Arch Capital Group (NASDAQ:ACGL) Stock Gets Price Target Bump from Wells Fargo & Company

Key Points

• Wells Fargo raised Arch Capital Group’s price target from $107 to $119 and maintained an “overweight” rating, implying approximately 11.88% upside from the reported share price.
• Analyst sentiment is mixed overall: seven analysts rate the stock “Buy,” eight rate it “Hold,” and one rates it “Sell,” producing a consensus “Hold” rating and an average price target of $111.
• Arch Capital exceeded quarterly expectations, reporting $2.67 in EPS versus the $2.31 estimate and $4.66 billion in revenue versus the $4.06 billion forecast.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) had its price target increased by research analysts at Wells Fargo & Company from $107.00 to $119.00 in a research note issued to investors on Monday, Benzinga reports. The firm currently has an "overweight" rating on the insurance provider's stock. Wells Fargo & Company's target price would suggest a potential upside of 11.88% from the company's current price.

A number of other analysts have also commented on the company. BMO Capital Markets raised their price target on Arch Capital Group from $95.00 to $102.00 in a research note on Wednesday, August 5th. Mizuho set a $100.00 price objective on shares of Arch Capital Group and gave the company a "neutral" rating in a research report on Wednesday, September 16th. Weiss Ratings raised Arch Capital Group from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, October 9th. Keefe, Bruyette & Woods lowered their price objective on Arch Capital Group from $99.00 to $95.00 and set a "market perform" rating for the company in a research report on Monday, October 12th. Finally, UBS Group restated a "buy" rating and set a $120.00 target price (up from $114.00) on shares of Arch Capital Group in a report on Wednesday, July 8th. Seven equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $111.00.

Arch Capital Group Price Performance

Shares of Arch Capital Group stock opened at $106.36 on Monday. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.57 and a current ratio of 0.56. Arch Capital Group has a 52-week low of $84.69 and a 52-week high of $107.08. The company's 50 day moving average price is $97.94 and its 200-day moving average price is $96.77. The stock has a market capitalization of $36.29 billion, a price-to-earnings ratio of 8.70, a P/E/G ratio of 3.54 and a beta of 0.22.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last posted its quarterly earnings results on Tuesday, October 27th. The insurance provider reported $2.67 EPS for the quarter, beating analysts' consensus estimates of $2.31 by $0.36. The company had revenue of $4.66 billion during the quarter, compared to analyst estimates of $4.06 billion. Arch Capital Group had a net margin of 23.31% and a return on equity of 16.62%. During the same period in the prior year, the business posted $2.77 EPS. Equities research analysts forecast that Arch Capital Group will post 10.02 EPS for the current year.

Insider Buying and Selling at Arch Capital Group

In other news, CFO Francois Morin sold 11,010 shares of the firm's stock in a transaction on 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 transaction, the chief financial officer directly owned 184,826 shares in the company, valued at $18,356,918.32. This trade represents a 5.62% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. 3.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of ACGL. Kestra Private Wealth Services LLC increased its position in shares of Arch Capital Group by 6.3% during the 3rd quarter. Kestra Private Wealth Services LLC now owns 8,001 shares of the insurance provider's stock valued at $739,000 after purchasing an additional 472 shares during the last quarter. Chicago Partners Investment Group LLC boosted its holdings in shares of Arch Capital Group by 398.4% in the third quarter. Chicago Partners Investment Group LLC now owns 14,340 shares of the insurance provider's stock worth $1,458,000 after buying an additional 11,463 shares during the last quarter. Covestor Ltd boosted its stake in shares of Arch Capital Group by 23.4% during the 3rd quarter. Covestor Ltd now owns 785 shares of the insurance provider's stock worth $73,000 after acquiring an additional 149 shares during the last quarter. 3Chopt Investment Partners LLC boosted its stake in shares of Arch Capital Group by 0.7% during the 3rd quarter. 3Chopt Investment Partners LLC now owns 24,774 shares of the insurance provider's stock worth $2,288,000 after acquiring an additional 166 shares during the last quarter. Finally, Rakuten Investment Management Inc. purchased a new position in shares of Arch Capital Group during the 3rd quarter worth $5,807,000. Institutional investors own 89.07% of the company's stock.

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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