RLI (NYSE:RLI) Shares Gap Down Following Weak Earnings

RLI Corp. (NYSE:RLI) shares gapped down before the market opened on Thursday following a dissappointing earnings announcement. 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 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.05 by ($0.64). RLI had a net margin of 23.77% and a return on equity of 19.03%.

RLI Cuts Dividend

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

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on RLI shares. Compass Point raised their target price on shares of RLI from $85.00 to $92.50 and gave the company a “buy” rating in a report on Friday, October 25th. Royal Bank of Canada lifted their price objective 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 reaffirmed a “market perform” rating on shares of RLI in a research note on Thursday. Keefe, Bruyette & Woods dropped their price objective on shares of 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 research note on Wednesday, October 16th. They set a “market perform” rating for the company. Three investment analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $91.20.

Insider Activity

In related news, Director Michael J. Stone sold 400 shares of the company’s stock in a transaction dated Thursday, December 12th. The shares were sold at an average price of $84.78, for a total value of $33,910.00. Following the completion of the sale, the director now directly owns 429,622 shares of the company’s stock, valued at $36,421,205.05. This represents a 0.09 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 5.09% of the company’s stock.

Institutional Trading of RLI

A number of hedge funds have recently added to or reduced their stakes in RLI. Motiv8 Investments LLC purchased a new position in shares of RLI in the 3rd quarter valued at approximately $217,000. Hsbc Holdings PLC raised its position in shares of RLI by 117.7% in 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 during the last quarter. Donaldson Capital Management LLC purchased a new position in shares of RLI in the 3rd quarter valued at approximately $3,469,000. American National Bank & Trust raised its position in shares of RLI by 62.5% in the 3rd quarter. American National Bank & Trust now owns 403 shares of the insurance provider’s stock valued at $62,000 after purchasing an additional 155 shares during the last quarter. Finally, D. E. Shaw & Co. Inc. raised its position in shares of RLI by 18.1% in the 2nd quarter. D. E. Shaw & Co. Inc. now owns 161,880 shares of the insurance provider’s stock valued at $22,775,000 after purchasing an additional 24,865 shares during the last quarter. 77.89% of the stock is owned by hedge funds and other institutional investors.

RLI Trading Down 7.9 %

The stock has a market capitalization of $6.59 billion, a PE ratio of 15.79 and a beta of 0.47. The company’s 50-day moving average is $83.32 and its 200 day moving average is $78.80.

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.