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

RLI Corp. (NYSE:RLI) shares hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $181.64 and last traded at $180.89, with a volume of 167709 shares changing hands. The stock had previously closed at $179.76.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the stock. Wolfe Research assumed coverage on shares of RLI in a research note on Wednesday, October 9th. They set an “outperform” rating and a $182.00 price objective on the stock. Jefferies Financial Group upped their price target on shares of RLI from $165.00 to $180.00 and gave the stock a “buy” rating in a research report on Wednesday, October 9th. Royal Bank of Canada upped their price target on shares of RLI from $162.00 to $165.00 and gave the stock a “sector perform” rating in a research report on Wednesday, October 23rd. Oppenheimer assumed coverage on shares of RLI in a research report on Wednesday, October 16th. They set a “market perform” rating for the company. Finally, Compass Point upped their price target on shares of RLI from $170.00 to $185.00 and gave the stock a “buy” rating in a research report on Friday, October 25th. Three equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $177.40.

RLI Price Performance

The firm’s 50-day moving average price is $162.35 and its 200-day moving average price is $151.43. The company has a market cap of $8.29 billion, a price-to-earnings ratio of 19.88 and a beta of 0.41.

RLI’s stock is set to split on Thursday, January 16th. The 2-1 split was announced on Thursday, November 7th. The newly minted shares will be distributed to shareholders after the closing bell on Wednesday, January 15th.

RLI (NYSE:RLI) last released its quarterly earnings data on Monday, October 21st. The insurance provider reported $1.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.98 by $0.33. RLI had a net margin of 23.77% and a return on equity of 19.03%. The company had revenue of $470.00 million during the quarter, compared to analyst estimates of $491.54 million. During the same quarter in the prior year, the business earned $0.61 earnings per share. The business’s quarterly revenue was up 41.7% compared to the same quarter last year. On average, sell-side analysts anticipate that RLI Corp. will post 5.85 earnings per share for the current year.

RLI Increases Dividend

The company also recently declared a None dividend, which will be paid on Friday, December 20th. Investors of record on Friday, November 29th will be issued a dividend of $4.29 per share. This represents a yield of 0.7%. This is a positive change from RLI’s previous None dividend of $2.25. The ex-dividend date is Friday, November 29th. RLI’s dividend payout ratio (DPR) is presently 12.75%.

Institutional Investors Weigh In On RLI

Large investors have recently added to or reduced their stakes in the company. Motiv8 Investments LLC acquired a new stake in RLI during the 3rd quarter valued at $217,000. Cetera Advisors LLC acquired a new stake in RLI during the 1st quarter valued at $515,000. Hsbc Holdings PLC grew its holdings in RLI by 117.7% during the 2nd quarter. Hsbc Holdings PLC now owns 8,571 shares of the insurance provider’s stock valued at $1,206,000 after purchasing an additional 4,634 shares in the last quarter. Bridges Investment Management Inc. bought a new position in RLI during the 2nd quarter valued at $954,000. Finally, Bruce & Co. Inc. boosted its stake in RLI by 1,020.0% during the 2nd quarter. Bruce & Co. Inc. now owns 22,400 shares of the insurance provider’s stock valued at $3,151,000 after acquiring an additional 20,400 shares during the last quarter. 77.89% of the stock is owned by institutional investors and hedge funds.

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.