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

Key Points

• RLI Corp. shares have reached a new 52-week low of $65.14 as the stock trades at around $66.08, prompting discussions about potential selling opportunities.
• Despite the recent decline, analysts maintain a consensus rating of "Hold" for RLI with a target price of $78.60, suggesting mixed sentiment on the stock's future performance.
• The company recently increased its quarterly dividend to $0.16 per share, reflecting positive financial performance with a net margin of 17.81% and revenue growth of 20.0% year-over-year.

RLI Corp. (NYSE:RLI - Get Free Report) hit a new 52-week low during mid-day trading on Monday . The company traded as low as $65.14 and last traded at $66.08, with a volume of 942171 shares changing hands. The stock had previously closed at $65.99.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on RLI. Wall Street Zen upgraded shares of RLI from a "sell" rating to a "hold" rating in a report on Saturday, July 26th. JMP Securities restated a "market perform" rating on shares of RLI in a report on Thursday, April 24th. Finally, Compass Point lowered shares of RLI from a "strong-buy" rating to a "hold" rating in a report on Friday, April 25th. One analyst has rated the stock with a sell rating, five have given a hold rating and two have given a buy rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $78.60.

RLI Stock Down 0.3%

The firm's 50 day moving average price is $70.85 and its two-hundred day moving average price is $73.99. The company has a market cap of $6.10 billion, a P/E ratio of 19.04 and a beta of 0.66. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.35 and a current ratio of 0.35.

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

RLI Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 20th. Stockholders of record on Friday, May 30th were paid a $0.16 dividend. The ex-dividend date was Friday, May 30th. This represents a $0.64 annualized dividend and a dividend yield of 1.0%. This is an increase from RLI's previous quarterly dividend of $0.15. RLI's dividend payout ratio (DPR) is presently 18.34%.

Insider Buying and Selling at RLI

In related news, COO Jennifer L. Klobnak acquired 3,000 shares of the stock in a transaction dated Thursday, July 24th. The stock was bought at an average price of $69.15 per share, for a total transaction of $207,450.00. Following the purchase, the chief operating officer directly owned 98,450 shares of the company's stock, 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 Securities & Exchange Commission, which is available at this hyperlink. 2.16% of the stock is owned by corporate insiders.

Institutional Trading of RLI

Several hedge funds have recently bought and sold shares of the business. Ontario Teachers Pension Plan Board acquired a new stake in RLI in the 2nd quarter valued at $1,036,000. Cetera Investment Advisers grew its position in RLI by 2.9% in the 2nd quarter. Cetera Investment Advisers now owns 16,406 shares of the insurance provider's stock valued at $1,185,000 after purchasing an additional 463 shares during the period. Creative Planning grew its position in RLI by 34.4% in the 2nd quarter. Creative Planning now owns 46,214 shares of the insurance provider's stock valued at $3,338,000 after purchasing an additional 11,823 shares during the period. SG Americas Securities LLC acquired a new stake in RLI in the 2nd quarter valued at $505,000. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS grew its position in RLI by 7.6% in the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 21,457 shares of the insurance provider's stock valued at $1,550,000 after purchasing an additional 1,522 shares during the period. Institutional investors and hedge funds own 77.89% of the company's stock.

RLI Company Profile

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.