RLI Corp. stock trades under the ticker RLI & has shown recent bullishness that traders & investors should research further.
RLI stock closed at $115.81/share on 7/21/2022.
RLI Corp. RLI Stock’s Technical Performance Broken Down
RLI Stock Price: $115.81
10 Day Moving Average: $113.99
50 Day Moving Average: $115.35
200 Day Moving Average: $109.14
RSI: 54.27
MACD: -0.186
Yesterday, RLI stock completed a bullish MACD crossover, breaking out & settling above both its 10 & 50 day moving averages.
Their RSI is neutral & their recent trading volumes have been above average, signaling that there may be more momentum in the near-term.
They will need to test & break above the $117.56 & $119.48/share resistance levels as they continue to climb higher.
RLI Corp. RLI Stock As A Long-Term Investment
Long-term oriented investors will like RLI stock’s P/E (ttm) of 20.3, but will find their 4.42 P/B (mrq) to be a bit too high.
One possible area of concern is that they recently reported -7.8% Quarterly Revenue Growth Y-o-Y, with -34.4% Quarterly Earnings Growth Y-o-Y.
Their balance sheet will also require a more thorough review, with $72.2M of Total Cash (mrq) & $215.4M of Total Debt (mrq).
RLI stock pays a 0.88% dividend yield, which appears to be very stable in the long-run, with a 17.99% payout ratio.
83% of RLI stock’s outstanding share float is owned by institutional investors.
RLI Corp. RLI Stock As A Short-Term Trade Using Options
Short-term oriented traders can use options to profit from price movements in RLI stock, while hedging against broader market volatility.
I am looking at the contracts with the 8/19 expiration date.
The $115 & $110 call options are in-the-money, with the latter having more open interest than the former.
Currently none of their strike prices are in-the-money for puts, but the $115’s are only ~1% away.
Tying It All Together
RLI stock has many interesting attributes that traders & investors should find appealing.
Investors will like their dividend yield, but may find their balance sheet & recent growth metrics to be troubling & in need of further research.
Traders will like their current technical set up, but may be disappointed by how illiquid their options are.
All-in-all, it is worth taking a closer look at RLI stock to see how it fits into your portfolio strategy.
*** I DO NOT OWN SHARES OF RLI STOCK AT THE TIME OF PUBLISHING THIS ARTICLE ***