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How to buy RLI stock | $100.76

Own RLI stock in just a few minutes.

Fact checked

RLI Corp is an insurance-property & casualty business based in the US. RLI shares (RLI) are listed on the NYSE and all prices are listed in US Dollars. RLI employs 882 staff and has a trailing 12-month revenue of around USD$943.9 million.

How to buy shares in RLI

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for RLI. Find the stock by name or ticker symbol: RLI. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until RLI reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$100.76, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of RLI, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of RLI. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

RLI share price

Use our graph to track the performance of RLI stocks over time.

RLI shares at a glance

Information last updated 2020-12-02.
Latest market closeUSD$100.76
52-week rangeUSD$64.8555 - USD$104.0813
50-day moving average USD$94.1494
200-day moving average USD$87.5266
Wall St. target priceUSD$101
PE ratio 35.077
Dividend yield USD$0.96 (0.97%)
Earnings per share (TTM) USD$2.791

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy RLI stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

RLI price performance over time

Historical closes compared with the close of $100.76 from 2020-12-09

1 week (2021-01-12) N/A
1 month (2020-12-23) -2.48%
3 months (2020-10-19) N/A
6 months (2020-07-19) N/A
1 year (2020-01-19) N/A
2 years (2019-01-19) N/A
3 years (2018-01-19) N/A
5 years (2016-01-19) N/A

Is RLI under- or over-valued?

Valuing RLI stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of RLI's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

RLI's P/E ratio

RLI's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 35x. In other words, RLI shares trade at around 35x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

RLI's PEG ratio

RLI's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 3.82. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into RLI's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

RLI's EBITDA

RLI's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$144.6 million.

The EBITDA is a measure of a RLI's overall financial performance and is widely used to measure a its profitability.

RLI financials

Revenue TTM USD$943.9 million
Operating margin TTM 14.45%
Gross profit TTM USD$315.9 million
Return on assets TTM 2.34%
Return on equity TTM 12.07%
Profit margin 13.42%
Book value $24.4
Market capitalisation USD$4.4 billion

TTM: trailing 12 months

Shorting RLI shares

There are currently 1.3 million RLI shares held short by investors – that's known as RLI's "short interest". This figure is 11% down from 1.5 million last month.

There are a few different ways that this level of interest in shorting RLI shares can be evaluated.

RLI's "short interest ratio" (SIR)

RLI's "short interest ratio" (SIR) is the quantity of RLI shares currently shorted divided by the average quantity of RLI shares traded daily (recently around 133623.10838446). RLI's SIR currently stands at 9.78. In other words for every 100,000 RLI shares traded daily on the market, roughly 9780 shares are currently held short.

However RLI's short interest can also be evaluated against the total number of RLI shares, or, against the total number of tradable RLI shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case RLI's short interest could be expressed as 0.03% of the outstanding shares (for every 100,000 RLI shares in existence, roughly 30 shares are currently held short) or 0.0454% of the tradable shares (for every 100,000 tradable RLI shares, roughly 45 shares are currently held short).

A SIR below 10% would generally be considered to indicate a fairly optimistic outlook for the share price, with fewer people currently willing to bet against RLI.

Find out more about how you can short RLI stock.

RLI share dividends

79%

Dividend payout ratio: 78.63% of net profits

Recently RLI has paid out, on average, around 78.63% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.97% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), RLI shareholders could enjoy a 0.97% return on their shares, in the form of dividend payments. In RLI's case, that would currently equate to about $0.96 per share.

RLI's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

RLI's most recent dividend payout was on 18 December 2020. The latest dividend was paid out to all shareholders who bought their shares by 27 November 2020 (the "ex-dividend date").

Have RLI's shares ever split?

RLI's shares were split on a 2:1 basis on 16 January 2014. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your RLI shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for RLI shares which in turn could have impacted RLI's share price.

RLI share price volatility

Over the last 12 months, RLI's shares have ranged in value from as little as $64.8555 up to $104.0813. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while RLI's is 0.2638. This would suggest that RLI's shares are less volatile than average (for this exchange).

RLI overview

RLI Corp., an insurance holding company, underwrites property and casualty insurance in the United States and internationally. 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. This segment also offers coverages for security guards and in the areas of onshore energy-related businesses and environmental liability for underground storage tanks, contractors and asbestos, and environmental remediation specialists; and professional liability coverages focuses on providing errors and omission coverage to small to medium-sized design, technical, computer, and miscellaneous professionals. In addition, this segment provides commercial automobile liability and physical damage insurance to local, intermediate and long haul truckers, public transportation entities, and equipment dealers; incidental and related insurance coverages; inland marine coverages; management liability coverages, such as directors and officers liability insurance, fiduciary liability and fidelity coverages, and for various classes of risks, including public and private businesses; and healthcare liability and home business insurance products. The company's Property segment offers commercial property, cargo, hull, protection and indemnity, marine liability, inland marine, homeowners' and dwelling fire, and other property insurance products. Its Surety segment offers small bonds for businesses and individuals; bonds for small to medium-sized contractors; commercial surety bonds for medium-to-large businesses; and commercial surety bonds for the energy, petrochemical, and refining industries. The company also underwrites various reinsurance coverages. It markets its products through branch offices, brokers, and underwriting and independent agents. RLI Corp. was founded in 1965 and is headquartered in Peoria, Illinois.

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