Zacks Research Weighs in on RLI's Q1 Earnings (NYSE:RLI)

Key Points

• Zacks Research slightly raised its Q1 2028 EPS estimate for RLI to $0.49 from $0.48, while keeping a Hold rating on the stock.
• RLI recently reported Q1 EPS of $0.83, beating estimates, but revenue of $423.87 million came in below expectations. The company also reported strong profitability metrics, including a 20.81% net margin.
• The insurer increased its quarterly dividend to $0.18 per share from $0.16, and insider buying has picked up, with executives and directors purchasing shares in recent weeks.

RLI Corp. (NYSE:RLI - Free Report) - Equities researchers at Zacks Research upped their Q1 2028 earnings estimates for shares of RLI in a research note issued on Monday, June 1st. Zacks Research analyst Team now expects that the insurance provider will post earnings of $0.49 per share for the quarter, up from their previous estimate of $0.48. Zacks Research has a "Hold" rating on the stock. The consensus estimate for RLI's current full-year earnings is $2.75 per share.

Several other brokerages have also recently commented on RLI. Weiss Ratings cut shares of RLI from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, May 22nd. Wells Fargo & Company decreased their target price on shares of RLI from $59.00 to $55.00 and set an "equal weight" rating for the company in a research note on Thursday, April 9th. 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, Wall Street Zen cut shares of RLI from a "hold" rating to a "sell" rating in a research note on Saturday, May 2nd. One analyst has rated the stock with a Strong Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, RLI has a consensus rating of "Hold" and an average target price of $61.50.

RLI Trading Up 0.8%

Shares of NYSE RLI opened at $51.02 on Wednesday. RLI has a 12 month low of $47.26 and a 12 month high of $77.07. The company has a 50 day simple moving average of $54.40 and a two-hundred day simple moving average of $59.22. The stock has a market cap of $4.69 billion, a price-to-earnings ratio of 11.92 and a beta of 0.41.

RLI (NYSE:RLI - Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The insurance provider reported $0.83 EPS for the quarter, beating the consensus estimate 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 during the quarter, compared to analysts' expectations of $564.47 million. During the same period in the previous year, the business posted $0.92 EPS. The business's quarterly revenue was up 4.0% compared to the same quarter last year.

RLI Increases Dividend

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

Insider Activity

In other news, COO Jennifer L. Klobnak bought 2,000 shares of the firm's stock in a transaction that occurred on Tuesday, May 19th. The stock was purchased at an average cost of $53.42 per share, for a total transaction of $106,840.00. Following the purchase, the chief operating officer directly owned 102,318 shares in the company, valued at approximately $5,465,827.56. This trade represents a 1.99% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Clark C. Kellogg bought 3,000 shares of the firm's stock in a transaction that occurred on Monday, June 1st. The stock was purchased at an average price of $50.90 per share, with a total value of $152,700.00. Following the completion of the purchase, the director owned 4,502 shares in the company, valued at approximately $229,151.80. This trade represents a 199.73% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders have bought 16,500 shares of company stock valued at $858,955. 2.39% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On RLI

A number of large investors have recently added to or reduced their stakes in RLI. Royal Bank of Canada raised its position in RLI by 115.1% during the first quarter. Royal Bank of Canada now owns 56,386 shares of the insurance provider's stock worth $4,529,000 after acquiring an additional 30,170 shares during the period. Goldman Sachs Group Inc. raised its position in RLI by 110.8% during the first quarter. Goldman Sachs Group Inc. now owns 185,504 shares of the insurance provider's stock worth $14,902,000 after acquiring an additional 97,501 shares during the period. Empowered Funds LLC raised its position in RLI by 472.3% during the first quarter. Empowered Funds LLC now owns 29,177 shares of the insurance provider's stock worth $2,344,000 after acquiring an additional 24,079 shares during the period. EverSource Wealth Advisors LLC raised its position in RLI by 46.2% during the second quarter. EverSource Wealth Advisors LLC now owns 1,559 shares of the insurance provider's stock worth $113,000 after acquiring an additional 493 shares during the period. Finally, Amundi raised its position in RLI by 16,550.0% during the second quarter. Amundi now owns 23,976 shares of the insurance provider's stock worth $1,689,000 after acquiring an additional 23,832 shares during the period. 77.89% of the stock is currently owned by institutional investors and hedge funds.

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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