RLI (NYSE:RLI) Posts Quarterly Earnings Results

Key Points

• $0.83 EPS vs. $0.73 est. RLI beat expectations for the quarter and reported strong profitability metrics, including a net margin of 21.43% and a return on equity of 18.67%.
• Insider buying: CEO Craig Kliethermes purchased 5,000 shares and COO Jennifer Klobnak bought 2,000 shares in January, lifting insider ownership to about 2.39%.
• Shares traded at $57.28 (down $1.12), valuing the company at roughly $5.27 billion with a P/E of 13.14; analysts' consensus is a "Hold" with an average price target of $64.40 and the stock yields about 1.1%.

RLI (NYSE:RLI - Get Free Report) posted its quarterly earnings results on Wednesday. The insurance provider reported $0.83 EPS for the quarter, topping the consensus estimate of $0.73 by $0.10, FiscalAI reports. RLI had a net margin of 21.43% and a return on equity of 18.67%.

RLI Price Performance

NYSE:RLI traded down $1.12 during mid-day trading on Wednesday, reaching $57.28. 735,932 shares of the company's stock traded hands, compared to its average volume of 749,096. The company has a 50 day moving average price of $59.76 and a 200-day moving average price of $61.13. The firm has a market capitalization of $5.27 billion, a price-to-earnings ratio of 13.14 and a beta of 0.52. RLI has a 12-month low of $55.80 and a 12-month high of $79.55.

RLI Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, March 16th. Investors of record on Monday, March 2nd were issued a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date was Monday, March 2nd. RLI's payout ratio is currently 14.68%.

Insider Buying and Selling

In other RLI news, COO Jennifer L. Klobnak bought 2,000 shares of the firm's stock in a transaction that occurred on Friday, January 23rd. The stock was bought at an average price of $57.99 per share, for a total transaction of $115,980.00. Following the completion of the acquisition, the chief operating officer directly owned 100,318 shares in the company, valued at $5,817,440.82. The trade was a 2.03% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Craig W. Kliethermes bought 5,000 shares of the firm's stock in a transaction that occurred on Friday, January 23rd. The shares were acquired at an average price of $57.45 per share, with a total value of $287,250.00. Following the acquisition, the chief executive officer owned 143,990 shares of the company's stock, valued at $8,272,225.50. This represents a 3.60% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 2.39% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On RLI

Hedge funds and other institutional investors have recently made changes to their positions in the business. Northwestern Mutual Wealth Management Co. raised its holdings in shares of RLI by 156.4% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 464 shares of the insurance provider's stock valued at $30,000 after acquiring an additional 283 shares in the last quarter. Advisory Services Network LLC bought a new position in RLI in the third quarter worth $47,000. Danske Bank A S bought a new position in RLI in the third quarter worth $59,000. CIBC Private Wealth Group LLC raised its holdings in RLI by 283.2% in the third quarter. CIBC Private Wealth Group LLC now owns 958 shares of the insurance provider's stock worth $62,000 after purchasing an additional 708 shares in the last quarter. Finally, Parallel Advisors LLC raised its holdings in RLI by 86.4% in the third quarter. Parallel Advisors LLC now owns 1,454 shares of the insurance provider's stock worth $95,000 after purchasing an additional 674 shares in the last quarter. Institutional investors own 77.89% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on RLI. Weiss Ratings restated a "hold (c-)" rating on shares of RLI in a research report on Thursday, April 2nd. Jefferies Financial Group raised RLI from an "underperform" rating to a "hold" rating and set a $52.00 target price for the company in a research note on Friday, January 23rd. Zacks Research upgraded RLI from a "strong sell" rating to a "hold" rating in a report on Thursday, April 2nd. Wells Fargo & Company reduced their price target on RLI from $59.00 to $55.00 and set an "equal weight" rating on the stock in a research report on Thursday, April 9th. Finally, Keefe, Bruyette & Woods raised RLI from a "moderate buy" rating to a "strong-buy" rating in a research note on Tuesday, February 24th. One research analyst has rated the stock with a Strong Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $64.40.

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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