RLI (NYSE:RLI) Sets New 52-Week High – Still a Buy?

RLI Corp. (NYSE:RLI) shares reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $174.88 and last traded at $174.71, with a volume of 6865 shares changing hands. The stock had previously closed at $173.65.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on RLI shares. Oppenheimer initiated coverage on RLI in a report on Wednesday, October 16th. They set a “market perform” rating for the company. JMP Securities restated a “market perform” rating on shares of RLI in a research note on Tuesday, July 23rd. Keefe, Bruyette & Woods lifted their target price on RLI from $169.00 to $175.00 and gave the company an “outperform” rating in a research report on Monday, July 29th. Compass Point increased their price target on RLI from $170.00 to $185.00 and gave the company a “buy” rating in a research report on Friday, October 25th. Finally, Jefferies Financial Group upped their price objective on RLI from $165.00 to $180.00 and gave the stock a “buy” rating in a research note on Wednesday, October 9th. Three research analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $177.40.

RLI Stock Performance

The stock’s fifty day simple moving average is $156.99 and its two-hundred day simple moving average is $148.95. The stock has a market capitalization of $8.02 billion, a P/E ratio of 19.17 and a beta of 0.41.

Shares of RLI are set to split before the market opens on Thursday, January 16th. The 2-1 split was announced on Thursday, November 7th. The newly created shares will be issued to shareholders after the market closes on Wednesday, January 15th.

RLI (NYSE:RLI) last issued its quarterly earnings results on Monday, October 21st. The insurance provider reported $1.31 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.98 by $0.33. RLI had a net margin of 23.77% and a return on equity of 19.03%. The firm had revenue of $470.00 million for the quarter, compared to the consensus estimate of $491.54 million. During the same quarter in the previous year, the company earned $0.61 EPS. The company’s revenue for the quarter was up 41.7% on a year-over-year basis. As a group, analysts expect that RLI Corp. will post 5.85 earnings per share for the current fiscal year.

RLI Increases Dividend

The firm also recently declared a None dividend, which will be paid on Friday, December 20th. Shareholders of record on Friday, November 29th will be paid a $4.29 dividend. The ex-dividend date of this dividend is Friday, November 29th. This is a positive change from RLI’s previous None dividend of $2.25. This represents a yield of 0.7%. RLI’s payout ratio is 12.75%.

Institutional Trading of RLI

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RLI. Jacobs Levy Equity Management Inc. raised its position in shares of RLI by 237.7% during the first quarter. Jacobs Levy Equity Management Inc. now owns 207,883 shares of the insurance provider’s stock worth $30,864,000 after purchasing an additional 146,324 shares during the period. Maren Capital LLC boosted its stake in RLI by 21.3% during the 1st quarter. Maren Capital LLC now owns 612,081 shares of the insurance provider’s stock valued at $90,876,000 after purchasing an additional 107,655 shares during the last quarter. Russell Investments Group Ltd. increased its holdings in RLI by 585.0% during the 1st quarter. Russell Investments Group Ltd. now owns 41,649 shares of the insurance provider’s stock worth $6,184,000 after purchasing an additional 35,569 shares in the last quarter. Cubist Systematic Strategies LLC raised its stake in shares of RLI by 2,611.1% in the second quarter. Cubist Systematic Strategies LLC now owns 34,838 shares of the insurance provider’s stock worth $4,901,000 after purchasing an additional 33,553 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD lifted its holdings in shares of RLI by 14.4% in the first quarter. Price T Rowe Associates Inc. MD now owns 265,365 shares of the insurance provider’s stock valued at $39,400,000 after purchasing an additional 33,435 shares in the last quarter. 77.89% of the stock is owned by institutional investors.

RLI Company Profile

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.