RLI Corp Story

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RLI -- USA Stock  

USD 105.72  0.88  0.83%

RLI Corp Calculated Tax Rate is most likely to decrease significantly in the upcoming years. The last year's value of Calculated Tax Rate was reported at 22.31. The current PPandE Turnover is estimated to increase to 23.53, while Net Income Per Employee is projected to decrease to roughly 209.9 K. In this article, we will concentrate on RLI Corp as a potential position in addition to your existing holdings. We will examine why it could be a game-changer for RLI Corp stockholders.
Published over a month ago
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Our current forecast of RLI Corp (NYSE:RLI)
RLI Corp is FAIRLY VALUED at 105.88 per share with modest projections ahead. Over 87.0% of RLI Corp shares are owned by institutional investors. Institutional ownership of RLI Corp refers to the amount of RLI Corp equity owned by mutual funds, pension funds, insurance companies, investment firms, foundations, or other large entities that manage money on behalf of others. Check out our latest analysis of RLI Corp, including its current ownership diagnostics.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as RLI Corp. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for RLI Corp

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of RLI Corp's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of RLI Corp in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as RLI Corp. Your research has to be compared to or analyzed against RLI Corp's peers to derive any actionable benefits. When done correctly, RLI Corp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in RLI Corp.

How important is RLI Corp's Liquidity

RLI Corp financial leverage refers to using borrowed capital as a funding source to finance RLI Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. RLI Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between RLI Corp's total debt and its cash.

How RLI Corp utilizes its cash?

To perform a cash flow analysis of RLI Corp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash RLI Corp is receiving and how much cash it distributes out in a given period. The RLI Corp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
RLI Corp Net Cash Flow from Operations is most likely to increase significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 263.26 Million

RLI Corp exotic insider transaction detected

Legal trades by RLI Corp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
RLI Corp insider trading alert for general transaction of common stock by Susan Fleming, the corporate stakeholder, on 9th of February 2021. This event was filed by Rli Corp with SEC on 2021-02-01. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

An Additional Perspective On RLI Corp

The current bullish price patterns experienced by current RLI Corp shareholders created some momentum for stockholders as it was traded today as low as 99.62 and as high as 103.13 per share. The company management teams have been very successful in rebalancing the company assets at opportune times to take advantage of market volatility in December. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.0. The current volatility is consistent with the ongoing market swings in December 2020 as well as with RLI Corp unsystematic, company-specific events.

Margin Breakdown

EBITDA Margin0.27
Gross Margin0.51
Profit Margin21.13

Will RLI Corp growth be sustainable after the rise?

Maximum drawdown is down to 9.71. It may hint to a possible volatility drop. RLI Corp has relatively low volatility with skewness of 0.71 and kurtosis of 0.31. However, we advise all investors to independently investigate RLI Corp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

While some other firms under the insurance?property & casualty industry are still a bit expensive, RLI Corp may offer a potential longer-term growth to stockholders. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to short some or all of your RLI Corp holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to RLI Corp.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of RLI Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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