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

RLI (NYSE:RLI) was upgraded by Zacks Investment Research from a “sell” rating to a “buy” rating in a research report issued to clients and investors on Tuesday. The brokerage currently has a $72.00 price objective on the insurance provider’s stock. Zacks Investment Research‘s price target points to a potential upside of 12.38% from the stock’s previous close.

According to Zacks, “Shares of RLI Corp have underperformed the industry in a year. Exposure to catastrophe loss and escalating expenses raise concerns. RLI Corp. is 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 22 years). Its ability to consistently increase dividend, maintain combined ratios at favorable levels as well as boast a solid capital position are other positives. Continuous strategic investments to fortify Casualty segment bode well. It also remains focused on strengthening its underwriting results and has decided to drop the underperforming products from the property business. But, exposure catastrophe loss and escalating expenses raise concerns. Shares of RLI Corp have underperformed the industry in a year’s time. A Zacks Rank #2 and an Earnings ESP of 0.00% makes prediction difficult on earnings release on Apr 18.”

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Shares of NYSE:RLI traded down $0.07 during trading hours on Tuesday, hitting $64.07. 36,432 shares of the company’s stock traded hands, compared to its average volume of 161,511. RLI has a 52 week low of $50.34 and a 52 week high of $65.68. The company has a current ratio of 0.35, a quick ratio of 0.35 and a debt-to-equity ratio of 0.17. The firm has a market cap of $2,800.26, a price-to-earnings ratio of 39.80 and a beta of 1.22.

RLI (NYSE:RLI) last posted its quarterly earnings data on Wednesday, January 24th. The insurance provider reported $0.51 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.48 by $0.03. RLI had a net margin of 13.17% and a return on equity of 8.21%. The company had revenue of $202.74 million during the quarter, compared to analyst estimates of $197.85 million. research analysts forecast that RLI will post 2.17 earnings per share for the current year.

In other RLI news, Director Michael J. Stone sold 1,013 shares of the firm’s stock in a transaction dated Monday, April 2nd. The shares were sold at an average price of $61.52, for a total value of $62,319.76. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Aaron Paul Diefenthaler sold 900 shares of the firm’s stock in a transaction dated Tuesday, January 30th. The stock was sold at an average price of $64.77, for a total transaction of $58,293.00. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 6,913 shares of company stock valued at $447,413. Insiders own 5.54% of the company’s stock.

Institutional investors and hedge funds have recently made changes to their positions in the business. Russell Investments Group Ltd. boosted its holdings in shares of RLI by 172.3% in the third quarter. Russell Investments Group Ltd. now owns 27,432 shares of the insurance provider’s stock worth $1,574,000 after buying an additional 17,358 shares during the period. Swiss National Bank boosted its holdings in shares of RLI by 2.6% in the fourth quarter. Swiss National Bank now owns 63,800 shares of the insurance provider’s stock worth $3,870,000 after buying an additional 1,600 shares during the period. Rhumbline Advisers boosted its holdings in shares of RLI by 14.7% in the fourth quarter. Rhumbline Advisers now owns 99,931 shares of the insurance provider’s stock worth $6,062,000 after buying an additional 12,823 shares during the period. Royce & Associates LP boosted its holdings in shares of RLI by 15.2% in the fourth quarter. Royce & Associates LP now owns 610,918 shares of the insurance provider’s stock worth $37,058,000 after buying an additional 80,458 shares during the period. Finally, Schwab Charles Investment Management Inc. boosted its holdings in shares of RLI by 6.2% in the third quarter. Schwab Charles Investment Management Inc. now owns 256,004 shares of the insurance provider’s stock worth $14,685,000 after buying an additional 14,929 shares during the period. Institutional investors own 87.04% of the company’s stock.

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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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