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RLI Corp. (RLI) Stock Analysis

Falling Knife setup

SellModerate Confidence

Financial Services · Insurance - Property & Casualty

Sell if holding. Analyst target reached at $51.30 — A.R:R is negative (-0.8) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: Florida, California, Texas, New York (56.0%).

RLI Corp. underwrites specialty property, casualty, and surety insurance through RLI Ins., Mt. Hawley, and CBIC subsidiaries in the U.S.; $1,614M net premiums earned in 2025 (casualty 60%, property 31%, surety 9%). Revenue comes from specialty admitted and excess/surplus lines... Read more

$51.30+14.0% A.UpsideScore 4.5/10#28 of 29 Insurance - Property & Casualty
Stop $49.11Target $58.57(resistance)A.R:R -0.8:1
Analyst target$57.75+12.6%4 analysts
$58.57our TP
$51.30price
$57.75mean
$67

Sell if holding. Analyst target reached at $51.30 — A.R:R is negative (-0.8) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: Florida, California, Texas, New York (56.0%). Chart setup: Death cross, below all MAs, RSI 25, MACD bearish. Score 4.5/10, moderate confidence.

Passes 4/7 gates (clean insider activity, no SEC red flags, earnings proximity 81d clear, semi cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: aggressive.

Thesis

Rewards
Strong earnings beat streak (4/4)
Risks
Concentration risk — Geographic: Florida, California, Texas, New York (56.0%)
Analyst target reached - limited upside remaining
Weak overall score: 4.5/10

Key Metrics

P/E (TTM)11.9
P/E (Fwd)18.4
Mkt Cap$4.7B
EV/EBITDA9.0
Profit Mgn20.8%
ROE23.2%
Rev Growth4.0%
Beta0.48
Dividend1.25%
Rating analysts12

Quality Signals

Piotroski F7/9

Options Flow

P/C7.33bearish
IV29%low
Max Pain$70+36.5% vs spot

Concentration Risks(10-K Item 1A)

  • HIGHGeographicFlorida, California, Texas, New York56%
    10-K Item 1A: '56 percent of our direct premiums earned were generated in four states in 2025: Florida – 18 percent; California – 18 percent; Texas – 11 percent; and New York – 9 percent'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

3 floor-breakers

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Macd
0.0
Volume
0.0
Obv
1.0
Ma Position
1.0
Rsi
3.0
Capitulation risk (RSI 25, below 200MA)Volume distribution (falling OBV)Below 200-MA, MA slope -3.1%/30d — confirmed downtrend

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Earnings Growth
0.0
Revenue Growth
3.5

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Growth Rank
2.1
Value Rank
2.7
Quality Rank
7.4
GatesMomentum 1.0<4.5A.R:R -0.8=NEGATIVEDeath cross (50MA < 200MA)Insider activity: OKNo SEC red flagsEARNINGS PROXIMITY 81d clearSEMI CYCLE PEAK CLEARFalling KnifeSuitability: Aggressive
RSI
25 · Oversold
20D MA 50D MA 200D MADEATH CROSSSupport $50.63Resistance $59.77

Price Targets

$49
$59
A.Upside+14.2%
A.R:R-0.8:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeCautious

Risk Alerts

! Target reached (-4.4% upside)
! Momentum score 1.0/10 — below 4.5 minimum
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-07-20 (81d)

Verdict History

reverse chrono — latest first
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Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is RLI stock a buy right now?

Sell if holding. Analyst target reached at $51.30 — A.R:R is negative (-0.8) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: Florida, California, Texas, New York (56.0%). Chart setup: Death cross, below all MAs, RSI 25, MACD bearish. Prior stop was $49.11. Score 4.5/10, moderate confidence.

What is the RLI stock price target?

Take-profit target: $58.57 (+14.0% upside). Prior stop was $49.11. Stop-loss: $49.11.

What are the risks of investing in RLI?

Concentration risk — Geographic: Florida, California, Texas, New York (56.0%); Analyst target reached - limited upside remaining; Weak overall score: 4.5/10.

Is RLI overvalued or undervalued?

RLI Corp. trades at a P/E of 11.9 (forward 18.4). TrendMatrix value score: 6.4/10. Verdict: Sell.

What do analysts say about RLI?

12 analysts cover RLI with a consensus score of 3.4/5. Average price target: $58.

What does RLI Corp. do?RLI Corp. underwrites specialty property, casualty, and surety insurance through RLI Ins., Mt. Hawley, and CBIC...

RLI Corp. underwrites specialty property, casualty, and surety insurance through RLI Ins., Mt. Hawley, and CBIC subsidiaries in the U.S.; $1,614M net premiums earned in 2025 (casualty 60%, property 31%, surety 9%). Revenue comes from specialty admitted and excess/surplus lines markets; 56% of direct premiums earned are concentrated in four states (Florida 18%, California 18%, Texas 11%, New York 9%). Top-10 producers generated 49% of gross premiums written.

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