Zacks Research Issues Pessimistic Estimate for RLI Earnings

Key Points

• Zacks Research lowered its Q1 2027 EPS estimate for RLI to $0.74 from $0.77 and kept a Hold rating on the stock.
• RLI recently beat earnings expectations with Q1 EPS of $0.83 versus the $0.73 consensus, though revenue of $423.87 million came in well below estimates.
• The company raised its quarterly dividend to $0.18 per share from $0.16, while insiders, including the CEO and a director, bought shares in recent weeks.

RLI Corp. (NYSE:RLI - Free Report) - Investment analysts at Zacks Research reduced their Q1 2027 EPS estimates for shares of RLI in a note issued to investors on Monday, June 1st. Zacks Research analyst Team now anticipates that the insurance provider will earn $0.74 per share for the quarter, down from their prior estimate of $0.77. Zacks Research has a "Hold" rating on the stock. The consensus estimate for RLI's current full-year earnings is $2.75 per share. Zacks Research also issued estimates for RLI's FY2027 earnings at $2.64 EPS.

RLI (NYSE:RLI - Get Free Report) last announced its quarterly earnings results on Wednesday, April 22nd. The insurance provider reported $0.83 EPS for the quarter, beating analysts' consensus estimates of $0.73 by $0.10. RLI had a net margin of 20.81% and a return on equity of 17.72%. The business had revenue of $423.87 million for the quarter, compared to analyst estimates of $564.47 million. During the same quarter in the prior year, the business earned $0.92 EPS. RLI's quarterly revenue was up 4.0% on a year-over-year basis.

A number of other research analysts have also commented on RLI. Weiss Ratings lowered shares of RLI from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, May 22nd. Wall Street Zen lowered shares of RLI from a "hold" rating to a "sell" rating in a research note on Saturday, May 2nd. Keefe, Bruyette & Woods upgraded shares of RLI from a "moderate buy" rating to a "strong-buy" rating in a research note on Tuesday, February 24th. Finally, Wells Fargo & Company decreased their price target on shares of RLI from $59.00 to $55.00 and set an "equal weight" rating on the stock in a research note on Thursday, April 9th. One analyst has rated the stock with a Strong Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $61.50.

RLI Stock Performance

Shares of RLI opened at $50.76 on Tuesday. RLI has a 52 week low of $47.26 and a 52 week high of $77.24. The firm has a market cap of $4.67 billion, a P/E ratio of 11.86 and a beta of 0.41. The firm's 50-day simple moving average is $54.40 and its 200 day simple moving average is $59.22.

RLI Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 12th. Shareholders of record on Friday, May 29th will be given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date is Friday, May 29th. This is a boost from RLI's previous quarterly dividend of $0.16. RLI's dividend payout ratio (DPR) is currently 16.82%.

Insider Buying and Selling at RLI

In other RLI news, Director David B. Duclos bought 2,500 shares of the firm's stock in a transaction on Thursday, May 28th. The shares were purchased at an average price of $51.99 per share, for a total transaction of $129,975.00. Following the transaction, the director directly owned 9,780 shares in the company, valued at approximately $508,462.20. This trade represents a 34.34% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Craig W. Kliethermes acquired 5,000 shares of the firm's stock in a transaction that occurred on Thursday, May 21st. The stock was purchased at an average cost of $52.00 per share, for a total transaction of $260,000.00. Following the completion of the purchase, the chief executive officer directly owned 148,990 shares of the company's stock, valued at $7,747,480. The trade was a 3.47% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last quarter, insiders have bought 16,500 shares of company stock worth $858,955. 2.39% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Chatham Capital Group Inc. increased its stake in RLI by 0.7% in the fourth quarter. Chatham Capital Group Inc. now owns 26,460 shares of the insurance provider's stock valued at $1,693,000 after acquiring an additional 180 shares during the last quarter. Covestor Ltd increased its stake in RLI by 13.0% in the fourth quarter. Covestor Ltd now owns 1,590 shares of the insurance provider's stock valued at $102,000 after acquiring an additional 183 shares during the last quarter. Allworth Financial LP increased its stake in RLI by 5.3% in the third quarter. Allworth Financial LP now owns 3,760 shares of the insurance provider's stock valued at $245,000 after acquiring an additional 189 shares during the last quarter. Farther Finance Advisors LLC increased its stake in RLI by 94.4% in the fourth quarter. Farther Finance Advisors LLC now owns 414 shares of the insurance provider's stock valued at $26,000 after acquiring an additional 201 shares during the last quarter. Finally, Public Employees Retirement System of Ohio boosted its position in RLI by 0.3% in the third quarter. Public Employees Retirement System of Ohio now owns 75,502 shares of the insurance provider's stock valued at $4,924,000 after buying an additional 207 shares in the last quarter. 77.89% of the stock is owned by institutional investors.

About RLI

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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