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

Key Points

• Analysts rate RLI a consensus “Hold”: Of seven covering firms, five recommend holding, one recommends selling and one recommends buying. The average 12-month price target is $63, below the stock’s reported $65.47 opening price.
• RLI exceeded quarterly expectations, reporting earnings of $0.83 per share versus the $0.72 consensus estimate, while revenue rose 15.2% year over year to $575.57 million.
• The company declared a quarterly dividend of $0.18 per share, equivalent to an annualized $0.72 payout and a 1.1% yield; insiders have also purchased 9,500 shares worth about $492,115 over the past 90 days.

RLI Corp. (NYSE:RLI - Get Free Report) has been assigned an average rating of "Hold" from the seven ratings firms that are presently covering the stock, MarketBeat reports. One investment analyst has rated the stock with a sell recommendation, five have assigned a hold recommendation and one has issued a buy recommendation on the company. The average 1-year price objective among brokers that have covered the stock in the last year is $63.00.

A number of analysts have commented on RLI shares. Wall Street Zen raised shares of RLI from a "sell" rating to a "hold" rating in a report on Saturday, August 1st. Keefe, Bruyette & Woods reiterated an "outperform" rating and set a $74.00 target price (up from $70.00) on shares of RLI in a research report on Tuesday, July 28th. Weiss Ratings raised RLI from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday, July 29th. UBS Group set a $74.00 price target on RLI in a research report on Tuesday, July 28th. Finally, 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 research note on Wednesday, July 29th.

RLI Trading Up 0.6%

Shares of NYSE RLI opened at $65.47 on Friday. RLI has a 1 year low of $47.26 and a 1 year high of $69.19. The firm's 50-day moving average is $60.52 and its 200-day moving average is $58.02. The firm has a market capitalization of $6.01 billion, a PE ratio of 13.75 and a beta of 0.38.

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 for the quarter, topping analysts' consensus estimates of $0.72 by $0.11. RLI had a net margin of 22.22% and a return on equity of 17.61%. The business had revenue of $575.57 million during the quarter, compared to the consensus estimate of $568.70 million. During the same period in the previous year, the firm posted $0.82 earnings per share. RLI's revenue for the quarter was up 15.2% compared to the same quarter last year. As a group, equities research analysts anticipate that RLI will post 2.88 earnings per share for the current fiscal year.

RLI Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Monday, August 31st will be issued a dividend of $0.18 per share. The ex-dividend date is Monday, August 31st. This represents a $0.72 dividend on an annualized basis and a yield of 1.1%. RLI's dividend payout ratio (DPR) is 15.13%.

Insider Buying and Selling

In other news, Director Clark C. Kellogg purchased 3,000 shares of the business's stock in a transaction that occurred on Monday, June 1st. The shares were acquired at an average cost of $50.90 per share, for a total transaction 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. The trade was a 199.73% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this link. Also, CEO Craig W. Kliethermes purchased 2,000 shares of the business's stock in a transaction that occurred on Wednesday, May 27th. The stock was purchased at an average price of $52.00 per share, for a total transaction of $104,000.00. Following the completion of the transaction, the chief executive officer directly owned 150,990 shares in the company, valued at $7,851,480. This trade represents a 1.34% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have purchased a total of 9,500 shares of company stock valued at $492,115 over the last 90 days. 2.39% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On RLI

Several large investors have recently bought and sold shares of the company. Farther Finance Advisors LLC boosted its position in shares of RLI by 94.4% during the fourth quarter. Farther Finance Advisors LLC now owns 414 shares of the insurance provider's stock worth $26,000 after purchasing an additional 201 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its position in shares of RLI by 156.4% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 464 shares of the insurance provider's stock valued at $30,000 after buying an additional 283 shares in the last quarter. IFP Advisors Inc increased its position in shares of RLI by 85.9% in the 4th quarter. IFP Advisors Inc now owns 684 shares of the insurance provider's stock valued at $44,000 after buying an additional 316 shares in the last quarter. Advisory Services Network LLC bought a new stake in shares of RLI in the 3rd quarter valued at $47,000. Finally, Versant Capital Management Inc raised its stake in RLI by 28.5% during the 2nd quarter. Versant Capital Management Inc now owns 835 shares of the insurance provider's stock worth $49,000 after buying an additional 185 shares during the period. Institutional investors own 77.89% of the company's stock.

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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