Short Interest in RLI Corp. (NYSE:RLI) Increases By 29.2%

RLI Corp. (NYSE:RLI) saw a significant growth in short interest in the month of January. As of January 30th, there was short interest totaling 3,599,984 shares, a growth of 29.2% from the January 15th total of 2,785,912 shares. Based on an average daily volume of 1,180,642 shares, the days-to-cover ratio is currently 3.0 days. Approximately 4.0% of the company’s stock are short sold. Approximately 4.0% of the company’s stock are short sold. Based on an average daily volume of 1,180,642 shares, the days-to-cover ratio is currently 3.0 days.

Key Headlines Impacting RLI

Here are the key news stories impacting RLI this week:

• Positive Sentiment: Zacks Research raised its Q3 2027 EPS estimate slightly to $0.61 from $0.59, a modest upward revision that could be read as a small near-term improvement in earnings visibility for RLI. Note the firm still carries a “Strong Sell” rating, limiting the upside impact.
• Neutral Sentiment: FPA Queens Road Small Cap Value Fund published commentary on RLI, signaling investor interest from a small‑cap/value manager. The piece draws attention to the name but does not present a clear short‑term catalyst or recommendation that should materially move consensus by itself. FPA Queens Road Small Cap Value Fund’s Thoughts on RLI Corp. (RLI)
• Negative Sentiment: Zacks Research issued a series of downward EPS revisions across 2026–2028 and reiterated a “Strong Sell” stance. Highlights: Q4 2027 cut from $0.85 to $0.60; Q4 2026 from $0.74 to $0.66; Q2 2027 from $0.73 to $0.69; Q3 2026 from $0.58 to $0.55; Q2 2026 from $0.78 to $0.74; Q1 2026 from $0.85 to $0.81. They also trimmed FY2026 to $2.76 (from $2.94) and FY2027 to $2.70 (from $2.96), and set FY2028 at $2.51. These multiple cuts and the negative rating create downside pressure by lowering earnings expectations and signaling caution to investors.

Insiders Place Their Bets

In other RLI news, COO Jennifer L. Klobnak purchased 2,000 shares of the company’s stock in a transaction that occurred on Friday, January 23rd. The shares were acquired at an average price of $57.99 per share, with a total value of $115,980.00. Following the transaction, the chief operating officer owned 100,318 shares in the company, valued at $5,817,440.82. The trade was a 2.03% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Craig W. Kliethermes purchased 5,000 shares of the business’s stock in a transaction on Friday, January 23rd. The shares were bought at an average price of $57.45 per share, with a total value of $287,250.00. Following the purchase, the chief executive officer directly owned 143,990 shares in the company, valued at approximately $8,272,225.50. The trade was a 3.60% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 2.16% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Royal Bank of Canada boosted its holdings 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 worth $4,529,000 after acquiring an additional 30,170 shares during the period. Goldman Sachs Group Inc. grew its holdings in RLI by 110.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 185,504 shares of the insurance provider’s stock valued at $14,902,000 after buying an additional 97,501 shares in the last quarter. Empowered Funds LLC increased 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 valued at $2,344,000 after buying an additional 24,079 shares during the period. Vanguard Personalized Indexing Management LLC lifted its holdings in shares of RLI by 16.4% in the second quarter. Vanguard Personalized Indexing Management LLC now owns 9,961 shares of the insurance provider’s stock worth $719,000 after buying an additional 1,400 shares in the last quarter. Finally, CWM LLC boosted its position in shares of RLI by 3.7% in the second quarter. CWM LLC now owns 8,215 shares of the insurance provider’s stock valued at $593,000 after acquiring an additional 293 shares during the period. 77.89% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities analysts have weighed in on RLI shares. Truist Financial set a $58.00 price objective on RLI in a research note on Friday, January 23rd. Wells Fargo & Company set a $59.00 price target on shares of RLI and gave the company an “equal weight” rating in a research report on Friday, January 23rd. Zacks Research downgraded shares of RLI from a “hold” rating to a “strong sell” rating in a research report on Monday, January 26th. Keefe, Bruyette & Woods dropped their target price on shares of RLI from $85.00 to $81.00 and set an “outperform” rating on the stock in a research report on Tuesday, January 6th. Finally, Jefferies Financial Group upgraded RLI from an “underperform” rating to a “hold” rating and set a $52.00 price target on the stock in a report on Friday, January 23rd. One analyst has rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $65.20.

RLI Price Performance

RLI stock opened at $61.58 on Monday. The business’s 50 day simple moving average is $61.69 and its 200 day simple moving average is $63.39. RLI has a 12 month low of $55.80 and a 12 month high of $81.79. The company has a market cap of $5.66 billion, a price-to-earnings ratio of 14.12 and a beta of 0.53. The company has a current ratio of 0.32, a quick ratio of 0.35 and a debt-to-equity ratio of 0.05.

RLI (NYSE:RLI) last issued its quarterly earnings results on Wednesday, January 21st. The insurance provider reported $0.94 EPS for the quarter, beating analysts’ consensus estimates of $0.76 by $0.18. RLI had a return on equity of 18.67% and a net margin of 21.43%.The firm had revenue of $465.69 million for the quarter, compared to analysts’ expectations of $447.53 million. During the same quarter in the prior year, the firm earned $0.41 EPS. Sell-side analysts forecast that RLI will post 3.08 EPS for the current year.

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.