Demystifying RLI: Insights From 4 Analyst Reviews

RLI RLI underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $165.75, along with a high estimate of $175.00 and a low estimate of $155.00. This upward trend is evident, with the current average reflecting a 4.25% increase from the previous average price target of $159.00.

Breaking Down Analyst Ratings: A Detailed Examination

The perception of RLI by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to RLI. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of RLI compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for RLI's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of RLI's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on RLI analyst ratings.

Discovering RLI: A Closer Look

RLI Corp underwrites property and casualty insurance through its subsidiaries. The company offers insurance coverage in the specialty admitted market, where the products are designed for special risks. It also offers products in the excess and surplus markets, which provides an alternative for customers with risks or loss exposures that generally cannot be written in the standard admitted market. RLI distributes property and casualty insurance through its wholly-owned branch offices that market to wholesale and retail producers. The company's insurance operation segments include Casualty, Property, and Surety and it derives a majority of its revenue from the Casualty segment.

RLI: A Financial Overview

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Positive Revenue Trend: Examining RLI's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 21.9% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: RLI's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 28.75%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): RLI's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 8.72%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.43%, the company showcases effective utilization of assets.

Debt Management: RLI's debt-to-equity ratio is below the industry average at 0.07, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: Simplified

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.