RLI (NYSE:RLI) Sets New 1-Year Low – What’s Next?

RLI Corp. (NYSE:RLI) shares hit a new 52-week low during trading on Thursday . The stock traded as low as $57.50 and last traded at $56.7240, with a volume of 10576 shares traded. The stock had previously closed at $59.06.

Key Stories Impacting RLI

Here are the key news stories impacting RLI this week:

• Positive Sentiment: RLI reported Q4 results that beat estimates (EPS $0.94 vs. ~$0.76 consensus) and topped revenue expectations; management cited solid investment income and expense control, supporting near-term earnings. Earnings Press Release / Transcript
• Positive Sentiment: Underwriting results were strong: underwriting income rose to about $71M for Q4 and the combined ratio was in the low-80s (~82.6–83%), indicating profitable core insurance operations that can support underwriting margins. Underwriting Income Article
• Positive Sentiment: RLI trimmed its catastrophe reinsurance purchases by $150M at the January renewal — management is taking advantage of cheaper reinsurance pricing to lower reinsurance expense and retain more premium, which could boost margins if managed carefully. Reinsurance Renewal Article
• Positive Sentiment: Management highlights disciplined underwriting and substantial book-value growth (~33%), signaling capital strength and a focus on profitable growth rather than top-line share grabbing in a competitive market. Business Strategy / Book Value Article
• Positive Sentiment: Jefferies moved RLI from Underperform to Hold on valuation grounds — a modestly supportive analyst action that reduces near-term downside from that firm’s prior view. Jefferies Upgrade
• Neutral Sentiment: Citizens JMP reaffirmed a market‑perform / MP rating — neutral wording from another shop keeps analyst consensus cautious. Analyst Reaffirmation
• Neutral Sentiment: Full earnings-call transcript is available for detail on reserves, reinsurance strategy and segment performance for investors who want to dig into management commentary. Earnings Call Transcript
• Negative Sentiment: Some analysts (William Blair noted via TipRanks) keep a Hold stance, pointing to slowing premium growth and rising loss costs — key headwinds that could dent future underwriting leverage and justify a cautious view. Analyst Note on Growth & Loss Trends

Analyst Ratings Changes

RLI has been the topic of a number of research analyst reports. Citizens Jmp reaffirmed a “market perform” rating on shares of RLI in a report on Friday. Jefferies Financial Group raised shares of RLI from an “underperform” rating to a “hold” rating and set a $52.00 target price on the stock in a research report on Friday. Keefe, Bruyette & Woods decreased their price target on shares of RLI from $85.00 to $81.00 and set an “outperform” rating on the stock in a research report on Tuesday, January 6th. Truist Financial set a $58.00 target price on shares of RLI in a research note on Friday. Finally, Wells Fargo & Company set a $59.00 price objective on RLI and gave the stock an “equal weight” rating in a research report on Friday. One equities research analyst has rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $65.20.

RLI Stock Performance

The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.35 and a current ratio of 0.32. The company has a market capitalization of $5.23 billion, a P/E ratio of 13.07 and a beta of 0.54. The firm has a 50 day moving average price of $62.61 and a two-hundred day moving average price of $64.44.

RLI (NYSE:RLI) last announced its quarterly earnings results on Wednesday, January 21st. The insurance provider reported $0.94 EPS for the quarter, beating the consensus estimate of $0.76 by $0.18. The business had revenue of $465.69 million for the quarter, compared to analyst estimates of $447.53 million. RLI had a return on equity of 18.67% and a net margin of 21.43%.During the same quarter in the previous year, the firm earned $0.41 EPS. On average, research analysts expect that RLI Corp. will post 3.08 earnings per share for the current fiscal year.

RLI Announces Dividend

The company also recently declared 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. This represents a $0.64 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Friday, November 28th. RLI’s dividend payout ratio (DPR) is currently 14.68%.

Insider Activity

In other RLI news, COO Jennifer L. Klobnak bought 2,000 shares of RLI stock in a transaction dated 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 acquisition, the chief operating officer directly owned 100,318 shares of the company’s stock, valued at $5,817,440.82. The trade was a 2.03% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Craig W. Kliethermes purchased 5,000 shares of the company’s stock in a transaction that occurred on Friday, January 23rd. The shares were acquired at an average cost of $57.45 per share, with a total value of $287,250.00. Following the completion of the acquisition, the chief executive officer directly 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. 2.16% of the stock is currently owned by corporate insiders.

Institutional Trading of RLI

Large investors have recently made changes to their positions in the business. Wasatch Advisors LP bought a new position in shares of RLI in the second quarter valued at about $84,608,000. Norges Bank acquired a new stake in RLI in the 2nd quarter valued at about $74,533,000. Two Sigma Investments LP increased its position in RLI by 353.1% in the 3rd quarter. Two Sigma Investments LP now owns 446,378 shares of the insurance provider’s stock valued at $29,113,000 after acquiring an additional 347,858 shares in the last quarter. UBS Group AG raised its stake in shares of RLI by 102.7% in the third quarter. UBS Group AG now owns 558,613 shares of the insurance provider’s stock worth $36,433,000 after acquiring an additional 283,083 shares during the last quarter. Finally, State Street Corp grew its stake in shares of RLI by 3.3% during the third quarter. State Street Corp now owns 8,750,315 shares of the insurance provider’s stock valued at $570,696,000 after purchasing an additional 279,983 shares during the last quarter. Institutional investors 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.