Short Interest in RLI Corp. (NYSE:RLI) Rises By 19.2%

Key Points

• Short interest in RLI rose 19.2% in February to 3,719,519 shares, equal to about 4.1% of the company's shares short and a days-to-cover ratio of 4.7 based on average daily volume.
• Company insiders bought shares in January—CEO Craig Kliethermes purchased 5,000 shares and COO Jennifer Klobnak 2,000—while corporate insiders collectively own about 2.16% of RLI.
• Earnings and dividend: RLI beat quarterly EPS and revenue estimates ($0.94 vs. $0.76 and $465.7M vs. $447.5M) and declared a $0.16 quarterly dividend (annualized $0.64, ~1.0% yield).

RLI Corp. (NYSE:RLI - Get Free Report) saw a significant increase in short interest in the month of February. As of February 27th, there was short interest totaling 3,719,519 shares, an increase of 19.2% from the February 12th total of 3,119,737 shares. Based on an average daily trading volume, of 785,875 shares, the days-to-cover ratio is currently 4.7 days. Currently, 4.1% of the company's shares are short sold. Currently, 4.1% of the company's shares are short sold. Based on an average daily trading volume, of 785,875 shares, the days-to-cover ratio is currently 4.7 days.

RLI Trading Down 0.4%

Shares of RLI stock traded down $0.22 during trading hours on Tuesday, reaching $61.26. 492,163 shares of the stock were exchanged, compared to its average volume of 761,979. RLI has a 12-month low of $55.80 and a 12-month high of $81.79. The company's 50-day moving average price is $60.46 and its 200-day moving average price is $62.49. The firm has a market capitalization of $5.63 billion, a price-to-earnings ratio of 14.05 and a beta of 0.50.

RLI (NYSE:RLI - Get Free Report) last issued its earnings results on Wednesday, January 21st. The insurance provider reported $0.94 EPS for the quarter, topping analysts' consensus estimates of $0.76 by $0.18. RLI had a net margin of 21.43% and a return on equity of 18.67%. The business had revenue of $465.69 million for the quarter, compared to analyst estimates of $447.53 million. During the same period last year, the company posted $0.41 earnings per share. On average, sell-side analysts expect that RLI will post 3.08 EPS for the current year.

RLI Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, March 16th. Stockholders 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 dividend yield of 1.0%. RLI's dividend payout ratio is presently 14.68%.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the company. Truist Financial set a $58.00 target price on RLI in a report on Friday, January 23rd. Citizens Jmp reissued a "market perform" rating on shares of RLI in a report on Friday, January 23rd. Jefferies Financial Group raised shares of RLI from an "underperform" rating to a "hold" rating and set a $52.00 target price for the company in a research report on Friday, January 23rd. Zacks Research cut RLI from a "hold" rating to a "strong sell" rating in a report on Monday, January 26th. Finally, Keefe, Bruyette & Woods raised RLI from a "moderate buy" rating to a "strong-buy" rating in a report on Tuesday, February 24th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, RLI has a consensus rating of "Hold" and a consensus price target of $65.20.

Insider Transactions at RLI

In other RLI news, CEO Craig W. Kliethermes purchased 5,000 shares of RLI stock in a transaction that occurred on Friday, January 23rd. The shares were bought at an average price of $57.45 per share, for a total transaction of $287,250.00. Following the acquisition, the chief executive officer directly owned 143,990 shares in the company, valued at approximately $8,272,225.50. This trade represents a 3.60% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, COO Jennifer L. Klobnak bought 2,000 shares of the firm's stock in a transaction that occurred on Friday, January 23rd. The shares were acquired at an average price of $57.99 per share, with a total value of $115,980.00. Following the acquisition, the chief operating officer owned 100,318 shares of the company's stock, valued at $5,817,440.82. This represents a 2.03% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 2.16% of the company's stock.

Institutional Trading of RLI

A number of institutional investors have recently made changes to their positions in the business. Clarity Asset Management Inc. purchased a new position in shares of RLI in the 2nd quarter valued at approximately $28,000. Quent Capital LLC acquired a new position in RLI during the 3rd quarter valued at approximately $26,000. Farther Finance Advisors LLC raised its holdings 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 worth $26,000 after buying an additional 201 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in shares of RLI by 156.4% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 464 shares of the insurance provider's stock worth $30,000 after buying an additional 283 shares during the period. Finally, MassMutual Private Wealth & Trust FSB grew its holdings in shares of RLI by 72.1% during the fourth quarter. MassMutual Private Wealth & Trust FSB now owns 618 shares of the insurance provider's stock valued at $40,000 after buying an additional 259 shares during the last quarter. Institutional investors and hedge funds 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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