Zacks Research Issues Positive Forecast for RLI Earnings

Key Points

• Zacks Research raised its Q2 2026 EPS estimate for RLI to $0.70 from $0.68, but it still maintains a Hold rating on the stock. The broader analyst consensus remains Hold, with an average price target of $61.50.
• RLI recently beat Q1 earnings expectations, reporting $0.83 EPS versus the $0.73 consensus, even though revenue came in below estimates at $423.87 million. The company also posted solid profitability metrics, including a 17.72% return on equity.
• The insurer is returning more cash to shareholders by raising its quarterly dividend 12.5% to $0.18 per share and authorizing a new $250 million share buyback program. It also announced a $2.00 special dividend, signaling confidence in its capital position.

RLI Corp. (NYSE:RLI - Free Report) - Analysts at Zacks Research increased their Q2 2026 EPS estimates for shares of RLI in a research note issued on Wednesday, May 13th. Zacks Research analyst Team now expects that the insurance provider will earn $0.70 per share for the quarter, up from their prior estimate of $0.68. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for RLI's current full-year earnings is $2.70 per share. Zacks Research also issued estimates for RLI's Q3 2026 earnings at $0.53 EPS, FY2026 earnings at $2.70 EPS, Q1 2027 earnings at $0.77 EPS, Q2 2027 earnings at $0.69 EPS, Q3 2027 earnings at $0.58 EPS and Q1 2028 earnings at $0.48 EPS.

Several other research analysts have also weighed in on RLI. 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 raised shares of RLI from a "moderate buy" rating to a "strong-buy" rating in a research note on Tuesday, February 24th. Jefferies Financial Group upgraded shares of RLI from an "underperform" rating to a "hold" rating and set a $52.00 target price on the stock in a report on Friday, January 23rd. Truist Financial set a $58.00 price target on shares of RLI in a report on Friday, January 23rd. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of RLI in a research report on Thursday, April 2nd. One analyst has rated the stock with a Strong Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $61.50.

RLI Trading Up 0.1%

RLI stock opened at $50.88 on Monday. The company has a market cap of $4.68 billion, a PE ratio of 11.89 and a beta of 0.42. RLI has a 1 year low of $47.26 and a 1 year high of $77.24. The company's 50-day moving average is $56.32 and its two-hundred day moving average is $59.85.

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

RLI Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 12th. Stockholders of record on Friday, May 29th will be given a dividend of $0.18 per share. This is a boost from RLI's previous quarterly dividend of $0.16. The ex-dividend date of this dividend is Friday, May 29th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.4%. RLI's payout ratio is currently 14.95%.

Institutional Trading of RLI

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Quent Capital LLC bought a new position in RLI in the third quarter worth approximately $26,000. Farther Finance Advisors LLC raised its position in shares of RLI by 94.4% during the fourth quarter. Farther Finance Advisors LLC now owns 414 shares of the insurance provider's stock worth $26,000 after purchasing an additional 201 shares during the period. Northwestern Mutual Wealth Management Co. raised its position 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 purchasing an additional 283 shares during the period. MassMutual Private Wealth & Trust FSB lifted its holdings in shares of RLI by 72.1% in the 4th quarter. MassMutual Private Wealth & Trust FSB now owns 618 shares of the insurance provider's stock worth $40,000 after purchasing an additional 259 shares in the last quarter. Finally, AlphaQuest LLC acquired a new stake in RLI in the 3rd quarter valued at $43,000. 77.89% of the stock is owned by institutional investors.

Key RLI News

Here are the key news stories impacting RLI this week:

• Positive Sentiment: RLI announced a $2.00 special dividend, boosting near-term shareholder returns and reinforcing its capital strength. RLI Boosts Shareholder Value With Dividends, Approves Buyback Program
• Positive Sentiment: The board raised the quarterly dividend by 12.5% to $0.18 per share, which should support investor sentiment around ongoing cash generation. RLI Declares Regular and Special Dividends and Authorizes New $250 Million Share Repurchase Program
• Positive Sentiment: RLI also authorized a new $250 million share buyback program, which could support earnings per share and reduce share count over time. RLI Boosts Dividend and Authorizes New Share Repurchase
• Neutral Sentiment: Zacks Research modestly increased its Q4 2027 EPS estimate to $0.62, suggesting only a slight improvement in long-term expectations. RLI stock page
• Neutral Sentiment: The same firm cut its Q4 2026 EPS estimate to $0.64 and lowered FY2027 EPS to $2.66, indicating some caution on medium-term earnings growth. RLI stock page
• Neutral Sentiment: Brokerage sentiment remains largely unchanged, with analysts maintaining an overall “Hold” view on the stock. RLI Corp. NYSE: RLI Given Average Recommendation of "Hold" by Brokerages

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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