RLI (NYSE:RLI) Shares Gap Down – Should You Sell?

RLI Corp. (NYSE:RLI)’s stock price gapped down prior to trading on Friday . The stock had previously closed at $63.92, but opened at $61.91. RLI shares last traded at $62.02, with a volume of 40,141 shares traded.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on RLI shares. Weiss Ratings restated a “hold (c)” rating on shares of RLI in a research report on Wednesday, October 8th. Truist Financial set a $62.00 price target on RLI and gave the company a “hold” rating in a research report on Friday, October 3rd. One investment analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $72.80.

RLI Trading Down 3.1%

The company has a 50 day moving average price of $62.60 and a 200 day moving average price of $67.69. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.35 and a current ratio of 0.35. The firm has a market cap of $5.69 billion, a price-to-earnings ratio of 16.24 and a beta of 0.61.

RLI (NYSE:RLI) last posted its earnings results on Monday, October 20th. The insurance provider reported $0.83 EPS for the quarter, beating analysts’ consensus estimates of $0.62 by $0.21. RLI had a net margin of 19.02% and a return on equity of 16.51%. The company had revenue of $509.26 million for the quarter, compared to analysts’ expectations of $444.75 million. During the same quarter in the prior year, the company posted $1.31 earnings per share. On average, research analysts expect that RLI Corp. will post 3.08 earnings per share for the current year.

RLI Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 19th. Investors of record on Friday, November 28th will be paid a dividend of $0.16 per share. This represents a $0.64 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Friday, November 28th. RLI’s dividend payout ratio is presently 16.80%.

Institutional Investors Weigh In On RLI

Hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. increased its holdings in RLI by 95.2% in the first quarter. Vanguard Group Inc. now owns 8,996,643 shares of the insurance provider’s stock valued at $722,700,000 after buying an additional 4,388,400 shares during the last quarter. Kayne Anderson Rudnick Investment Management LLC lifted its stake in RLI by 117.0% during the first quarter. Kayne Anderson Rudnick Investment Management LLC now owns 5,226,797 shares of the insurance provider’s stock worth $419,869,000 after purchasing an additional 2,817,616 shares during the last quarter. Neuberger Berman Group LLC boosted its holdings in RLI by 106.6% in the first quarter. Neuberger Berman Group LLC now owns 2,750,738 shares of the insurance provider’s stock valued at $220,967,000 after purchasing an additional 1,419,212 shares in the last quarter. Wasatch Advisors LP acquired a new stake in shares of RLI during the second quarter worth about $84,608,000. Finally, Norges Bank acquired a new position in RLI in the second quarter valued at $74,533,000. Institutional investors and hedge funds own 77.89% of the company’s stock.

About RLI

RLI Corp., an insurance holding company, underwrites property and casualty insurance. Its Casualty segment provides commercial and personal coverage products; and general liability products, such as coverage for third-party liability of commercial insureds, including manufacturers, contractors, apartments, and mercantile.