RLI (NYSE:RLI) Shares Gap Down After Earnings Miss

RLI Corp. (NYSE:RLI)’s share price gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $78.07, but opened at $70.84. RLI shares last traded at $70.48, with a volume of 132,682 shares changing hands.

The insurance provider reported $0.41 EPS for the quarter, missing analysts’ consensus estimates of $1.05 by ($0.64). RLI had a return on equity of 19.03% and a net margin of 23.77%.

RLI Cuts Dividend

The firm also recently disclosed a None dividend, which was paid on Friday, December 20th. Shareholders of record on Friday, November 29th were issued a $2.145 dividend. This represents a yield of 0.7%. The ex-dividend date of this dividend was Friday, November 29th. RLI’s payout ratio is currently 12.75%.

Wall Street Analysts Forecast Growth

RLI has been the subject of several recent analyst reports. Wolfe Research began coverage on shares of RLI in a report on Wednesday, October 9th. They issued an “outperform” rating and a $91.00 price target for the company. Royal Bank of Canada raised their target price on shares of RLI from $81.00 to $82.50 and gave the stock a “sector perform” rating in a research note on Wednesday, October 23rd. JMP Securities reissued a “market perform” rating on shares of RLI in a research note on Thursday. Keefe, Bruyette & Woods cut their target price on RLI from $100.50 to $100.00 and set an “outperform” rating for the company in a research note on Friday, January 10th. Finally, Oppenheimer assumed coverage on shares of RLI in a report on Wednesday, October 16th. They issued a “market perform” rating for the company. Three analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $91.20.

Insider Activity

In other news, Director Michael J. Stone sold 400 shares of the business’s stock in a transaction that occurred on Thursday, December 12th. The stock was sold at an average price of $84.78, for a total value of $33,910.00. Following the transaction, the director now owns 429,622 shares of the company’s stock, valued at approximately $36,421,205.05. The trade was a 0.09 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 5.09% of the company’s stock.

Institutional Investors Weigh In On RLI

Several institutional investors have recently modified their holdings of the company. UMB Bank n.a. raised its position in shares of RLI by 620.0% in the third quarter. UMB Bank n.a. now owns 180 shares of the insurance provider’s stock valued at $28,000 after buying an additional 155 shares during the last quarter. Versant Capital Management Inc boosted its holdings in shares of RLI by 53.8% during the fourth quarter. Versant Capital Management Inc now owns 203 shares of the insurance provider’s stock worth $33,000 after purchasing an additional 71 shares during the last quarter. V Square Quantitative Management LLC purchased a new stake in shares of RLI in the third quarter valued at $32,000. Nomura Asset Management Co. Ltd. lifted its position in RLI by 76.9% during the third quarter. Nomura Asset Management Co. Ltd. now owns 230 shares of the insurance provider’s stock worth $36,000 after buying an additional 100 shares during the period. Finally, EverSource Wealth Advisors LLC boosted its stake in RLI by 45.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 246 shares of the insurance provider’s stock worth $37,000 after buying an additional 77 shares during the last quarter. Hedge funds and other institutional investors own 77.89% of the company’s stock.

RLI Stock Performance

The company has a market cap of $6.44 billion, a PE ratio of 15.44 and a beta of 0.47. The firm has a fifty day simple moving average of $83.32 and a 200 day simple moving average of $78.80.

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.