RLI (NYSE:RLI) Reaches New 52-Week Low - Here's Why

Key Points

• RLI hit a new 52-week low of $50.61 on Tuesday, last trading around $50.74 on volume of 915,780 shares (previous close $51.50).
• Analyst sentiment is mixed-to-weakening: Wells Fargo cut its price target to $55 and Wall Street Zen downgraded the stock to "sell," while the consensus rating remains "Hold" with a $61.50 target.
• RLI beat on quarterly EPS ($0.83 vs. $0.73) but missed revenue estimates ($423.9M vs. $564.5M), and the company pays a quarterly dividend that annualizes to $0.64 (about a 1.3% yield).

RLI Corp. (NYSE:RLI - Get Free Report) hit a new 52-week low during trading on Tuesday . The stock traded as low as $50.61 and last traded at $50.7410, with a volume of 915780 shares changing hands. The stock had previously closed at $51.50.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on RLI shares. Wells Fargo & Company lowered their price target on RLI from $59.00 to $55.00 and set an "equal weight" rating for the company in a research note on Thursday, April 9th. Citizens Jmp reissued a "market perform" rating on shares of RLI in a research note on Friday, January 23rd. Wall Street Zen cut RLI from a "hold" rating to a "sell" rating in a research note on Saturday. Zacks Research raised RLI from a "strong sell" rating to a "hold" rating in a research note on Thursday, April 2nd. Finally, Keefe, Bruyette & Woods raised RLI from a "moderate buy" rating to a "strong-buy" rating in a research report on Tuesday, February 24th. One analyst has rated the stock with a Strong Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $61.50.

RLI Stock Down 1.5%

The stock has a market cap of $4.67 billion, a P/E ratio of 11.86 and a beta of 0.42. The business has a 50-day simple moving average of $58.57 and a 200-day simple moving average of $60.58.

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

RLI Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, March 16th. Shareholders of record on Monday, March 2nd were given a dividend of $0.16 per share. The ex-dividend date of this dividend was Monday, March 2nd. This represents a $0.64 dividend on an annualized basis and a yield of 1.3%. RLI's dividend payout ratio is presently 14.95%.

Institutional Investors Weigh In On RLI

A number of large investors have recently added to or reduced their stakes in the stock. Quent Capital LLC bought a new stake in shares of RLI in the third quarter valued at approximately $26,000. Farther Finance Advisors LLC boosted its position in shares of RLI by 94.4% in the fourth quarter. Farther Finance Advisors LLC now owns 414 shares of the insurance provider's stock valued at $26,000 after acquiring an additional 201 shares during the period. Northwestern Mutual Wealth Management Co. boosted its position in shares of RLI by 156.4% in 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 during the period. MassMutual Private Wealth & Trust FSB boosted its position in shares of RLI by 72.1% in the fourth quarter. MassMutual Private Wealth & Trust FSB now owns 618 shares of the insurance provider's stock valued at $40,000 after acquiring an additional 259 shares during the period. Finally, AlphaQuest LLC bought a new stake in shares of RLI in the third quarter valued at approximately $43,000. Institutional investors own 77.89% of the company's stock.

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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