RLI (RLI) Stock Rating Lowered by Zacks Investment Research

RLI (NYSE:RLI) was downgraded by Zacks Investment Research from a “buy” rating to a “sell” rating in a report released on Monday, Zacks.com reports.

According to Zacks, “Shares of RLI Corp. have lost in six months’ time, though in line with industry’s loss. Exposure to catastrophe loss and escalating expenses are headwinds. However, RLI Corp. is one of the industry’s most profitable P&C writers with an impressive record of underwriting profits in 38 of the past 41 years (particularly the last 23 years). Ability to steadily increase dividend, maintain combined ratios at favorable levels and boast a solid capital position are other positives. Continuous strategic investments in fortifying Casualty segment also bode well. Accelerated pace in rate hike supports investment results. Moreover, it is focused on boosting its underwriting results and has decided to drop the underperforming products from the property business. A Zacks Rank #4 and an Earnings ESP of +2.56% makes prediction difficult as it reports first quarter earnings on Apr 17. The Zacks Consensus Estimate is  59 cents, down 1.7%.”

RLI has been the subject of several other reports. Compass Point initiated coverage on RLI in a report on Tuesday, January 15th. They set a “sell” rating and a $48.00 price target for the company. TheStreet downgraded RLI from a “b” rating to a “c” rating in a report on Wednesday, January 23rd. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating and one has issued a buy rating to the stock. RLI has an average rating of “Hold” and an average target price of $63.50.



Shares of RLI stock traded down $0.77 during trading hours on Monday, hitting $72.73. The stock had a trading volume of 660 shares, compared to its average volume of 130,830. The company has a market capitalization of $3.27 billion, a P/E ratio of 35.48 and a beta of 0.93. RLI has a twelve month low of $62.30 and a twelve month high of $79.98. The company has a current ratio of 0.37, a quick ratio of 0.37 and a debt-to-equity ratio of 0.18.

RLI (NYSE:RLI) last issued its quarterly earnings results on Wednesday, January 23rd. The insurance provider reported $0.40 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.16 by $0.24. RLI had a return on equity of 10.96% and a net margin of 7.84%. The firm had revenue of $220.96 million during the quarter, compared to the consensus estimate of $217.97 million. During the same period last year, the company earned $1.21 earnings per share. Research analysts predict that RLI will post 2.23 EPS for the current fiscal year.

In other RLI news, Director Michael J. Stone sold 10,000 shares of the stock in a transaction on Thursday, February 28th. The stock was sold at an average price of $70.44, for a total value of $704,400.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Michael J. Stone sold 1,437 shares of the stock in a transaction on Monday, April 1st. The stock was sold at an average price of $71.55, for a total value of $102,817.35. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 15,437 shares of company stock valued at $1,068,937. Corporate insiders own 5.01% of the company’s stock.

A number of large investors have recently added to or reduced their stakes in RLI. Murphy Pohlad Asset Management LLC purchased a new position in shares of RLI in the fourth quarter valued at $27,000. Intercontinental Wealth Advisors LLC purchased a new position in shares of RLI in the fourth quarter valued at $47,000. BlueMountain Capital Management LLC purchased a new position in shares of RLI in the third quarter valued at $121,000. Contravisory Investment Management Inc. purchased a new position in shares of RLI in the first quarter valued at $124,000. Finally, FMR LLC purchased a new position in shares of RLI in the third quarter valued at $163,000. Hedge funds and other institutional investors own 89.29% of the company’s stock.

About RLI

RLI Corp., an insurance holding company, underwrites property and casualty insurance in the United States and internationally. 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.

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