RLI (NYSE:RLI) Releases Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Key Points

• RLI beat quarterly earnings expectations, reporting EPS of $0.83 versus the $0.72 consensus estimate, a surprise of $0.11. The insurer also posted a net margin of 20.81% and return on equity of 17.72%.
• The company raised its dividend to $0.18 per share from $0.16 previously, equal to an annualized dividend of $0.72 and a yield of 1.2%. Its payout ratio remains low at 16.82%.
• Shares traded lower despite the earnings beat, with RLI falling to $59.25 on Wednesday. The stock has also drawn attention from insiders and analysts, with recent insider buying and a current consensus rating of “Hold.”

RLI (NYSE:RLI - Get Free Report) announced its earnings results on Wednesday. The insurance provider reported $0.83 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.72 by $0.11, FiscalAI reports. RLI had a net margin of 20.81% and a return on equity of 17.72%.

RLI Price Performance

NYSE RLI traded down $0.95 during trading hours on Wednesday, hitting $59.25. 964,458 shares of the company's stock traded hands, compared to its average volume of 854,320. The company has a market capitalization of $5.45 billion, a PE ratio of 13.84 and a beta of 0.38. RLI has a 52-week low of $47.26 and a 52-week high of $70.07. The firm's 50-day moving average is $55.28 and its 200-day moving average is $57.41.

RLI Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Investors of record on Friday, May 29th were paid a dividend of $0.18 per share. The ex-dividend date of this dividend was Friday, May 29th. This represents a $0.72 annualized dividend and a yield of 1.2%. This is a boost from RLI's previous quarterly dividend of $0.16. RLI's dividend payout ratio is currently 16.82%.

Insider Buying and Selling at RLI

In related news, Director Clark C. Kellogg bought 3,000 shares of the stock in a transaction dated Monday, June 1st. The shares were acquired at an average cost of $50.90 per share, for a total transaction of $152,700.00. Following the acquisition, the director directly owned 4,502 shares in the company, valued at approximately $229,151.80. This trade represents a 199.73% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director David B. Duclos bought 2,500 shares of the stock in a transaction dated Thursday, May 28th. The shares were bought at an average price of $51.99 per share, for a total transaction of $129,975.00. Following the completion of the acquisition, the director owned 9,780 shares in the company, valued at approximately $508,462.20. The trade was a 34.34% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders acquired 16,500 shares of company stock valued at $858,955. Company insiders own 2.39% of the company's stock.

Hedge Funds Weigh In On RLI

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Bank of Nova Scotia boosted its position in shares of RLI by 16.7% during the 3rd quarter. Bank of Nova Scotia now owns 5,981 shares of the insurance provider's stock valued at $390,000 after acquiring an additional 858 shares during the last quarter. Franklin Resources Inc. grew its holdings in shares of RLI by 19.9% in the third quarter. Franklin Resources Inc. now owns 5,384 shares of the insurance provider's stock valued at $351,000 after purchasing an additional 893 shares during the period. Strong Retirement Solutions LLC acquired a new stake in RLI during the fourth quarter worth about $322,000. Integrated Wealth Concepts LLC increased its position in RLI by 44.4% during the third quarter. Integrated Wealth Concepts LLC now owns 4,765 shares of the insurance provider's stock worth $311,000 after purchasing an additional 1,465 shares during the last quarter. Finally, Kestra Advisory Services LLC raised its stake in RLI by 18.3% during the fourth quarter. Kestra Advisory Services LLC now owns 4,324 shares of the insurance provider's stock worth $277,000 after purchasing an additional 669 shares during the period. Institutional investors and hedge funds own 77.89% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on RLI. Wall Street Zen lowered shares of RLI from a "hold" rating to a "sell" rating in a research note on Monday. Wells Fargo & Company boosted their price objective on RLI from $55.00 to $62.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 9th. Keefe, Bruyette & Woods increased their target price on RLI from $67.00 to $70.00 and gave the company an "outperform" rating in a report on Wednesday, July 8th. Zacks Research upgraded RLI from a "strong sell" rating to a "hold" rating in a research report on Thursday, April 2nd. Finally, Weiss Ratings lowered RLI from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, May 22nd. One research analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, RLI has a consensus rating of "Hold" and an average price target of $60.50.

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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