Accelerant (NYSE:ARX) Trading Down 9.3% Following Insider Selling

Key Points

• Accelerant shares fell 9.3% to $13.35 after CEO Jeffrey Radke sold 95,223 shares and COO Matthew Sternberg sold 17,568 shares. Both transactions were conducted under pre-arranged Rule 10b5-1 plans, with Sternberg’s sale also covering tax obligations tied to vested equity awards.
• Analyst sentiment remains broadly positive: 10 analysts rate the stock a Buy, two rate it Hold, and one rates it Sell. The consensus rating is “Moderate Buy,” with an average price target of $18.60.
• Accelerant reported quarterly EPS of $0.17, topping estimates of $0.16, while revenue rose 53.5% year over year to $273.2 million. Despite positive operating metrics, the company posted a negative net margin of 135.47%.

Accelerant Holdings (NYSE:ARX - Get Free Report)'s share price dropped 9.3% during trading on Wednesday following insider selling activity. The stock traded as low as $13.40 and last traded at $13.35. Approximately 871,482 shares changed hands during mid-day trading, a decline of 41% from the average session volume of 1,466,417 shares. The stock had previously closed at $14.72.

Specifically, CEO Jeffrey L. Radke sold 95,223 shares of the stock in a transaction that occurred on Monday, July 27th. The stock was sold at an average price of $14.60, for a total transaction of $1,390,255.80. Following the completion of the sale, the chief executive officer directly owned 27,751,939 shares of the company's stock, valued at approximately $405,178,309.40. This trade represents a 0.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Matthew David Sternberg sold 17,568 shares of the business's stock in a transaction on Monday, July 27th. The stock was sold at an average price of $14.64, for a total value of $257,195.52. Following the completion of the transaction, the chief operating officer directly owned 596,482 shares in the company, valued at approximately $8,732,496.48. This represents a 2.86% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Analysts Set New Price Targets

ARX has been the subject of several research reports. Weiss Ratings lowered shares of Accelerant from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Monday, July 20th. Raymond James Financial raised their price target on shares of Accelerant from $16.00 to $19.00 and gave the stock an "outperform" rating in a research note on Monday, June 1st. Piper Sandler upped their price objective on Accelerant from $18.00 to $19.00 and gave the company an "overweight" rating in a research note on Tuesday, May 26th. Wells Fargo & Company lowered their target price on Accelerant from $17.00 to $16.00 and set an "overweight" rating on the stock in a research note on Thursday, July 9th. Finally, Morgan Stanley dropped their price objective on shares of Accelerant from $16.00 to $14.00 and set an "equal weight" rating on the stock in a report on Monday, July 6th. Ten analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $18.60.

Accelerant Trading Down 9.9%

The firm has a 50-day simple moving average of $14.08 and a 200-day simple moving average of $13.34. The company has a quick ratio of 1.61, a current ratio of 1.61 and a debt-to-equity ratio of 0.17. The stock has a market cap of $2.90 billion and a PE ratio of -1.92.

Accelerant (NYSE:ARX - Get Free Report) last announced its quarterly earnings results on Wednesday, May 13th. The technology company reported $0.17 earnings per share for the quarter, beating the consensus estimate of $0.16 by $0.01. The company had revenue of $273.20 million during the quarter. Accelerant had a positive return on equity of 49.99% and a negative net margin of 135.47%.The company's revenue was up 53.5% compared to the same quarter last year. Equities analysts forecast that Accelerant Holdings will post 0.73 earnings per share for the current year.

Institutional Investors Weigh In On Accelerant

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Teacher Retirement System of Texas boosted its position in shares of Accelerant by 0.6% in the fourth quarter. Teacher Retirement System of Texas now owns 176,043 shares of the technology company's stock valued at $2,878,000 after acquiring an additional 1,043 shares during the period. State of Wyoming bought a new stake in Accelerant during the 1st quarter worth approximately $28,000. Royal Bank of Canada lifted its stake in Accelerant by 50.3% in the 1st quarter. Royal Bank of Canada now owns 7,729 shares of the technology company's stock worth $103,000 after purchasing an additional 2,585 shares in the last quarter. PNC Financial Services Group Inc. boosted its holdings in Accelerant by 73.6% in the 1st quarter. PNC Financial Services Group Inc. now owns 6,157 shares of the technology company's stock valued at $82,000 after purchasing an additional 2,611 shares during the period. Finally, Quarry LP purchased a new position in shares of Accelerant during the 3rd quarter valued at $40,000.

Accelerant Company Profile

Aeroflex Holding Corp. (Aeroflex Holding) is a provider of radio frequency (RF) and microwave integrated circuits, components and systems used in the design, development and maintenance of wireless communication systems. The Company's solutions include microelectronic components and test and measurement equipment used by companies in the space, avionics and defense; commercial wireless communications, and medical and other markets. Its products include a range of RF, microwave and millimeter wave microelectronic components, integrated circuits (ICs), and analog and mixed-signal devices.

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