Arch Capital Group (NASDAQ:ACGL) Stock Gets Price Target Boost from Citigroup

Key Points

• Citigroup raised Arch Capital Group’s price target to $125 from $122.50 and maintained a “buy” rating, implying roughly 20% upside from the reported share price.
• Analyst sentiment remains mixed: six analysts rate the stock a Buy, seven a Hold, and one a Sell, resulting in a consensus “Hold” rating and an average price target of $108.79.
• Arch Capital reported quarterly EPS of $2.67, beating estimates of $2.31, while revenue reached $4.66 billion versus expectations of $4.06 billion.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) had its price objective hoisted by investment analysts at Citigroup from $122.50 to $125.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The firm presently has a "buy" rating on the insurance provider's stock. Citigroup's price objective indicates a potential upside of 20.26% from the company's current price.

Several other equities analysts also recently commented on the stock. Mizuho set a $100.00 price objective on shares of Arch Capital Group and gave the company a "neutral" rating in a research note on Wednesday, September 16th. Cantor Fitzgerald lowered their price target on shares of Arch Capital Group from $110.00 to $105.00 and set a "neutral" rating for the company in a report on Wednesday, October 7th. Morgan Stanley set a $103.00 price target on Arch Capital Group and gave the company an "equal weight" rating in a research note on Thursday. UBS Group reissued a "buy" rating and set a $120.00 price objective (up from $114.00) on shares of Arch Capital Group in a report on Wednesday, July 8th. Finally, Royal Bank Of Canada restated an "outperform" rating and set a $120.00 price objective (up from $115.00) on shares of Arch Capital Group in a research report on Thursday, July 30th. Six research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $108.79.

Arch Capital Group Price Performance

NASDAQ:ACGL traded up $1.44 during trading hours on Thursday, hitting $103.94. The company's stock had a trading volume of 1,931,025 shares, compared to its average volume of 2,349,998. The stock has a fifty day simple moving average of $97.69 and a 200-day simple moving average of $96.66. The company has a market capitalization of $35.47 billion, a P/E ratio of 8.13, a PEG ratio of 3.06 and a beta of 0.28. The company has a debt-to-equity ratio of 0.23, a current ratio of 0.57 and a quick ratio of 0.57. Arch Capital Group has a twelve month low of $84.69 and a twelve month high of $107.08.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last issued its earnings results on Tuesday, October 27th. The insurance provider reported $2.67 EPS for the quarter, topping the consensus estimate of $2.31 by $0.36. Arch Capital Group had a return on equity of 17.06% and a net margin of 24.40%. The firm had revenue of $4.66 billion during the quarter, compared to the consensus estimate of $4.06 billion. During the same quarter in the previous year, the firm earned $2.77 earnings per share. On average, analysts anticipate that Arch Capital Group will post 9.77 EPS for the current fiscal year.

Insider Transactions at Arch Capital Group

In other Arch Capital Group news, CFO Francois Morin sold 11,010 shares of the company's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $99.32, for a total value of $1,093,513.20. Following the completion of the transaction, the chief financial officer directly owned 184,826 shares in the company, valued at approximately $18,356,918.32. This represents a 5.62% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 3.30% of the company's stock.

Hedge Funds Weigh In On Arch Capital Group

A number of hedge funds have recently modified their holdings of the business. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of Arch Capital Group during the third quarter valued at about $9,569,000. Profund Advisors LLC increased its position in shares of Arch Capital Group by 8.5% during the third quarter. Profund Advisors LLC now owns 3,163 shares of the insurance provider's stock worth $292,000 after acquiring an additional 247 shares in the last quarter. Vise Technologies Inc. raised its holdings in shares of Arch Capital Group by 8.1% in the 3rd quarter. Vise Technologies Inc. now owns 25,727 shares of the insurance provider's stock worth $2,376,000 after acquiring an additional 1,936 shares during the last quarter. Cidel Asset Management Inc. raised its holdings in shares of Arch Capital Group by 10.5% in the 3rd quarter. Cidel Asset Management Inc. now owns 2,355 shares of the insurance provider's stock worth $218,000 after acquiring an additional 224 shares during the last quarter. Finally, MGO One Seven LLC raised its holdings in shares of Arch Capital Group by 0.8% in the 3rd quarter. MGO One Seven LLC now owns 22,536 shares of the insurance provider's stock worth $2,081,000 after acquiring an additional 169 shares during the last quarter. Institutional investors and hedge funds own 89.07% of the company's stock.

Arch Capital Group Company Profile

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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