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

Key Points

• Wall Street Zen downgraded RLI from a "hold" to a "sell" in a research report issued on Saturday.
• The analyst consensus remains an average "Hold" rating with a consensus target price of $61.50 (one Strong Buy, six Holds).
• RLI reported Q1 EPS of $0.83 (beat by $0.10) but revenue of $423.87M missed the $564.47M estimate; the stock opened at $51.54, trades near its 52-week low, and has a P/E of 12.04.

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

Several other brokerages have also recently weighed in on RLI. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of RLI in a research note on Thursday, April 2nd. Jefferies Financial Group raised shares of RLI from an "underperform" rating to a "hold" rating and set a $52.00 price target for the company in a research note on Friday, January 23rd. Zacks Research raised shares of RLI from a "strong sell" rating to a "hold" rating in a research note on Thursday, April 2nd. Wells Fargo & Company decreased their price target on shares of RLI from $59.00 to $55.00 and set an "equal weight" rating for the company in a research note on Thursday, April 9th. Finally, Citizens Jmp reaffirmed a "market perform" rating on shares of RLI in a research note on Friday, January 23rd. One analyst has rated the stock with a Strong Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat.com, RLI presently has an average rating of "Hold" and a consensus target price of $61.50.

RLI Stock Performance

Shares of RLI stock opened at $51.54 on Friday. The company has a market capitalization of $4.74 billion, a P/E ratio of 12.04 and a beta of 0.42. The company's 50 day moving average price is $58.57 and its two-hundred day moving average price is $60.62. RLI has a 52 week low of $50.63 and a 52 week high of $77.24.

RLI (NYSE:RLI - Get Free Report) last announced its earnings results on Wednesday, April 22nd. The insurance provider reported $0.83 EPS for the quarter, topping the consensus estimate of $0.73 by $0.10. The firm had revenue of $423.87 million for the quarter, compared to the consensus estimate of $564.47 million. RLI had a net margin of 20.81% and a return on equity of 17.72%. The business's quarterly revenue was up 4.0% on a year-over-year basis. During the same period last year, the company posted $0.92 EPS. Analysts forecast that RLI will post 2.71 earnings per share for the current year.

Hedge Funds Weigh In On RLI

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Chatham Capital Group Inc. grew its stake in shares of RLI by 0.7% in the fourth quarter. Chatham Capital Group Inc. now owns 26,460 shares of the insurance provider's stock valued at $1,693,000 after buying an additional 180 shares in the last quarter. Covestor Ltd lifted its holdings in RLI by 13.0% during the 4th quarter. Covestor Ltd now owns 1,590 shares of the insurance provider's stock valued at $102,000 after purchasing an additional 183 shares during the last quarter. Allworth Financial LP lifted its holdings in RLI by 5.3% during the 3rd quarter. Allworth Financial LP now owns 3,760 shares of the insurance provider's stock valued at $245,000 after purchasing an additional 189 shares during the last quarter. Farther Finance Advisors LLC lifted its holdings in 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 purchasing an additional 201 shares during the last quarter. Finally, Public Employees Retirement System of Ohio lifted its holdings in RLI by 0.3% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 75,502 shares of the insurance provider's stock valued at $4,924,000 after purchasing an additional 207 shares during the last quarter. 77.89% of the stock is owned by institutional investors.

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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