RLI (NYSE:RLI) Shares Gap Down – Here’s What Happened

RLI Corp. (NYSE:RLI) shares gapped down before the market opened on Friday . The stock had previously closed at $51.50, but opened at $49.24. RLI shares last traded at $49.55, with a volume of 22,128 shares traded.

Analyst Upgrades and Downgrades

A number of brokerages have commented on RLI. Wells Fargo & Company reduced their price objective on RLI from $59.00 to $55.00 and set an “equal weight” rating on the stock in a research note on Thursday, April 9th. Wall Street Zen cut RLI from a “hold” rating to a “sell” rating in a research note on Saturday, May 2nd. Zacks Research upgraded shares of RLI from a “strong sell” rating to a “hold” rating in a research note on Thursday, April 2nd. Weiss Ratings downgraded RLI from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, May 22nd. Finally, Keefe, Bruyette & Woods upgraded RLI from a “moderate buy” rating to a “strong-buy” rating in a report on Tuesday, February 24th. One analyst has rated the stock with a Strong Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $61.50.

RLI Stock Performance

The firm has a market cap of $4.64 billion, a P/E ratio of 11.77 and a beta of 0.42. The firm has a fifty day moving average of $54.72 and a 200-day moving average of $59.38.

RLI (NYSE:RLI) last announced its quarterly earnings results on Wednesday, April 22nd. The insurance provider reported $0.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.73 by $0.10. RLI had a return on equity of 17.72% and a net margin of 20.81%.The business had revenue of $423.87 million for the quarter, compared to the consensus estimate of $564.47 million. During the same quarter last year, the business posted $0.92 EPS. The business’s revenue was up 4.0% on a year-over-year basis. Equities research analysts expect that RLI Corp. will post 2.75 earnings per share for the current year.

RLI Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 12th. Investors of record on Friday, May 29th will be issued a $0.18 dividend. This is a positive change from RLI’s previous quarterly dividend of $0.16. The ex-dividend date of this dividend is Friday, May 29th. This represents a $0.72 dividend on an annualized basis and a yield of 1.4%. RLI’s dividend payout ratio is currently 14.95%.

Insider Activity

In other news, CEO Craig W. Kliethermes bought 2,000 shares of the company’s stock in a transaction that occurred on Wednesday, May 27th. The shares were purchased at an average price of $52.00 per share, with a total value of $104,000.00. Following the completion of the acquisition, the chief executive officer directly owned 150,990 shares in the company, valued at approximately $7,851,480. This trade represents a 1.34% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Jennifer L. Klobnak bought 2,000 shares of the company’s stock in a transaction that occurred on Wednesday, May 27th. The shares were purchased at an average cost of $52.72 per share, for a total transaction of $105,440.00. Following the acquisition, the chief operating officer owned 104,318 shares of the company’s stock, valued at $5,499,644.96. This represents a 1.95% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders purchased 11,000 shares of company stock valued at $576,280 in the last ninety days. Corporate insiders own 2.39% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of RLI. Wasatch Advisors LP acquired a new position in RLI during the second quarter worth about $84,608,000. Norges Bank acquired a new stake in shares of RLI during the fourth quarter valued at approximately $66,997,000. Victory Capital Management Inc. grew its holdings in shares of RLI by 6,060.1% during the fourth quarter. Victory Capital Management Inc. now owns 739,709 shares of the insurance provider’s stock valued at $47,327,000 after buying an additional 727,701 shares in the last quarter. First Trust Advisors LP grew its holdings in shares of RLI by 311.6% during the first quarter. First Trust Advisors LP now owns 688,318 shares of the insurance provider’s stock valued at $39,262,000 after buying an additional 521,096 shares in the last quarter. Finally, Bank of Montreal Can boosted its holdings in shares of RLI by 3,664.4% during the fourth quarter. Bank of Montreal Can now owns 368,384 shares of the insurance provider’s stock worth $23,569,000 after purchasing an additional 358,598 shares during the period. 77.89% of the stock is owned by institutional investors and hedge funds.

RLI Company Profile

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.