RLI (NYSE:RLI) Raised to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen upgraded RLI from “sell” to “hold”, adding to a mixed but generally neutral analyst view of the insurer. MarketBeat says the stock’s overall consensus rating is also Hold, with an average price target of $60.50.
• RLI shares were up 0.9% to $60.70 in Friday trading. The stock has a market cap of $5.58 billion, a P/E of 14.18, and a low beta of 0.38, indicating relatively modest volatility.
• The company’s latest quarterly results showed earnings per share of $0.83, which beat estimates, while revenue came in below expectations at $423.87 million. Insider buying was also notable, including purchases by the CEO and a director over the past month.

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

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

RLI Stock Up 0.9%

Shares of RLI traded up $0.56 during mid-day trading on Friday, reaching $60.70. The company's stock had a trading volume of 481,814 shares, compared to its average volume of 911,504. The business has a fifty day moving average of $53.75 and a 200 day moving average of $57.69. The company has a market cap of $5.58 billion, a price-to-earnings ratio of 14.18 and a beta of 0.38. RLI has a 1 year low of $47.26 and a 1 year high of $71.17.

RLI (NYSE:RLI - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The insurance provider reported $0.83 earnings per share for the quarter, beating analysts' consensus estimates of $0.73 by $0.10. The business had revenue of $423.87 million for the quarter, compared to the consensus estimate of $564.47 million. RLI had a return on equity of 17.72% and a net margin of 20.81%.RLI's revenue for the quarter was up 4.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.92 earnings per share. On average, analysts predict that RLI will post 2.75 earnings per share for the current year.

Insider Transactions at RLI

In other news, Director Clark C. Kellogg acquired 3,000 shares of the company's stock in a transaction that occurred on Monday, June 1st. The shares were purchased at an average price of $50.90 per share, for a total transaction of $152,700.00. Following the completion of the acquisition, the director owned 4,502 shares of the company's stock, valued at approximately $229,151.80. This represents a 199.73% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Craig W. Kliethermes acquired 2,000 shares of the company's stock in a transaction that occurred on Wednesday, May 27th. The stock was purchased at an average price of $52.00 per share, for a total transaction of $104,000.00. Following the acquisition, the chief executive officer directly owned 150,990 shares of the company's stock, valued at $7,851,480. The trade was a 1.34% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased 16,500 shares of company stock valued at $858,955 over the last 90 days. Company insiders own 2.39% of the company's stock.

Institutional Trading of RLI

Several large investors have recently added to or reduced their stakes in the business. Wasatch Advisors LP bought a new position in RLI during the second quarter valued at about $84,608,000. Norges Bank acquired a new stake in shares of RLI in the fourth quarter worth about $66,997,000. Victory Capital Management Inc. boosted its stake in shares of RLI by 6,060.1% during the 4th quarter. Victory Capital Management Inc. now owns 739,709 shares of the insurance provider's stock worth $47,327,000 after acquiring an additional 727,701 shares in the last quarter. First Trust Advisors LP boosted its stake in shares of RLI by 311.6% during the 1st quarter. First Trust Advisors LP now owns 688,318 shares of the insurance provider's stock worth $39,262,000 after acquiring an additional 521,096 shares in the last quarter. Finally, Bank of Montreal Can increased its holdings in shares of RLI by 3,664.4% during the 4th quarter. Bank of Montreal Can now owns 368,384 shares of the insurance provider's stock valued at $23,569,000 after acquiring an additional 358,598 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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