Key Points
- CEO Craig Kliethermes acquired 5,000 shares at $57.45 on Jan. 23 for $287,250, increasing his holdings to 143,990 shares (a 3.6% rise); the purchase was disclosed in an SEC filing.
- RLI beat Q4 expectations (EPS $0.94 vs. $0.76 consensus; revenue $465.7M vs. $447.5M), supported by strong underwriting income (~$71M) and a $150M cut to catastrophe reinsurance that could improve margins.
- Analysts are mostly cautious with a consensus "Hold" and $65.20 target; the stock trades between $55.80–$81.79, has a P/E of 13.07, market cap ~ $5.2B, and a 1.1% dividend yield.
RLI Corp. (NYSE:RLI - Get Free Report) COO Jennifer Klobnak purchased 2,000 shares of the stock in a transaction dated Friday, January 23rd. The shares were purchased at an average price of $57.99 per share, with a total value of $115,980.00. Following the transaction, the chief operating officer directly owned 100,318 shares of the company's stock, valued at approximately $5,817,440.82. The trade was a 2.03% increase in their position. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website.
RLI Stock Down 0.5%
RLI stock opened at $56.97 on Friday. The stock has a market cap of $5.23 billion, a PE ratio of 13.07 and a beta of 0.54. The firm's 50-day simple moving average is $62.61 and its 200 day simple moving average is $64.44. RLI Corp. has a fifty-two week low of $55.80 and a fifty-two week high of $81.79. The company has a quick ratio of 0.35, a current ratio of 0.32 and a debt-to-equity ratio of 0.05.
RLI (NYSE:RLI - Get Free Report) last posted its earnings results on Wednesday, January 21st. The insurance provider reported $0.94 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.76 by $0.18. RLI had a net margin of 21.43% and a return on equity of 18.67%. The firm had revenue of $465.69 million during the quarter, compared to analyst estimates of $447.53 million. During the same period in the previous year, the business posted $0.41 EPS. As a group, sell-side analysts predict that RLI Corp. will post 3.08 EPS for the current year.
RLI Dividend Announcement
The firm also recently disclosed a quarterly dividend, which was paid on Friday, December 19th. Investors of record on Friday, November 28th were issued a $0.16 dividend. This represents a $0.64 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend was Friday, November 28th. RLI's dividend payout ratio is 14.68%.
Institutional Trading of RLI
Hedge funds and other institutional investors have recently made changes to their positions in the business. Quent Capital LLC bought a new stake in RLI during the third quarter worth approximately $26,000. Farther Finance Advisors LLC lifted its position in shares of RLI by 94.4% during the 4th quarter. Farther Finance Advisors LLC now owns 414 shares of the insurance provider's stock valued at $26,000 after acquiring an additional 201 shares during the last quarter. Caitong International Asset Management Co. Ltd boosted its stake in shares of RLI by 7,300.0% during the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 370 shares of the insurance provider's stock worth $27,000 after acquiring an additional 365 shares in the last quarter. Clarity Asset Management Inc. acquired a new position in shares of RLI in the 2nd quarter worth $28,000. Finally, Chung Wu Investment Group LLC acquired a new stake in shares of RLI during the second quarter worth $29,000. 77.89% of the stock is currently owned by institutional investors.
Analyst Upgrades and Downgrades
A number of research analysts have issued reports on RLI shares. Truist Financial set a $58.00 price target on RLI in a research report on Friday. Jefferies Financial Group raised shares of RLI from an "underperform" rating to a "hold" rating and set a $52.00 price objective for the company in a report on Friday. Keefe, Bruyette & Woods lowered their target price on shares of RLI from $85.00 to $81.00 and set an "outperform" rating on the stock in a research note on Tuesday, January 6th. Wells Fargo & Company set a $59.00 price target on shares of RLI and gave the stock an "equal weight" rating in a research report on Friday. Finally, Citizens Jmp reiterated a "market perform" rating on shares of RLI in a report on Friday. One equities research analyst has rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $65.20.
Check Out Our Latest Stock Analysis on RLI
Key RLI News
Here are the key news stories impacting RLI this week:
- Positive Sentiment: RLI reported Q4 results that beat estimates (EPS $0.94 vs. ~$0.76 consensus) and topped revenue expectations; management cited solid investment income and expense control, supporting near-term earnings. Earnings Press Release / Transcript
- Positive Sentiment: Underwriting results were strong: underwriting income rose to about $71M for Q4 and the combined ratio was in the low-80s (~82.6–83%), indicating profitable core insurance operations that can support underwriting margins. Underwriting Income Article
- Positive Sentiment: RLI trimmed its catastrophe reinsurance purchases by $150M at the January renewal — management is taking advantage of cheaper reinsurance pricing to lower reinsurance expense and retain more premium, which could boost margins if managed carefully. Reinsurance Renewal Article
- Positive Sentiment: Management highlights disciplined underwriting and substantial book-value growth (~33%), signaling capital strength and a focus on profitable growth rather than top-line share grabbing in a competitive market. Business Strategy / Book Value Article
- Positive Sentiment: Jefferies moved RLI from Underperform to Hold on valuation grounds — a modestly supportive analyst action that reduces near-term downside from that firm’s prior view. Jefferies Upgrade
- Neutral Sentiment: Citizens JMP reaffirmed a market‑perform / MP rating — neutral wording from another shop keeps analyst consensus cautious. Analyst Reaffirmation
- Neutral Sentiment: Full earnings-call transcript is available for detail on reserves, reinsurance strategy and segment performance for investors who want to dig into management commentary. Earnings Call Transcript
- Negative Sentiment: Some analysts (William Blair noted via TipRanks) keep a Hold stance, pointing to slowing premium growth and rising loss costs — key headwinds that could dent future underwriting leverage and justify a cautious view. Analyst Note on Growth & Loss Trends
About RLI
(
Get Free Report)
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.
Further Reading
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