RLI (NYSE:RLI) Stock Price Down 4.8% - Here's Why

RLI Corp. (NYSE:RLI - Get Free Report)'s share price fell 4.8% during trading on Monday . The stock traded as low as $72.82 and last traded at $72.31. 40,113 shares changed hands during trading, a decline of 89% from the average session volume of 369,762 shares. The stock had previously closed at $75.93.

Analyst Ratings Changes

RLI has been the subject of a number of research analyst reports. Wall Street Zen upgraded shares of RLI from a "sell" rating to a "hold" rating in a research note on Tuesday, May 6th. Keefe, Bruyette & Woods dropped their target price on shares of RLI from $95.00 to $85.00 and set an "outperform" rating for the company in a research report on Wednesday, April 9th. JMP Securities reaffirmed a "market perform" rating on shares of RLI in a research report on Thursday, April 24th. Finally, Compass Point downgraded RLI from a "strong-buy" rating to a "hold" rating in a research note on Friday, April 25th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and two have issued a buy rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $78.60.

RLI Stock Performance

The stock's 50-day moving average price is $75.59 and its 200-day moving average price is $77.82. The company has a current ratio of 0.34, a quick ratio of 0.38 and a debt-to-equity ratio of 0.07. The company has a market capitalization of $6.78 billion, a P/E ratio of 19.72 and a beta of 0.70.

RLI (NYSE:RLI - Get Free Report) last issued its earnings results on Wednesday, April 23rd. The insurance provider reported $0.92 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.88 by $0.04. The firm had revenue of $36.73 million for the quarter, compared to analysts' expectations of $442.20 million. RLI had a net margin of 19.53% and a return on equity of 16.63%. RLI's revenue was down 8.3% on a year-over-year basis. During the same quarter last year, the company posted $0.95 earnings per share. As a group, equities analysts expect that RLI Corp. will post 3.08 EPS for the current year.

RLI Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 20th. Shareholders of record on Friday, May 30th will be given a $0.16 dividend. The ex-dividend date of this dividend is Friday, May 30th. This is a positive change from RLI's previous quarterly dividend of $0.15. This represents a $0.64 annualized dividend and a yield of 0.87%. RLI's dividend payout ratio (DPR) is currently 21.05%.

Insider Activity

In other RLI news, Director Robert P. Restrepo, Jr. sold 2,864 shares of RLI stock in a transaction on Thursday, March 13th. The stock was sold at an average price of $74.89, for a total transaction of $214,484.96. Following the sale, the director now owns 23,312 shares of the company's stock, valued at $1,745,835.68. The trade was a 10.94% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Jordan W. Graham sold 1,500 shares of the business's stock in a transaction on Tuesday, March 11th. The stock was sold at an average price of $74.77, for a total value of $112,155.00. Following the transaction, the director now owns 12,854 shares of the company's stock, valued at $961,093.58. This trade represents a 10.45% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 2.16% of the company's stock.

Institutional Investors Weigh In On RLI

Hedge funds and other institutional investors have recently modified their holdings of the stock. Charles Schwab Investment Management Inc. increased its stake in RLI by 2.0% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 471,752 shares of the insurance provider's stock valued at $77,759,000 after buying an additional 9,131 shares during the period. New York Life Investment Management LLC acquired a new position in shares of RLI during the fourth quarter valued at approximately $728,000. Raymond James Financial Inc. bought a new stake in RLI during the fourth quarter worth approximately $17,854,000. Empowered Funds LLC acquired a new stake in RLI in the fourth quarter worth approximately $840,000. Finally, Confluence Investment Management LLC acquired a new stake in RLI in the first quarter worth approximately $1,120,000. 77.89% of the stock is currently owned by institutional investors.

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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