Arch Capital Group Downgraded to Hold by StockNews.com

On October 24, 2024, Arch Capital Group (NASDAQ:ACGL) received a rating downgrade from StockNews.com, moving from a ‘buy’ rating to a ‘hold’ rating in their recent report issued on Thursday.

Several other analysts have also recently provided insights on ACGL. Notably, Keefe, Bruyette & Woods raised their price target for Arch Capital Group from $120.00 to $121.00, maintaining an ‘outperform’ rating in a report released on August 7. Additionally, TD Cowen adjusted their price target from $116.00 to $138.00, designating the stock with a ‘buy’ rating in their analysis published on September 20. Jefferies Financial Group similarly increased their price objective for Arch Capital from $114.00 to $134.00, also assigning a ‘buy’ rating on October 9. Furthermore, JMP Securities raised their price target from $115.00 to $125.00, giving a ‘market outperform’ rating in a report on October 15. Barclays began coverage on Arch Capital Group on September 4, issuing an ‘equal weight’ rating with a corresponding target price of $120.00.

According to MarketBeat, five analysts have rated ACGL with a hold rating, while eleven have issued buy ratings, leading to an average rating of ‘Moderate Buy’ and a consensus price target of $119.53 for the stock.

Recent Performance

On Thursday, Arch Capital Group’s shares opened at $107.00. Over the past year, the stock reached a low of $72.85 and a high of $116.47. The company's quick ratio and current ratio stand at 0.60 each, accompanied by a debt-to-equity ratio of 0.16. Arch Capital Group boasts a market capitalization of $40.18 billion, a price-to-earnings ratio of 8.45, a PEG ratio of 2.01, and a beta of 0.59. The 50-day moving average of the stock is $110.46, while the 200-day moving average sits at $102.17.

In the latest quarterly earnings announcement on July 30, Arch Capital Group reported earnings per share of $2.57, exceeding analysts’ expectations of $2.21 by $0.36. The firm generated revenue of $3.78 billion for the quarter, slightly below the consensus estimate of $3.89 billion. With a return on equity of 21.42% and a net margin of 35.19%, the revenue represented a 10.3% increase compared to the same quarter from the previous year, where the earnings per share was reported at $1.92. Analysts are predicting that Arch Capital Group will achieve an EPS of 9.06 for the ongoing year.

Insider Transactions

In related news, Chief Financial Officer Francois Morin sold 11,460 shares of ACGL on August 16, valued at $1,174,191.60. Following this transaction, Morin’s direct ownership in the company is approximately 221,779 shares, worth around $22,723,476.34. This trade reflected a negligible change in his position. Details regarding this sale are available in filings with the SEC, which can be accessed for further information. Currently, corporate insiders hold 4.20% of the shares in Arch Capital Group.

Institutional Investor Activity

Recently, several large investors have adjusted their positions in Arch Capital Group. Among them, UMB Bank n.a. entered a new position during the second quarter, valued at about $30,000. Baldwin Brothers LLC in Massachusetts increased their stake in Arch Capital by 50.7%, now owning 309 shares valued at around $31,000 after purchasing an additional 104 shares in the latest quarter. Rothschild Investment LLC also secured a new stake in Arch Capital Group during the second quarter, valued at approximately $35,000. Additional investments were reported from LRI Investments LLC and Compagnie Lombard Odier SCmA in the earlier quarters. Institutional investors collectively own 89.07% of the company’s stock, reflecting strong backing from major shareholders.

Overview of Arch Capital Group

Arch Capital Group Ltd., along with its subsidiaries, specializes in providing insurance, reinsurance, and mortgage insurance products globally. The company’s insurance segment caters to various coverage needs, including primary and excess casualty, loss-sensitive programs, directors’ and officers’ liability, as well as other financial protection services.

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