Should you short it before the Earnings result? : RLI (NYSE:RLI)

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Earnings results for RLI (NYSE:RLI)

RLI Corp. is expected* to report earnings on 10/21/2020 after market close. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 2 analysts’ forecasts, the consensus EPS forecast for the quarter is $-0.1. The reported EPS for the same quarter last year was $0.57.

RLI last issued its quarterly earnings results on July 22nd, 2020. The insurance provider reported $0.77 EPS for the quarter, topping analysts’ consensus estimates of $0.47 by $0.30. The firm had revenue of $225.65 million for the quarter, compared to analyst estimates of $233.31 million. RLI has generated $2.57 earnings per share over the last year and currently has a price-to-earnings ratio of 32.5. RLI has confirmed that its next quarterly earnings report will be published on Wednesday, October 21st, 2020.

Analyst Opinion on RLI (NYSE:RLI)

4 Wall Street analysts have issued ratings and price targets for RLI in the last 12 months. Their average twelve-month price target is $95.00, predicting that the stock has a possible upside of 13.65%. The high price target for RLI is $110.00 and the low price target for RLI is $85.00. There are currently 3 hold ratings and 1 buy rating for the stock, resulting in a consensus rating of “Hold.”

RLI has received a consensus rating of Hold. The company’s average rating score is 2.25, and is based on 1 buy rating, 3 hold ratings, and no sell ratings. According to analysts’ consensus price target of $95.00, RLI has a forecasted upside of 13.6% from its current price of $83.59. RLI has only been the subject of 2 research reports in the past 90 days.

Dividend Strength: RLI (NYSE:RLI)

RLI has a dividend yield of 1.16%, which is in the bottom 25% of all stocks that pay dividends. RLI has been increasing its dividend for 24 years. The dividend payout ratio of RLI is 37.35%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, RLI will have a dividend payout ratio of 36.50% next year. This indicates that RLI will be able to sustain or increase its dividend.

Insiders buying/selling: RLI (NYSE:RLI)

In the past three months, RLI insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $891,667.00 in company stock. Only 5.06% of the stock of RLI is held by insiders. 86.45% of the stock of RLI is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of RLI (NYSE:RLI

Earnings for RLI are expected to grow by 3.95% in the coming year, from $2.53 to $2.63 per share. The P/E ratio of RLI is 32.53, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 19.70. The P/E ratio of RLI is 32.53, which means that it is trading at a more expensive P/E ratio than the Finance sector average P/E ratio of about 18.30. RLI has a P/B Ratio of 3.77. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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