Is Reliance Global Group a Good Insurance Broker Stock to Buy?

: RELI | Reliance Global Group Inc. News, Ratings, and Charts

RELI – The shares of insurance broker Reliance Global (RELI) have soared in price thanks to the company’s expanding product offerings and market reach. However, since RELI has yet to turn a profit, is it wise to bet on the stock now? Read on to learn our view.

Advanced insurance agency Reliance Global Group, Inc. (RELI) in Lakewood, N.J., is making progress by rapidly adding new states to the nationwide rollout of its 5MinuteInsure.com platform. 

Simultaneously, RELI is exploring opportunistic acquisitions of cash-flow-positive agencies at attractive multiples to expand its national footprint further and enhance its operating efficiency. The stock has a consensus rating of ‘Buy.’

In terms of the trailing-12-month asset turnover ratio, RELI’s 0.41% is 93.8% higher than the 0.21% industry average. In addition, the stock has gained 249.7% in price over the past month and 153.9% over the past three months to close yesterday’s trading session at $6.75. And its revenues are expected to increase with the reopening of the economy. So, RELI’s near-term prospects look bright.

So, here is what I think could influence RELI’s performance in the coming months:

Improving Financials

RELI’s revenues increased 54% year-over-year to $2.58 million in the third quarter, ended Sept. 30, 2021. The company’s EBITDA loss declined 88% year-over-year to $87,000, while its net loss came in at $595,233, representing a 51.7% year-over-year decrease. Also, its loss per share was  $0.05, down 83.3% year-over-year.

Growth Initiatives

On Dec.22, 2021, RELI announced a definitive agreement to acquire Medigap Health Insurance Company. Ezra Beyman, RELI’s CEO, said, “This planned acquisition would expand our capabilities within the Medicare supplement market, which we believe would be a perfect complement and highly synergistic with our existing portfolio companies. In addition to bolstering our revenue by more than 70%, we believe this transaction has the potential to be highly accretive.”

Selling Shares to Fund Growth Activities

On Dec.23, 2021, RELI priced a private placement of preferred stock, common stock, and warrants for gross proceeds of $20 million. The company intends to use the net proceeds from the private placement to fund its planned acquisition of Medigap, to support expanded marketing activities around 5MinuteInsure.com, and for general working capital and administrative purposes.

Bottom Line

RELI has been showing continued revenue growth and scalability of its business model. Also, we think it is well-positioned to benefit from the expected rise in interest rates. So, it could be wise to add the stock to one’s watch list.


RELI shares were trading at $5.88 per share on Friday afternoon, down $0.87 (-12.89%). Year-to-date, RELI has declined -8.70%, versus a -1.67% rise in the benchmark S&P 500 index during the same period.


About the Author: Nimesh Jaiswal


Nimesh Jaiswal's fervent interest in analyzing and interpreting financial data led him to a career as a financial analyst and journalist. The importance of financial statements in driving a stock’s price is the key approach that he follows while advising investors in his articles. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
RELIGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Updated 2024 Stock Market Outlook

The bull market continues to rage on with the S&P 500 (SPY) making new highs. That is the past...the question is what does the future hold? That is why 44 year investment veteran Steve Reitmeister provides this updated 2024 Stock Market Outlook to help you carve a path to outperformance the rest of the year. Read on below for the full story...

3 Energy Stocks Set to Soar Beyond Expectations

Given the geopolitical tensions, increasing global oil demand, and supply adjustments, the energy sector is poised for robust growth. Therefore, investors might consider investing in energy stocks TechnipFMC (FTI), Weatherford International (WFRD), and ChampionX (CHX), which are poised to exceed expectations. Keep reading…

Has Carnival (CCL) Stock Turned Into a Buy After Earnings Release?

Carnival Corporation (CCL) reported record revenue in its most recent quarter but still faces a negative bottom line. The collapse of Francis Scott Key Bridge brings more uncertainty to its financials. Given these events, what stance should one take with CCL stock? Read more to find out…

3 China Stocks Positioned for Long-Term Growth

Despite facing challenges, the Chinese economy has demonstrated resilience, as evidenced by recent robust industrial output and retail sales data. Given this outlook, it might be an opportune time to own three top-notch China stocks, JD.com, Inc. (JD), China Automotive Systems (CAAS), and Youdao, Inc. (DAO). Read on…

Investor Alert: “Buy the Rumor, Sell the News!”

Everyone knows that the Fed is going to cut rates at some point this year. That is the worst kept secret on the planet helping to explain how we keep making new highs for the for the S&P 500 (SPY). Unfortunately that creates an interesting predicament for stocks after rates are cut. Plus another hurdle in the 2024 Presidential election. Steve Reitmeister is here to share his insights on the market outlook along with a preview of his top 12 stocks to outperform. Read on for more...

Read More Stories

More Reliance Global Group Inc. (RELI) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All RELI News