RLI (NYSE:RLI) Cut to “Strong Sell” at Zacks Research

Zacks Research lowered shares of RLI (NYSE:RLI) from a hold rating to a strong sell rating in a research note released on Monday morning,Zacks.com reports.

A number of other research analysts also recently commented on the company. Wells Fargo & Company set a $59.00 price objective on RLI and gave the stock an “equal weight” rating in a research note on Friday, January 23rd. Keefe, Bruyette & Woods reduced their price target on shares of RLI from $85.00 to $81.00 and set an “outperform” rating for the company in a report on Tuesday, January 6th. Truist Financial set a $58.00 price objective 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 note on Friday, January 23rd. Finally, Citizens Jmp restated a “market perform” rating on shares of RLI in a research note on Friday, January 23rd. One analyst has rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $65.20.

RLI Price Performance

Shares of NYSE:RLI opened at $57.03 on Monday. The company has a market cap of $5.24 billion, a PE ratio of 13.08 and a beta of 0.54. RLI has a fifty-two week low of $55.80 and a fifty-two week high of $81.79. The firm has a 50-day simple moving average of $62.26 and a 200 day simple moving average of $64.11. The company has a quick ratio of 0.35, a current ratio of 0.32 and a debt-to-equity ratio of 0.05.

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

RLI Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, December 19th. Investors of record on Friday, November 28th were issued a dividend of $0.16 per share. The ex-dividend date of this dividend was Friday, November 28th. This represents a $0.64 annualized dividend and a yield of 1.1%. RLI’s payout ratio is presently 14.68%.

Insider Buying and Selling

In other news, CEO Craig W. Kliethermes purchased 5,000 shares of the firm’s stock in a transaction on Friday, January 23rd. The stock was purchased at an average cost of $57.45 per share, with a total value of $287,250.00. Following the purchase, the chief executive officer owned 143,990 shares in the company, valued at $8,272,225.50. This trade represents a 3.60% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, COO Jennifer L. Klobnak acquired 2,000 shares of the business’s stock in a transaction dated Friday, January 23rd. The stock was purchased 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 approximately $5,817,440.82. This trade 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.

Hedge Funds Weigh In On RLI

Several hedge funds have recently made changes to their positions in RLI. Quent Capital LLC bought a new stake in RLI during the third quarter worth approximately $26,000. Farther Finance Advisors LLC lifted its position in shares of RLI by 94.4% during the 4th 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. Caitong International Asset Management Co. Ltd boosted its stake in shares of RLI by 7,300.0% during the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 370 shares of the insurance provider’s stock worth $27,000 after acquiring an additional 365 shares in the last quarter. Clarity Asset Management Inc. acquired a new position in shares of RLI in the 2nd quarter worth $28,000. Finally, Chung Wu Investment Group LLC acquired a new position in shares of RLI in the 2nd quarter worth $29,000. 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.