RLI (NYSE:RLI) Reaches New 52-Week Low - What's Next?

Key Points

• RLI Corp.'s stock hit a new 52-week low at $66.98 during trading on Monday, closing at $67.10 with a trading volume of 40,493 shares.
• Analysts have revised their price targets, with Keefe, Bruyette & Woods lowering RLI's target from $95.00 to $85.00, and the overall consensus rating is currently a "Hold."
• The company reported a 20% year-over-year revenue increase of $562.28 million, with an EPS of $0.84, surpassing analysts' expectations.

RLI Corp. (NYSE:RLI - Get Free Report)'s stock price hit a new 52-week low on Monday . The stock traded as low as $66.98 and last traded at $67.10, with a volume of 40493 shares changing hands. The stock had previously closed at $67.78.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on RLI. Keefe, Bruyette & Woods cut their price objective on shares of RLI from $95.00 to $85.00 and set an "outperform" rating on the stock in a research report on Wednesday, April 9th. Compass Point downgraded shares of RLI from a "strong-buy" rating to a "hold" rating in a research note on Friday, April 25th. Wall Street Zen upgraded shares of RLI from a "sell" rating to a "hold" rating in a research note on Saturday, July 26th. Finally, JMP Securities reiterated a "market perform" rating on shares of RLI in a research note on Thursday, April 24th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and two have assigned a buy rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and an average target price of $78.60.

RLI Stock Performance

The company has a market cap of $6.06 billion, a PE ratio of 18.91 and a beta of 0.67. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.35 and a quick ratio of 0.35. The business has a 50-day moving average of $72.09 and a 200 day moving average of $74.50.

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

RLI Increases Dividend

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

Insider Buying and Selling

In related news, COO Jennifer L. Klobnak purchased 3,000 shares of RLI stock in a transaction on Thursday, July 24th. The stock was acquired at an average price of $69.15 per share, for a total transaction of $207,450.00. Following the completion of the transaction, the chief operating officer directly owned 98,450 shares in the company, valued at $6,807,817.50. This represents a 3.14% increase in their position. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 2.16% of the stock is currently owned by insiders.

Institutional Trading of RLI

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd boosted its stake in shares of RLI by 7,300.0% in the second quarter. Caitong International Asset Management Co. Ltd now owns 370 shares of the insurance provider's stock worth $27,000 after acquiring an additional 365 shares during the period. Chung Wu Investment Group LLC bought a new position in shares of RLI in the second quarter worth about $29,000. Golden State Wealth Management LLC boosted its stake in shares of RLI by 100.0% in the first quarter. Golden State Wealth Management LLC now owns 372 shares of the insurance provider's stock worth $30,000 after acquiring an additional 186 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. boosted its stake in shares of RLI by 100.0% in the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 396 shares of the insurance provider's stock worth $32,000 after acquiring an additional 198 shares during the period. Finally, Versant Capital Management Inc boosted its stake in shares of RLI by 100.0% in the first quarter. Versant Capital Management Inc now owns 406 shares of the insurance provider's stock worth $33,000 after acquiring an additional 203 shares during the period. Hedge funds and other 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.