RLI (RLI) Rating Increased to Hold at Zacks Investment Research
RLI (NYSE:RLI) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a note issued to investors on Tuesday.
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 2017 over the last 60 days. Shares of RLI Corp have underperformed the industry year to date. Exposure to catastrophe loss and escalating expenses raise concerns.”
A number of other equities research analysts have also recently issued reports on the company. Keefe, Bruyette & Woods reiterated a “hold” rating and issued a $55.00 target price on shares of RLI in a research note on Wednesday, December 6th. B. Riley reiterated a “neutral” rating on shares of RLI in a research note on Monday, November 6th. Finally, Royal Bank of Canada reiterated an “underperform” rating and issued a $51.00 target price (up from $50.00) on shares of RLI in a research note on Friday, October 20th. Two investment analysts have rated the stock with a sell rating and six have given a hold rating to the company. The stock currently has an average rating of “Hold” and an average target price of $47.75.
RLI (NYSE:RLI) last posted its earnings results on Wednesday, October 18th. The insurance provider reported $0.04 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.44). The company had revenue of $196.20 million during the quarter, compared to the consensus estimate of $195.89 million. RLI had a net margin of 9.97% and a return on equity of 8.53%. The business’s quarterly revenue was down 4.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.37 earnings per share. equities analysts forecast that RLI will post 1.55 EPS for the current year.
In related news, Director Michael J. Stone sold 991 shares of RLI stock in a transaction dated Monday, October 2nd. The shares were sold at an average price of $57.40, for a total transaction of $56,883.40. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Michael J. Stone sold 2,000 shares of RLI stock in a transaction dated Wednesday, November 29th. The shares were 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. Over the last 90 days, insiders have sold 4,991 shares of company stock worth $296,903. Company insiders own 6.09% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the stock. Flinton Capital Management LLC grew its holdings in RLI by 60.3% during the second quarter. Flinton Capital Management LLC now owns 2,000 shares of the insurance provider’s stock worth $109,000 after acquiring an additional 752 shares during the period. Riverhead Capital Management LLC grew its holdings in RLI by 64.0% during the second quarter. Riverhead Capital Management LLC now owns 2,296 shares of the insurance provider’s stock worth $125,000 after acquiring an additional 896 shares during the period. Bank of Montreal Can grew its holdings in RLI by 5.8% during the second quarter. Bank of Montreal Can now owns 2,549 shares of the insurance provider’s stock worth $138,000 after acquiring an additional 139 shares during the period. Zions Bancorporation acquired a new position in RLI during the third quarter worth about $145,000. Finally, Shelton Capital Management acquired a new position in RLI during the second quarter worth about $208,000. Institutional investors and hedge funds own 83.58% of the company’s stock.
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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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