.73% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Craig W. Kliethermes bought 2,000 shares of the company's stock in a transaction that occurred on Wednesday, May 27th. The shares were purchased at an average price of $52.00 per share, with a total value of $104,000.00. Following the transaction, the chief executive officer directly owned 150,990 shares in the company, valued at $7,851,480. This represents a 1.34% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have purchased a total of 16,500 shares of company stock worth $858,955 over the last 90 days. 2.39% of the stock is currently owned by company insiders.

Institutional Trading of RLI

Hedge funds have recently modified their holdings of the company. Farther Finance Advisors LLC raised its stake in shares of RLI by 94.4% in the fourth quarter. Farther Finance Advisors LLC now owns 414 shares of the insurance provider's stock valued at $26,000 after acquiring an additional 201 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its position in RLI by 156.4% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 464 shares of the insurance provider's stock worth $30,000 after acquiring an additional 283 shares during the last quarter. Eagle Bay Advisors LLC bought a new stake in RLI during the 4th quarter worth approximately $43,000. IFP Advisors Inc increased its holdings in RLI by 85.9% during the 4th quarter. IFP Advisors Inc now owns 684 shares of the insurance provider's stock valued at $44,000 after purchasing an additional 316 shares in the last quarter. Finally, Advisory Services Network LLC acquired a new stake in RLI during the 3rd quarter valued at $47,000. Institutional investors and hedge funds own 77.89% 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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