RLI (NYSE:RLI) Reaches New 1-Year Low - What's Next?

Key Points

• RLI Corp. shares reached a new 52-week low of $63.20 during trading, indicating investor concerns as the stock also experienced a 3.0% decline.
• Wall Street analysts have mixed views on RLI, with a consensus rating of "Hold" and a target price of $78.60, despite the recent downturn.
• RLI announced a quarterly dividend of $0.16 per share, reflecting a 1.0% yield, and has shown solid revenue growth, reporting a 20.0% increase from the same quarter last year.

RLI Corp. (NYSE:RLI - Get Free Report) shares hit a new 52-week low during mid-day trading on Wednesday . The company traded as low as $63.20 and last traded at $63.26, with a volume of 779288 shares. The stock had previously closed at $65.22.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen upgraded RLI from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th. Two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, RLI has a consensus rating of "Hold" and a consensus target price of $78.60.

RLI Trading Down 3.0%

The stock has a fifty day moving average of $66.72 and a two-hundred day moving average of $71.82. The company has a current ratio of 0.35, a quick ratio of 0.35 and a debt-to-equity ratio of 0.06. The company has a market capitalization of $5.81 billion, a PE ratio of 18.13 and a beta of 0.65.

RLI (NYSE:RLI - Get Free Report) last announced its quarterly earnings results on Monday, July 21st. The insurance provider reported $0.84 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.75 by $0.09. RLI had a return on equity of 15.82% and a net margin of 17.81%.The company had revenue of $562.28 million for the quarter, compared to the consensus estimate of $445.55 million. During the same quarter in the previous year, the business earned $1.72 EPS. RLI's revenue was up 20.0% compared to the same quarter last year. As a group, sell-side analysts anticipate that RLI Corp. will post 3.08 earnings per share for the current fiscal year.

RLI Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, September 19th. Stockholders of record on Friday, August 29th were paid a dividend of $0.16 per share. The ex-dividend date of this dividend was Friday, August 29th. This represents a $0.64 dividend on an annualized basis and a dividend yield of 1.0%. RLI's payout ratio is presently 18.34%.

Insider Transactions at RLI

In other news, COO Jennifer L. Klobnak acquired 3,000 shares of the business's stock in a transaction on Thursday, July 24th. The shares were acquired at an average cost of $69.15 per share, with a total value of $207,450.00. Following the transaction, the chief operating officer owned 98,450 shares in the company, valued at $6,807,817.50. The trade was a 3.14% increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. 2.16% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RLI. Vanguard Group Inc. grew its stake in shares of RLI by 95.2% in the first quarter. Vanguard Group Inc. now owns 8,996,643 shares of the insurance provider's stock worth $722,700,000 after acquiring an additional 4,388,400 shares during the last quarter. Kayne Anderson Rudnick Investment Management LLC raised its holdings in RLI by 117.0% in the first quarter. Kayne Anderson Rudnick Investment Management LLC now owns 5,226,797 shares of the insurance provider's stock worth $419,869,000 after buying an additional 2,817,616 shares during the last quarter. Neuberger Berman Group LLC lifted its stake in shares of RLI by 106.6% in the first quarter. Neuberger Berman Group LLC now owns 2,750,738 shares of the insurance provider's stock worth $220,967,000 after buying an additional 1,419,212 shares in the last quarter. Markel Group Inc. grew its holdings in shares of RLI by 100.0% during the first quarter. Markel Group Inc. now owns 2,394,544 shares of the insurance provider's stock valued at $192,354,000 after buying an additional 1,197,272 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its position in shares of RLI by 97.8% during the first quarter. Dimensional Fund Advisors LP now owns 1,861,984 shares of the insurance provider's stock valued at $149,569,000 after acquiring an additional 920,799 shares in the last quarter. 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.

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