RLI Corp. (NYSE:RLI) Lifted to Buy at Zacks Investment Research
RLI Corp. (NYSE:RLI) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Monday. The firm currently has a $64.00 price objective on the insurance provider’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 11.19% from the stock’s previous close.
According to Zacks, “RLI Corp.’s second-quarter 2017 earnings outpaced our expectations but remained flat year over year due to lower premiums. Shares of RLI Corp. have outperformed the Zacks categorized Property and Casualty insurance industry since the release of its second-quarter results. RLI Corp. is 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.”
RLI has been the topic of a number of other reports. Royal Bank Of Canada restated a “sell” rating and set a $50.00 price objective on shares of RLI Corp. in a research report on Monday, May 22nd. ValuEngine upgraded RLI Corp. from a “sell” rating to a “hold” rating in a report on Friday, June 2nd. Keefe, Bruyette & Woods set a $51.00 price target on RLI Corp. and gave the stock a “hold” rating in a report on Wednesday, May 24th. Finally, FBR & Co reiterated a “hold” rating on shares of RLI Corp. in a report on Thursday, April 20th. One research analyst has rated the stock with a sell rating, four have given a hold rating and one has issued a buy rating to the company. RLI Corp. currently has an average rating of “Hold” and an average target price of $47.00.
RLI Corp. (NYSE RLI) traded down 1.48% during trading on Monday, reaching $56.71. The company had a trading volume of 57,181 shares. The company has a market capitalization of $2.50 billion, a PE ratio of 25.09 and a beta of 1.20. RLI Corp. has a one year low of $52.51 and a one year high of $71.46. The firm’s 50 day moving average is $55.32 and its 200 day moving average is $57.42.
RLI Corp. (NYSE:RLI) last issued its quarterly earnings data on Wednesday, July 19th. The insurance provider reported $0.61 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.52 by $0.09. RLI Corp. had a return on equity of 10.10% and a net margin of 12.38%. The business had revenue of $196.20 million for the quarter, compared to the consensus estimate of $198.09 million. During the same period in the prior year, the business posted $0.61 earnings per share. The company’s quarterly revenue was up .1% compared to the same quarter last year. On average, equities research analysts predict that RLI Corp. will post $1.99 earnings per share for the current year.
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In other news, Director Michael J. Stone sold 5,000 shares of the stock in a transaction that occurred on Wednesday, May 31st. The stock was sold at an average price of $55.25, for a total value of $276,250.00. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Michael J. Stone sold 947 shares of the stock in a transaction that occurred on Wednesday, July 5th. The stock was sold at an average price of $54.76, for a total value of $51,857.72. The disclosure for this sale can be found here. Corporate insiders own 6.09% of the company’s stock.
Several large investors have recently modified their holdings of the company. BlackRock Inc. increased its stake in shares of RLI Corp. by 11,386.7% in the first quarter. BlackRock Inc. now owns 4,695,862 shares of the insurance provider’s stock valued at $281,845,000 after buying an additional 4,654,981 shares during the last quarter. State Street Corp increased its stake in shares of RLI Corp. by 24.3% in the first quarter. State Street Corp now owns 5,555,070 shares of the insurance provider’s stock valued at $371,410,000 after buying an additional 1,085,597 shares during the last quarter. Norges Bank acquired a new stake in shares of RLI Corp. during the fourth quarter valued at $22,277,000. Vanguard Group Inc. increased its stake in shares of RLI Corp. by 7.3% in the first quarter. Vanguard Group Inc. now owns 4,163,098 shares of the insurance provider’s stock valued at $249,869,000 after buying an additional 284,228 shares during the last quarter. Finally, BlackRock Fund Advisors increased its stake in shares of RLI Corp. by 7.8% in the third quarter. BlackRock Fund Advisors now owns 2,616,804 shares of the insurance provider’s stock valued at $178,885,000 after buying an additional 189,675 shares during the last quarter. Hedge funds and other institutional investors own 81.75% of the company’s stock.
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.
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