RLI (NYSE:RLI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Monday.

According to Zacks, “RLI Corp.’s third-quarter earnings per share missed estimates. However, the bottom line surged 11-fold year over year on improved premiums across most product lines along with higher net investment income. But losses from Hurricane Florence were a drag. Shares of RLI Corp have outperformed the industry year to date. The company is one of the industry’s most profitable P&C writers with an impressive record of underwriting profits in 37 of the past 41 years (particularly the last 22 years). Its ability to steadily increase dividend, maintain combined ratios at favorable levels and boast a solid capital position are other positives. Continuous strategic investments to fortify Casualty segment also bode well. Moreover, the company is focused on boosting its underwriting results and has decided to drop the underperforming products from the property business. However, exposure to catastrophe loss and escalating expenses raise concerns.”

Several other brokerages have also recently issued reports on RLI. B. Riley raised their target price on RLI from $66.00 to $72.00 and gave the stock a “neutral” rating in a research report on Wednesday, October 3rd. ValuEngine raised RLI from a “hold” rating to a “buy” rating in a research report on Friday, July 20th. Royal Bank of Canada raised RLI from an “underperform” rating to a “sector perform” rating in a research report on Friday, July 20th. Finally, Keefe, Bruyette & Woods reaffirmed a “hold” rating and set a $57.00 price objective on shares of RLI in a research report on Friday, July 20th. Four equities research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company’s stock. RLI presently has an average rating of “Hold” and a consensus target price of $69.33.

Shares of NYSE:RLI opened at $70.45 on Monday. The stock has a market capitalization of $3.12 billion, a price-to-earnings ratio of 43.76 and a beta of 1.22. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.35 and a current ratio of 0.36. RLI has a 52-week low of $56.94 and a 52-week high of $79.98.

RLI (NYSE:RLI) last announced its earnings results on Wednesday, October 17th. The insurance provider reported $0.46 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.50 by ($0.04). The firm had revenue of $217.13 million during the quarter, compared to analysts’ expectations of $214.55 million. RLI had a return on equity of 11.39% and a net margin of 16.64%. As a group, equities analysts anticipate that RLI will post 2.23 EPS for the current year.

In other news, Director Michael J. Stone sold 1,422 shares of RLI stock in a transaction dated Monday, October 1st. The stock was sold at an average price of $77.63, for a total transaction of $110,389.86. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Michael J. Stone sold 5,000 shares of RLI stock in a transaction dated Thursday, September 6th. The shares were sold at an average price of $77.84, for a total value of $389,200.00. The disclosure for this sale can be found here. 5.54% of the stock is owned by insiders.

Several hedge funds have recently bought and sold shares of RLI. Russell Investments Group Ltd. raised its stake in RLI by 13.1% during the 1st quarter. Russell Investments Group Ltd. now owns 28,726 shares of the insurance provider’s stock valued at $1,821,000 after purchasing an additional 3,319 shares during the period. Stifel Financial Corp raised its stake in RLI by 12.5% during the 1st quarter. Stifel Financial Corp now owns 23,608 shares of the insurance provider’s stock valued at $1,498,000 after purchasing an additional 2,616 shares during the period. Commonwealth Equity Services LLC bought a new stake in RLI during the 1st quarter valued at approximately $201,000. Barclays PLC raised its stake in RLI by 140.5% during the 1st quarter. Barclays PLC now owns 14,705 shares of the insurance provider’s stock valued at $932,000 after purchasing an additional 8,590 shares during the period. Finally, Xact Kapitalforvaltning AB raised its stake in RLI by 54.8% during the 1st quarter. Xact Kapitalforvaltning AB now owns 5,930 shares of the insurance provider’s stock valued at $376,000 after purchasing an additional 2,100 shares during the period. 85.81% of the stock is currently owned by hedge funds and other institutional investors.

About RLI

RLI Corp., an insurance holding company, underwrites property and casualty insurance in the United States and internationally. Its Casualty segment provides commercial and personal coverage products; and general liability products, such as coverage for third-party liability of commercial insureds, including manufacturers, contractors, apartments, real estate investment trusts, and mercantile.

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