RLI Corp. (RLI) Cut to “Hold” at Zacks Investment Research
Zacks Investment Research cut shares of RLI Corp. (NYSE:RLI) from a buy rating to a hold rating in a report issued on Monday morning.
According to Zacks, “RLI Corp. boasts one of the industry’s most profitable P&C writers, with an impressive track record of underwriting profits in 37 of the past 41 years (particularly the last 21 years). Its ability to consistently increase dividend, announce special dividends, maintain combined ratios at favorable levels as well as a solid capital position are other positives. Continuous strategic investments to fortify Casualty segment bode well. The company also remains focused on strengthening its underwriting results and has decided to drop underperforming products in the property business. However, exposure to catastrophe losses and escalating expenses raise concerns. Share of RLI Corp underperformed the industry year to date. Also there were no earnings momentum witnessed over the last 60 days.”
A number of other equities research analysts also recently commented on RLI. BidaskClub downgraded RLI Corp. from a hold rating to a sell rating in a research report on Friday, August 11th. ValuEngine raised RLI Corp. from a sell rating to a hold rating in a research report on Friday, June 2nd. Keefe, Bruyette & Woods set a $51.00 price objective on RLI Corp. and gave the company a hold rating in a research report on Wednesday, May 24th. Royal Bank Of Canada reaffirmed a sell rating and issued a $50.00 price objective on shares of RLI Corp. in a research report on Monday, May 22nd. Finally, FBR & Co reaffirmed a hold rating on shares of RLI Corp. in a research report on Friday, July 21st. Two equities research analysts have rated the stock with a sell rating and five have issued a hold rating to the company’s stock. The company has an average rating of Hold and a consensus target price of $47.00.
RLI Corp. (NYSE RLI) opened at 54.76 on Monday. The firm has a market cap of $2.41 billion, a price-to-earnings ratio of 24.23 and a beta of 1.24. The stock has a 50 day moving average price of $54.39 and a 200 day moving average price of $56.02. RLI Corp. has a 52 week low of $50.34 and a 52 week high of $69.51.
RLI Corp. (NYSE:RLI) last announced its quarterly earnings data on Wednesday, July 19th. The insurance provider reported $0.61 EPS for the quarter, beating the Zacks’ consensus estimate of $0.52 by $0.09. The business had revenue of $196.20 million during the quarter, compared to the consensus estimate of $198.09 million. RLI Corp. had a return on equity of 10.10% and a net margin of 12.38%. The business’s revenue for the quarter was up .1% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.61 earnings per share. Equities research analysts expect that RLI Corp. will post $2.02 EPS for the current year.
The company also recently declared a quarterly dividend, which was paid on Wednesday, September 20th. Shareholders of record on Thursday, August 31st were given a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a yield of 1.53%. The ex-dividend date was Tuesday, August 29th. RLI Corp.’s dividend payout ratio (DPR) is presently 37.17%.
In other news, Director Robert P. Restrepo, Jr. purchased 1,200 shares of the stock in a transaction on Monday, July 24th. The stock was purchased at an average price of $57.58 per share, with a total value of $69,096.00. Following the completion of the transaction, the director now owns 7,000 shares in the company, valued at $403,060. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Michael E. Angelina purchased 1,000 shares of the stock in a transaction on Tuesday, August 22nd. The shares were purchased at an average cost of $54.41 per share, with a total value of $54,410.00. The disclosure for this purchase can be found here. 6.09% of the stock is currently owned by insiders.
A number of hedge funds have recently bought and sold shares of RLI. Bank of Montreal Can grew its position in RLI Corp. by 1.7% during the first quarter. Bank of Montreal Can now owns 2,410 shares of the insurance provider’s stock valued at $144,000 after acquiring an additional 40 shares during the period. Russell Investments Group Ltd. grew its position in RLI Corp. by 100.0% during the first quarter. Russell Investments Group Ltd. now owns 8,600 shares of the insurance provider’s stock valued at $516,000 after acquiring an additional 4,300 shares during the period. Great West Life Assurance Co. Can grew its position in RLI Corp. by 6.4% during the first quarter. Great West Life Assurance Co. Can now owns 53,888 shares of the insurance provider’s stock valued at $3,234,000 after acquiring an additional 3,231 shares during the period. Elkfork Partners LLC grew its position in RLI Corp. by 1.3% during the first quarter. Elkfork Partners LLC now owns 2,652 shares of the insurance provider’s stock valued at $159,000 after acquiring an additional 34 shares during the period. Finally, Comerica Bank grew its position in RLI Corp. by 4.2% during the first quarter. Comerica Bank now owns 42,838 shares of the insurance provider’s stock valued at $2,487,000 after acquiring an additional 1,709 shares during the period. 82.91% of the stock is owned by hedge funds and other institutional investors.
About RLI Corp.
RLI Corp. is a specialty insurance company. The Company underwrites selected property and casualty insurance through subsidiaries, as well as offers insurance coverages in both the specialty admitted, and excess and surplus markets. It operates through Casualty, Property and Surety segments. Its Casualty segment consists of commercial and personal umbrella, general liability, commercial transportation, professional services, small commercial, executive products, medical professional liability and other casualty businesses.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for RLI Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for RLI Corp. and related companies with Analyst Ratings Network's FREE daily email newsletter.