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

Key Points

• RLI Corp. has received a consensus rating of "Hold" from seven research firms, with one analyst rating the stock as a sell, four as hold, and two as buy.
• The company recently reported quarterly earnings of $0.84 per share, exceeding analysts' expectations, with revenue of $562.28 million, a 20% increase year-over-year.
• RLI announced a dividend increase to $0.16 per share, resulting in an annual yield of 1.0%, with a payout ratio of 18.34%.

Shares of RLI Corp. (NYSE:RLI - Get Free Report) have been assigned a consensus rating of "Hold" from the seven research firms that are currently covering the stock, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, four have issued a hold rating and two have given a buy rating to the company. The average 1-year target price among brokers that have issued ratings on the stock in the last year is $78.60.

A number of research firms recently weighed in on RLI. Compass Point downgraded RLI from a "strong-buy" rating to a "hold" rating in a report on Friday, April 25th. Wall Street Zen raised shares of RLI from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th. Finally, JMP Securities reaffirmed a "market perform" rating on shares of RLI in a research report on Thursday, April 24th.

RLI Stock Performance

NYSE RLI opened at $66.39 on Tuesday. The company has a market capitalization of $6.10 billion, a price-to-earnings ratio of 19.02 and a beta of 0.66. RLI has a twelve month low of $65.14 and a twelve month high of $91.14. The stock has a fifty day simple moving average of $70.64 and a 200 day simple moving average of $73.94. The company has a quick ratio of 0.35, a current ratio of 0.35 and a debt-to-equity ratio of 0.06.

RLI (NYSE:RLI - Get Free Report) last posted its quarterly earnings data on Monday, July 21st. The insurance provider reported $0.84 earnings per share for the quarter, beating analysts' consensus estimates of $0.75 by $0.09. The business had revenue of $562.28 million during the quarter, compared to the consensus estimate of $445.55 million. RLI had a return on equity of 15.82% and a net margin of 17.81%. RLI's quarterly revenue was up 20.0% on a year-over-year basis. During the same period in the prior year, the business posted $1.72 earnings per share. Sell-side analysts expect that RLI will post 3.08 EPS for the current year.

RLI Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, June 20th. Shareholders of record on Friday, May 30th were given a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a yield of 1.0%. This is an increase from RLI's previous quarterly dividend of $0.15. The ex-dividend date of this dividend was Friday, May 30th. RLI's payout ratio is currently 18.34%.

Insider Buying and Selling

In related news, COO Jennifer L. Klobnak acquired 3,000 shares of the business's stock in a transaction dated Thursday, July 24th. The shares were bought at an average price of $69.15 per share, with a total value of $207,450.00. Following the transaction, the chief operating officer directly owned 98,450 shares of the company's stock, valued at $6,807,817.50. This trade represents a 3.14% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Company insiders own 2.16% of the company's stock.

Hedge Funds Weigh In On RLI

Institutional investors and hedge funds have recently made changes to their positions in the stock. Caitong International Asset Management Co. Ltd boosted its position in shares of RLI by 7,300.0% during the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 370 shares of the insurance provider's stock worth $27,000 after purchasing an additional 365 shares in the last quarter. Golden State Wealth Management LLC boosted its position in shares of RLI by 100.0% during the 1st quarter. Golden State Wealth Management LLC now owns 372 shares of the insurance provider's stock worth $30,000 after purchasing an additional 186 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. boosted its position in shares of RLI by 100.0% during the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 396 shares of the insurance provider's stock worth $32,000 after purchasing an additional 198 shares in the last quarter. Chung Wu Investment Group LLC bought a new position in shares of RLI during the 2nd quarter worth about $29,000. Finally, Versant Capital Management Inc boosted its position in shares of RLI by 100.0% during the 1st quarter. Versant Capital Management Inc now owns 406 shares of the insurance provider's stock worth $33,000 after purchasing an additional 203 shares in the last quarter. Institutional investors own 77.89% of the company's stock.

About RLI

RLI Corp., an insurance holding company, underwrites property and casualty insurance. Its Casualty segment provides commercial and personal coverage products; and general liability products, such as coverage for third-party liability of commercial insureds, including manufacturers, contractors, apartments, and mercantile.

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