RLI Corp. Analysts Set $72.00 Target Amid Mixed Ratings

RLI Corp. (NYSE:RLI) has received an average target price of $72.00 from analysts covering the firm, according to data from MarketBeat.com. The analysis reflects a consensus recommendation of “Hold” among the seven brokerages evaluating the stock. Within this group, one analyst has assigned a sell rating, five have issued hold ratings, and one has given a buy rating.

Several notable changes have been made recently in analysts’ assessments of RLI. On January 6, 2023, Keefe, Bruyette & Woods adjusted their target price for RLI from $85.00 to $81.00, while maintaining an “outperform” rating. Weiss Ratings reiterated a “hold (c)” rating on October 8, 2023, and Truist Financial set a price objective of $62.00 with a “hold” rating on October 3, 2023.

Recent Earnings Performance

RLI last reported its earnings on October 20, 2023, revealing earnings of $0.83 per share for the quarter. This result exceeded analysts’ expectations, which estimated earnings at $0.62, marking a positive variance of $0.21. The company generated revenues of $509.26 million, significantly surpassing the forecast of $444.75 million. RLI’s return on equity stood at 16.51%, with a net margin of 19.02%. In the same quarter last year, the firm reported earnings of $1.31 per share.

Analysts predict that RLI will achieve earnings per share of $3.08 for the current year, indicating a cautious outlook for the company’s financial performance.

Dividend Announcement

In addition to its earnings report, RLI declared a quarterly dividend of $0.16 per share, which was paid on December 19, 2023. Stockholders who were on record as of November 28, 2023 received this dividend. The ex-dividend date also fell on November 28, 2023. This results in an annualized dividend of $0.64, yielding a dividend yield of 1.1%. RLI’s current dividend payout ratio (DPR) is 16.80%.

Institutional Investor Activity

Recent movements among institutional investors have also been noteworthy. SG Americas Securities LLC significantly increased its stake in RLI by 1,030.2% during the fourth quarter, acquiring 34,009 shares valued at $2,176,000. Diversified Trust Co. raised its holdings by 78.4%, now owning 13,883 shares valued at $888,000.

Elevation Wealth Partners LLC entered a new position in RLI valued at approximately $46,000, while Wealth Enhancement Advisory Services LLC increased its stake by 25.3%, bringing its total to 5,633 shares worth $342,000. Lastly, Impact Capital Partners LLC raised its investment in RLI by 50.2%, now holding 9,082 shares worth $581,000. Overall, institutional investors currently own 77.89% of RLI’s stock.

RLI Corporation is a specialty property and casualty insurance company based in Peoria, Illinois. The firm focuses on underwriting niche risks for businesses and individuals, offering customized coverage solutions through independent agents and brokers. Founded in 1965, RLI has transitioned from its original specialty in contact lens manufacturers to a broader focus on specialty insurance since the 1980s. The company’s strategy emphasizes disciplined underwriting and strong customer service to foster profitability and long-term growth.