RLI (NYSE:RLI) Downgraded to Sell Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded RLI from “hold” to “sell”, even though the broader analyst view remains more neutral. MarketBeat says the stock’s consensus rating is still Hold with a $60.50 average price target.
• RLI recently reported better-than-expected EPS of $0.83 versus the $0.73 forecast, but revenue came in below estimates at $423.87 million versus $564.47 million. The company also posted a 17.72% return on equity and 20.81% net margin.
• Insider buying has been notable, with the COO and CEO each purchasing 2,000 shares in May. In the last 90 days, insiders bought 16,500 shares total, while hedge funds and other institutions own 77.89% of the stock.

RLI (NYSE:RLI - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued on Monday.

RLI has been the topic of a number of other research reports. Wells Fargo & Company increased their price target on shares of RLI from $55.00 to $62.00 and gave the company an "equal weight" rating in a report on Thursday, July 9th. Keefe, Bruyette & Woods boosted their price objective on shares of RLI from $67.00 to $70.00 and gave the stock an "outperform" rating in a report on Wednesday, July 8th. Zacks Research raised RLI from a "strong sell" rating to a "hold" rating in a research report on Thursday, April 2nd. Finally, Weiss Ratings downgraded RLI from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, May 22nd. One investment analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, RLI currently has an average rating of "Hold" and a consensus target price of $60.50.

RLI Price Performance

Shares of NYSE RLI opened at $61.40 on Monday. RLI has a 1 year low of $47.26 and a 1 year high of $71.11. The firm has a 50-day moving average of $54.78 and a 200 day moving average of $57.46. The stock has a market cap of $5.65 billion, a P/E ratio of 14.35 and a beta of 0.38.

RLI (NYSE:RLI - Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The insurance provider reported $0.83 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.73 by $0.10. The business had revenue of $423.87 million during 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%.The firm's quarterly revenue was up 4.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.92 earnings per share. Research analysts expect that RLI will post 2.75 earnings per share for the current fiscal year.

Insider Activity at RLI

In related news, COO Jennifer L. Klobnak acquired 2,000 shares of the firm's stock in a transaction dated Wednesday, May 27th. The stock was purchased at an average cost of $52.72 per share, with a total value of $105,440.00. Following the completion of the acquisition, the chief operating officer directly owned 104,318 shares of the company's stock, valued at approximately $5,499,644.96. This trade represents a 1.95% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Craig W. Kliethermes acquired 2,000 shares of the stock in a transaction that occurred on Wednesday, May 27th. The shares were bought at an average price of $52.00 per share, for a total transaction of $104,000.00. Following the transaction, the chief executive officer owned 150,990 shares of the company's stock, valued at $7,851,480. This trade represents a 1.34% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last 90 days, insiders bought 16,500 shares of company stock worth $858,955. 2.39% of the stock is owned by insiders.

Institutional Investors Weigh In On RLI

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Farther Finance Advisors LLC lifted its holdings in shares of RLI by 94.4% during the 4th quarter. Farther Finance Advisors LLC now owns 414 shares of the insurance provider's stock valued at $26,000 after buying an additional 201 shares during the period. Northwestern Mutual Wealth Management Co. grew its holdings in shares of RLI by 156.4% in the third 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 period. MassMutual Private Wealth & Trust FSB grew its holdings in shares of RLI by 72.1% in the fourth quarter. MassMutual Private Wealth & Trust FSB now owns 618 shares of the insurance provider's stock worth $40,000 after acquiring an additional 259 shares during the period. Eagle Bay Advisors LLC purchased a new stake in RLI during the fourth quarter valued at $43,000. Finally, IFP Advisors Inc increased its position in RLI by 85.9% during the fourth quarter. IFP Advisors Inc now owns 684 shares of the insurance provider's stock valued at $44,000 after acquiring an additional 316 shares during the last quarter. Hedge funds and other institutional investors 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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