We recently published a list of 10 Mid-Cap Stocks Insiders Are Buying Recently. In this article, we are going to take a look at where RLI Corp. (NYSE:RLI) stands against other mid-cap stocks insiders are buying recently.
Why is it important to keep track of insider trading activity? Insiders, meaning people in high positions, such as executives and directors, have valuable insights into the company’s strategic moves, plans and initiatives. When, for example, a CEO invests their own capital in company stocks, it can indicate strong confidence in the company’s future results.
It is important to note that behind insider selling can be various other motives, that’s why insider trading activity should be assessed within the broader context of the company’s fundamentals, industry trends, and overall market conditions. Many insider purchases don’t necessarily mean the company will be successful. That’s why due diligence before any investment is of crucial importance. Investors should also take into account and carefully analyze underlying reasons for insider transactions. However, insider trading activity in combination with other relevant factors can offer precious insights into a company’s capabilities, helping investors make more informed investment decisions.
To come up with the 10 mid-cap stocks insiders are buying recently, we only considered stocks with a market capitalization of between $2 to $10 billion. We first used Insider Monkey’s insider trading stock screener and looked for stocks with at least two insiders buying over the last three months.
With each stock we note the number of recent insider purchases and the company’s current market capitalization. But why is it important to follow insider activity? Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A smiling couple walking hand-in-hand out of a modern insurance office, illustrating the company’s commitment to its customers.
RLI Corp. (NYSE:RLI)
Number of Insiders Recently Buying: 5
Market Capitalization: $6.772B
RLI Corp. (NYSE:RLI) is an insurance holding company specializing in property and casualty insurance and the fifth out of our 10 mid-cap stocks insiders are buying recently. In January, five insiders acquired approximately $950,000 worth of Maximus shares at a price of $72.14 per share. The stock is currently trading at $74.51, having lost 9.60% year-to-date. Over the last six months, RLI shares gained 2.32%. The highest drop over that period happened at the end of January.
Why did the stock drop in January? On January 15, 2025, RLI (NYSE:RLI) executed a two-for-one stock split of common stock, resulting in a lower price of its shares, which may be the reason insiders decided to seize the moment and buy more shares.
RLI (NYSE:RLI) has an average recommendation of “Moderate Buy” from seven research firms, according to MarketBeat, and an average 12-month price target of $91.20.
The company is known for its solid track record of dividend payments that has been paying for 49 years. On December 20, 2024, the company paid a special cash dividend of $2.00 per share and a regular quarterly dividend of $0.145 per share for a combined total of $196.8 million.
Investors who invested in RLI (NYSE:RLI) five years ago would have gained 54% on their investment.
Overall, RLI ranks 5th on our list of mid-cap stocks insiders are buying recently. While we acknowledge the potential of RLI, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RLI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
