Arch Capital Group (NASDAQ:ACGL) Price Target Cut to $103.00 by Analysts at Evercore

Key Points

• Evercore lowered Arch Capital Group’s price target from $105 to $103, implying 3.16% downside from the prior close.
• Analyst sentiment is mixed, with seven Buy ratings, eight Holds and one Sell; the consensus rating is Hold with a $109.94 price target.
• Arch Capital reported quarterly EPS of $2.67, beating the $2.31 estimate, while revenue of $4.66 billion exceeded expectations of $4.06 billion.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) had its price objective lowered by equities researchers at Evercore from $105.00 to $103.00 in a research note issued to investors on Wednesday. Evercore's price objective points to a potential downside of 3.16% from the company's previous close.

Several other equities research analysts have also weighed in on ACGL. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $120.00 target price (up from $115.00) on shares of Arch Capital Group in a report on Thursday, July 30th. Mizuho set a $100.00 price target on shares of Arch Capital Group and gave the company a "neutral" rating in a report on Wednesday, September 16th. Atlantic Securities set a $126.00 price target on shares of Arch Capital Group in a research report on Wednesday, July 15th. UBS Group reaffirmed a "buy" rating and set a $120.00 price objective (up from $114.00) on shares of Arch Capital Group in a research note on Wednesday, July 8th. Finally, Keefe, Bruyette & Woods dropped their price objective on shares of Arch Capital Group from $99.00 to $95.00 and set a "market perform" rating for the company in a report on Monday, October 12th. Seven investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $109.94.

Arch Capital Group Price Performance

Shares of Arch Capital Group stock traded up $2.42 during midday trading on Wednesday, hitting $106.36. 2,479,819 shares of the company were exchanged, compared to its average volume of 2,354,857. The company has a debt-to-equity ratio of 0.21, a current ratio of 0.56 and a quick ratio of 0.57. The firm has a market cap of $36.29 billion, a P/E ratio of 8.70, a PEG ratio of 3.03 and a beta of 0.28. Arch Capital Group has a 52 week low of $84.69 and a 52 week high of $107.08. The firm has a 50 day simple moving average of $97.80 and a 200-day simple moving average of $96.70.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last released its quarterly earnings data on Tuesday, October 27th. The insurance provider reported $2.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.31 by $0.36. Arch Capital Group had a return on equity of 16.62% and a net margin of 23.31%. The firm had revenue of $4.66 billion during the quarter, compared to analyst estimates of $4.06 billion. During the same period in the prior year, the company posted $2.77 earnings per share. Research analysts forecast that Arch Capital Group will post 9.86 earnings per share for the current year.

Insider Activity at Arch Capital Group

In other news, CFO Francois Morin sold 11,010 shares of the stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $99.32, for a total value of $1,093,513.20. Following the completion of the sale, the chief financial officer owned 184,826 shares of the company's stock, valued at approximately $18,356,918.32. This represents a 5.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 3.30% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Assenagon Asset Management S.A. lifted its holdings in Arch Capital Group by 295.6% during the second quarter. Assenagon Asset Management S.A. now owns 50,073 shares of the insurance provider's stock worth $4,860,000 after acquiring an additional 37,416 shares during the period. Sequoia Financial Advisors LLC grew its stake in Arch Capital Group by 29.7% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 46,100 shares of the insurance provider's stock valued at $4,474,000 after purchasing an additional 10,562 shares during the period. Weiss Asset Management LP grew its stake in Arch Capital Group by 88.5% in the 1st quarter. Weiss Asset Management LP now owns 42,300 shares of the insurance provider's stock valued at $4,060,000 after purchasing an additional 19,860 shares during the period. Triad Investment Management bought a new position in Arch Capital Group in the 2nd quarter valued at $2,030,000. Finally, WINTON GROUP Ltd purchased a new stake in shares of Arch Capital Group during the 2nd quarter valued at $4,625,000. 89.07% of the stock is currently owned by hedge funds and other institutional investors.

About Arch Capital Group

Arch Capital Group Ltd. is a Bermuda-based insurance, reinsurance and mortgage insurance company whose shares trade on the Nasdaq under the symbol ACGL. The company was established in 1995 and has developed into a global provider of specialty risk-management products and services.

Through its insurance operations, Arch offers property, casualty, specialty, and accident and health coverage to businesses and other policyholders. Its reinsurance operations provide coverage and risk-transfer solutions to insurance companies across a range of property and casualty lines.

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