RLI (NYSE:RLI) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• RLI Corp. reported better-than-expected quarterly earnings with earnings per share at $0.83, exceeding analysts' estimates of $0.62, and generated revenue of $510.22 million versus the expected $444.75 million.
• The company declared a quarterly dividend of $0.16 per share, resulting in an annualized dividend of $0.64 and a yield of 1.0%, with a payout ratio of 18.34%.
• Equities analysts have recently upgraded RLI's rating to "hold" and set a consensus price target of $72.80, with indications of increased institutional investor interest in the company.

RLI Corp. (NYSE:RLI - Get Free Report) gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $59.64, but opened at $62.08. RLI shares last traded at $61.50, with a volume of 211,977 shares trading hands.

The insurance provider reported $0.83 earnings per share for the quarter, topping analysts' consensus estimates of $0.62 by $0.21. The company had revenue of $510.22 million for the quarter, compared to analysts' expectations of $444.75 million. RLI had a net margin of 17.81% and a return on equity of 15.82%. During the same period last year, the firm posted $1.31 earnings per share.

RLI Dividend Announcement

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

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on RLI shares. Wall Street Zen raised shares of RLI from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th. Weiss Ratings restated a "hold (c)" rating on shares of RLI in a report on Wednesday, October 8th. Finally, Truist Financial set a $62.00 price objective on shares of RLI and gave the stock a "hold" rating in a report on Friday, October 3rd. One research analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $72.80.

Insider Transactions at RLI

In other news, COO Jennifer L. Klobnak acquired 3,000 shares of the firm's stock in a transaction dated Thursday, July 24th. The stock was bought at an average price of $69.15 per share, with a total value of $207,450.00. Following the transaction, the chief operating officer directly owned 98,450 shares in the company, valued at approximately $6,807,817.50. The trade was a 3.14% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 2.16% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of RLI. Vanguard Group Inc. grew its position in shares of RLI by 95.2% in the 1st quarter. Vanguard Group Inc. now owns 8,996,643 shares of the insurance provider's stock valued at $722,700,000 after acquiring an additional 4,388,400 shares during the period. Kayne Anderson Rudnick Investment Management LLC grew its position in shares of RLI by 117.0% in the 1st quarter. Kayne Anderson Rudnick Investment Management LLC now owns 5,226,797 shares of the insurance provider's stock valued at $419,869,000 after acquiring an additional 2,817,616 shares during the period. Neuberger Berman Group LLC grew its position in shares of RLI by 106.6% in the 1st quarter. Neuberger Berman Group LLC now owns 2,750,738 shares of the insurance provider's stock valued at $220,967,000 after acquiring an additional 1,419,212 shares during the period. Markel Group Inc. grew its position in shares of RLI by 100.0% in the 1st quarter. Markel Group Inc. now owns 2,394,544 shares of the insurance provider's stock valued at $192,354,000 after acquiring an additional 1,197,272 shares during the period. Finally, Wasatch Advisors LP bought a new stake in shares of RLI during the 2nd quarter worth about $84,608,000. Institutional investors own 77.89% of the company's stock.

RLI Stock Up 3.1%

The firm has a market cap of $5.64 billion, a P/E ratio of 17.64 and a beta of 0.60. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.35 and a current ratio of 0.35. The firm's fifty day moving average is $65.60 and its 200 day moving average is $70.28.

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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