We recently compiled a list of the 11 Most Expensive Stocks Insiders Are Buying Recently. In this article, we are going to take a look at where RLI Corp. (NYSE:RLI) stands against the other expensive stocks. We previously covered the 10 cheapest stocks insiders are buying recently.
The broader market returned around 21% over the past 12 months, and it is also doing well this year. Since the beginning of the year, it has moved 3.45%. As the January effect starts to cool off, we thought it could be useful to look into some of the stocks that insiders have recently not been shy to spend money on. Instead of the standard P/E ratio, today we decided to focus on the average price per share.
Why are expensive stocks worth considering? High-priced stocks are often perceived as more reliable long-term investments due to the belief that their higher price reflects a history of strong performance and lower volatility. While in investing there is not a single rule that guarantees results, taking more factors into account, such as price, insider trading activity, recent results, analyst coverage, and recent company moves and strategies, might help.
Both insider selling and buying can be driven by various motives that’s why it is important to consider these moves within the broader context of the company’s fundamentals, industry trends, and overall market conditions. Due diligence before any investment is of crucial importance. However, insider trading activity, combined with other relevant factors, can provide valuable insights into a company’s capabilities, helping investors make more informed decisions.
What are some of the most expensive stocks insiders have been buying over the last 30 days? To find out, we used Insider Monkey’s insider trading stock screener, focusing only on stocks where at least two insiders had purchased shares recently. From there, we ranked the 10 stocks with the highest average price per share.
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)
Average price per share: $72.14
Market capitalization: $6.88 billion
RLI Corp. (NYSE:RLI) is an insurance holding company specializing in property and casualty insurance and also one of 10 mid-cap stocks insiders are buying recently. The company’s casualty segment offers commercial and personal coverage products and general liability products. RLI Corp. (NYSE:RLI)’s offering also includes coverages for security guards and environmental liability for underground storage tanks, contractors and more.
In January, five insiders, among which are the company’s CEO, and COO purchased a total of around $949,974 worth of RLI shares at an average price of $72.14 per share. Out of the total amount, RLI’s CEO, W Craig Kliethermes, acquired 5,000 shares, increasing his holdings to 139,190 shares.
Since the beginning of the year, RLI Corp. (NYSE:RLI) shares declined 9.16%, now trading at $74.87 per share. Over the past 12 months, RLI stock gained 5.21%.
RLI Corp. (NYSE:RLI)’s average rating is “Hold” from nine research firms, according to StockAnalysis, and an average 12-month price target is $81.92.
On February 13, the company’s Board of Directors declared a first-quarter regular cash dividend of $0.15 per share, a 3.4% increase over the prior quarter. RLI has increased dividends in each of the last 50 years. For the fourth quarter of 2024, RLI disclosed net earnings of $40.9 million ($0.44 per share), compared to $114.6 million ($1.24 per share) for the same period of 2023.
Overall RLI ranks 4th on our list of the most expensive stocks insiders are buying recently. While we acknowledge the potential of RLI as an investment, 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.
