RLI (RLI) Rating Increased to Buy at Zacks Investment Research

RLI (NYSE:RLI) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Monday, January 8th. The firm presently has a $67.00 target price on the insurance provider’s stock. Zacks Investment Research‘s price objective points to a potential upside of 12.87% from the stock’s previous close.

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. The company witnessed its Zacks Consensus Estimate  for 2018 move north by 9% over the last 60 days. However, exposure to catastrophe loss and escalating expenses raise concerns. Shares of RLI Corp have underperformed the industry in a year.”

RLI has been the subject of a number of other reports. Keefe, Bruyette & Woods set a $51.00 price target on RLI and gave the stock a “hold” rating in a report on Wednesday, October 18th. B. Riley reiterated a “neutral” rating on shares of RLI in a report on Monday, November 6th. Finally, Royal Bank of Canada reiterated an “underperform” rating and set a $51.00 price target (up from $50.00) on shares of RLI in a report on Friday, October 20th. Two investment analysts have rated the stock with a sell rating, four have assigned a hold rating and one has issued a buy rating to the company’s stock. RLI has an average rating of “Hold” and an average target price of $57.67.

RLI (RLI) traded down $0.27 during midday trading on Monday, reaching $59.36. The company had a trading volume of 138,540 shares, compared to its average volume of 148,670. The firm has a market capitalization of $2,630.00, a P/E ratio of 32.98 and a beta of 1.30. RLI has a 1-year low of $50.34 and a 1-year high of $62.00. The company has a quick ratio of 0.35, a current ratio of 0.35 and a debt-to-equity ratio of 0.17.

RLI (NYSE:RLI) last posted its quarterly earnings data on Wednesday, October 18th. The insurance provider reported $0.04 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.48 by ($0.44). RLI had a net margin of 9.97% and a return on equity of 8.53%. The company had revenue of $196.20 million during the quarter, compared to analyst estimates of $195.89 million. During the same quarter in the previous year, the company earned $0.37 earnings per share. The business’s revenue for the quarter was down 4.9% on a year-over-year basis. sell-side analysts anticipate that RLI will post 1.56 earnings per share for the current year.

In related news, Director Robert P. Restrepo, Jr. acquired 1,026 shares of the business’s stock in a transaction dated Monday, November 13th. The shares were bought at an average price of $59.30 per share, with a total value of $60,841.80. Following the transaction, the director now directly owns 8,026 shares of the company’s stock, valued at $475,941.80. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Michael J. Stone sold 2,000 shares of the stock in a transaction dated Wednesday, November 29th. The stock was sold at an average price of $60.33, for a total transaction of $120,660.00. The disclosure for this sale can be found here. Insiders have sold a total of 5,141 shares of company stock worth $307,795 in the last three months. Insiders own 6.09% of the company’s stock.

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Stifel Financial Corp lifted its position in RLI by 0.4% in the 2nd quarter. Stifel Financial Corp now owns 20,371 shares of the insurance provider’s stock valued at $1,118,000 after acquiring an additional 91 shares in the last quarter. Los Angeles Capital Management & Equity Research Inc. lifted its position in RLI by 0.7% in the 2nd quarter. Los Angeles Capital Management & Equity Research Inc. now owns 15,180 shares of the insurance provider’s stock valued at $829,000 after acquiring an additional 100 shares in the last quarter. Public Employees Retirement System of Ohio lifted its position in RLI by 0.7% in the 2nd quarter. Public Employees Retirement System of Ohio now owns 32,638 shares of the insurance provider’s stock valued at $1,783,000 after acquiring an additional 236 shares in the last quarter. Amalgamated Bank lifted its position in RLI by 5.0% in the 2nd quarter. Amalgamated Bank now owns 5,306 shares of the insurance provider’s stock valued at $290,000 after acquiring an additional 253 shares in the last quarter. Finally, The Manufacturers Life Insurance Company lifted its position in RLI by 1.9% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 30,117 shares of the insurance provider’s stock valued at $1,646,000 after acquiring an additional 563 shares in the last quarter. 83.58% of the stock is currently owned by institutional investors and hedge funds.

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RLI Company Profile

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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