Zacks Research Downgrades RLI (NYSE:RLI) to Strong Sell

RLI (NYSE:RLI) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued on Monday,Zacks.com reports.

Several other research firms also recently issued reports on RLI. Weiss Ratings reiterated a “hold (c)” rating on shares of RLI in a research note on Wednesday, October 8th. Citizens Jmp reaffirmed a “market perform” rating on shares of RLI in a research report on Friday, January 23rd. Truist Financial set a $58.00 price target on RLI in a report on Friday. Keefe, Bruyette & Woods reduced their price objective on shares of RLI from $85.00 to $81.00 and set an “outperform” rating for the company in a research note on Tuesday, January 6th. Finally, Wells Fargo & Company set a $59.00 price objective on shares of RLI and gave the stock an “equal weight” rating in a report on Friday. One equities research analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $65.20.

RLI Stock Performance

RLI stock opened at $57.36 on Monday. The firm has a 50 day moving average of $62.39 and a two-hundred day moving average of $64.16. RLI has a 12 month low of $55.80 and a 12 month high of $81.79. The company has a market capitalization of $5.27 billion, a price-to-earnings ratio of 13.16 and a beta of 0.54. 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 released its quarterly earnings data on Wednesday, January 21st. The insurance provider reported $0.94 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.76 by $0.18. The business had revenue of $465.69 million during the quarter, compared to analyst estimates of $447.53 million. RLI had a net margin of 21.43% and a return on equity of 18.67%. During the same quarter in the previous year, the business earned $0.41 EPS. As a group, equities analysts anticipate that RLI will post 3.08 EPS for the current fiscal year.

Insider Buying and Selling at RLI

In other news, 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 cost of $57.99 per share, with a total value of $115,980.00. Following the completion of the transaction, the chief operating officer directly owned 100,318 shares in the company, valued at $5,817,440.82. This represents a 2.03% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Craig W. Kliethermes purchased 5,000 shares of the business’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 acquisition, the chief executive officer owned 143,990 shares in the company, valued at approximately $8,272,225.50. This represents a 3.60% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 2.16% of the company’s stock.

Institutional Trading of RLI

Institutional investors and hedge funds have recently modified their holdings of the company. Royal Bank of Canada increased its holdings in RLI by 115.1% in the 1st quarter. Royal Bank of Canada now owns 56,386 shares of the insurance provider’s stock valued at $4,529,000 after buying an additional 30,170 shares during the period. Goldman Sachs Group Inc. boosted its position in shares of RLI by 110.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 185,504 shares of the insurance provider’s stock valued at $14,902,000 after acquiring an additional 97,501 shares in the last quarter. Empowered Funds LLC increased its stake in RLI by 472.3% in the first quarter. Empowered Funds LLC now owns 29,177 shares of the insurance provider’s stock valued at $2,344,000 after acquiring an additional 24,079 shares during the period. Wealth Enhancement Advisory Services LLC acquired a new position in RLI in the second quarter worth about $221,000. Finally, Signaturefd LLC raised its position in RLI by 16.0% in the second quarter. Signaturefd LLC now owns 1,240 shares of the insurance provider’s stock worth $90,000 after purchasing an additional 171 shares in the last quarter. 77.89% of the stock is currently 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.