RLI (RLI) Upgraded by Zacks Investment Research to “Buy”
Zacks Investment Research upgraded shares of RLI (NYSE:RLI) from a hold rating to a buy rating in a research note released on Monday morning. They currently have $67.00 target price on the insurance provider’s stock.
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.”
A number of other equities analysts also recently weighed in on the company. Keefe, Bruyette & Woods reissued a hold rating and set a $55.00 price target on shares of RLI in a research report on Wednesday, December 6th. B. Riley reissued a neutral rating on shares of RLI in a research report on Monday, November 6th. Finally, Royal Bank of Canada reissued an underperform rating and set a $51.00 price target (up previously from $50.00) on shares of RLI in a research report on Friday, October 20th. Two investment analysts have rated the stock with a sell rating, four have issued 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 price target of $57.67.
RLI (NYSE:RLI) last announced its quarterly earnings results on Wednesday, October 18th. The insurance provider reported $0.04 earnings per share for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.44). The business had revenue of $196.20 million for the quarter, compared to analyst estimates of $195.89 million. RLI had a return on equity of 8.53% and a net margin of 9.97%. RLI’s quarterly revenue was down 4.9% compared to the same quarter last year. During the same period last year, the firm earned $0.37 EPS. equities analysts forecast that RLI will post 1.56 EPS for the current fiscal year.
The company also recently announced a special dividend, which was paid on Wednesday, December 27th. Stockholders of record on Thursday, November 30th were given a $1.75 dividend. This represents a dividend yield of 1.42%. The ex-dividend date of this dividend was Wednesday, November 29th. RLI’s payout ratio is 46.67%.
In other news, Director Robert P. Restrepo, Jr. bought 1,026 shares of the firm’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 completion of the transaction, the director now owns 8,026 shares of the company’s stock, valued at $475,941.80. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Michael J. Stone sold 2,000 shares of the company’s stock in a transaction that occurred on Wednesday, November 29th. The shares were sold at an average price of $60.33, for a total value of $120,660.00. The disclosure for this sale can be found here. Insiders sold 5,141 shares of company stock worth $307,795 in the last ninety days. 6.09% of the stock is owned by company insiders.
Several institutional investors have recently bought and sold shares of RLI. Flinton Capital Management LLC grew its position in shares of RLI by 60.3% in the second quarter. Flinton Capital Management LLC now owns 2,000 shares of the insurance provider’s stock valued at $109,000 after purchasing an additional 752 shares during the last quarter. Riverhead Capital Management LLC grew its position in shares of RLI by 64.0% in the second quarter. Riverhead Capital Management LLC now owns 2,296 shares of the insurance provider’s stock valued at $125,000 after purchasing an additional 896 shares during the last quarter. Zions Bancorporation acquired a new position in shares of RLI in the third quarter valued at approximately $145,000. Shelton Capital Management acquired a new position in shares of RLI in the second quarter valued at approximately $208,000. Finally, Virtu KCG Holdings LLC acquired a new position in shares of RLI in the second quarter valued at approximately $250,000. 83.58% of the stock is currently owned by institutional investors.
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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