RLI (NYSE:RLI) Downgraded by Wall Street Zen to Sell

RLI (NYSE:RLI) was downgraded by equities researchers at Wall Street Zen from a “hold” rating to a “sell” rating in a report issued on Monday.

RLI has been the topic of several other research reports. Weiss Ratings cut shares of RLI from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, May 22nd. Wells Fargo & Company upped their price objective on RLI from $55.00 to $62.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 9th. Zacks Research raised RLI from a “strong sell” rating to a “hold” rating in a report on Thursday, April 2nd. Finally, Keefe, Bruyette & Woods raised their target price on RLI from $67.00 to $70.00 and gave the stock an “outperform” rating in a report on Wednesday, July 8th. One equities research analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $60.50.

RLI Trading Down 0.3%

RLI opened at $61.40 on Monday. The company has a market cap of $5.65 billion, a price-to-earnings ratio of 14.35 and a beta of 0.38. The company’s 50 day moving average is $54.78 and its 200 day moving average is $57.46. RLI has a 12-month low of $47.26 and a 12-month high of $71.11.

RLI (NYSE:RLI) last announced its earnings results on Wednesday, April 22nd. The insurance provider reported $0.83 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.73 by $0.10. RLI had a net margin of 20.81% and a return on equity of 17.72%. The company had revenue of $423.87 million during the quarter, compared to analyst estimates of $564.47 million. During the same period in the previous year, the business posted $0.92 earnings per share. The firm’s quarterly revenue was up 4.0% compared to the same quarter last year. As a group, analysts predict that RLI will post 2.75 EPS for the current fiscal year.

Insider Activity

In other news, CEO Craig W. Kliethermes acquired 5,000 shares of RLI stock in a transaction dated Thursday, May 21st. The stock was purchased at an average cost of $52.00 per share, with a total value of $260,000.00. Following the completion of the purchase, the chief executive officer directly owned 148,990 shares in the company, valued at approximately $7,747,480. This trade represents a 3.47% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Clark C. Kellogg acquired 3,000 shares of the firm’s stock in a transaction dated Monday, June 1st. The shares were purchased at an average price of $50.90 per share, for a total transaction of $152,700.00. Following the completion of the transaction, the director directly owned 4,502 shares in the company, valued at approximately $229,151.80. This trade represents a 199.73% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders acquired 16,500 shares of company stock worth $858,955 over the last ninety days. Company insiders own 2.39% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Royal Bank of Canada lifted its position in shares of RLI by 115.1% in the first quarter. Royal Bank of Canada now owns 56,386 shares of the insurance provider’s stock valued at $4,529,000 after acquiring an additional 30,170 shares in the last quarter. Goldman Sachs Group Inc. grew its position in shares of RLI by 110.8% during the first quarter. Goldman Sachs Group Inc. now owns 185,504 shares of the insurance provider’s stock worth $14,902,000 after purchasing an additional 97,501 shares in the last quarter. Empowered Funds LLC grew its position in shares of RLI by 472.3% during the first quarter. Empowered Funds LLC now owns 29,177 shares of the insurance provider’s stock worth $2,344,000 after purchasing an additional 24,079 shares in the last quarter. EverSource Wealth Advisors LLC raised its stake in RLI by 46.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,559 shares of the insurance provider’s stock valued at $113,000 after purchasing an additional 493 shares during the period. Finally, Amundi raised its stake in RLI by 16,550.0% during the 2nd quarter. Amundi now owns 23,976 shares of the insurance provider’s stock valued at $1,689,000 after purchasing an additional 23,832 shares during the period. Hedge funds and other institutional investors own 77.89% of the company’s stock.

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.