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

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

Wall Street Analyst Weigh In

RLI has been the subject of a number of analyst reports. Jefferies Financial Group lifted their target price on shares of RLI from $165.00 to $180.00 and gave the stock a “buy” rating in a research note on Wednesday, October 9th. Wolfe Research assumed coverage on shares of RLI in a research report on Wednesday, October 9th. They issued an “outperform” rating and a $182.00 price target on the stock. Keefe, Bruyette & Woods increased their price objective on RLI from $169.00 to $175.00 and gave the company an “outperform” rating in a research report on Monday, July 29th. Royal Bank of Canada upped their price objective on shares of RLI from $162.00 to $165.00 and gave the company a “sector perform” rating in a research note on Wednesday, October 23rd. Finally, JMP Securities reissued a “market perform” rating on shares of RLI in a research report on Tuesday, July 23rd. Three investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. Based on data from MarketBeat, RLI has a consensus rating of “Moderate Buy” and a consensus price target of $177.40.

RLI Stock Performance

The firm has a market cap of $8.02 billion, a price-to-earnings ratio of 19.17 and a beta of 0.41. The firm has a 50-day moving average price of $156.99 and a two-hundred day moving average price of $148.95.

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

RLI (NYSE:RLI) last announced its quarterly earnings results on Monday, October 21st. The insurance provider reported $1.31 earnings per share 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 during the quarter, compared to analysts’ expectations of $491.54 million. During the same period in the prior year, the company earned $0.61 EPS. The firm’s revenue was up 41.7% on a year-over-year basis. Research analysts anticipate that RLI Corp. will post 5.85 earnings per share for the current year.

RLI Increases Dividend

The firm also recently announced a None dividend, which will be paid on Friday, December 20th. Investors of record on Friday, November 29th will be given a $4.29 dividend. This is a boost from RLI’s previous None dividend of $2.25. This represents a yield of 0.7%. The ex-dividend date of this dividend is Friday, November 29th. RLI’s dividend payout ratio (DPR) is currently 12.75%.

Institutional Trading of RLI

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Klein Pavlis & Peasley Financial Inc. boosted its stake in shares of RLI by 1.2% during the 3rd quarter. Klein Pavlis & Peasley Financial Inc. now owns 5,757 shares of the insurance provider’s stock valued at $892,000 after buying an additional 68 shares during the period. EverSource Wealth Advisors LLC increased its position in shares of RLI by 45.6% during the second quarter. EverSource Wealth Advisors LLC now owns 246 shares of the insurance provider’s stock valued at $37,000 after purchasing an additional 77 shares during the period. Mercer Global Advisors Inc. ADV lifted its holdings in shares of RLI by 5.8% during the 2nd quarter. Mercer Global Advisors Inc. ADV now owns 1,633 shares of the insurance provider’s stock worth $230,000 after acquiring an additional 89 shares during the period. Inspire Investing LLC boosted its holdings in RLI by 3.8% during the second quarter. Inspire Investing LLC now owns 2,502 shares of the insurance provider’s stock valued at $352,000 after purchasing an additional 92 shares in the last quarter. Finally, OneDigital Investment Advisors LLC boosted its stake in shares of RLI by 2.6% in the 3rd quarter. OneDigital Investment Advisors LLC now owns 3,723 shares of the insurance provider’s stock valued at $577,000 after purchasing an additional 95 shares in the last quarter. 77.89% of the stock is owned by institutional investors and hedge funds.

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.