Arch Capital Group (NASDAQ:ACGL) Stock Price Expected to Rise, UBS Group Analyst Says

Key Points

• UBS Group raised its price target for Arch Capital Group from $120 to $125 and maintained a “buy” rating, implying approximately 14.35% upside from the reported share price.
• Analyst sentiment remains mixed: seven analysts rate ACGL a Buy, eight a Hold and one a Sell, resulting in a consensus “Hold” rating and an average price target of $111.29.
• Arch Capital shares rose 2.8% to $109.31, while the company’s latest quarterly results exceeded expectations with EPS of $2.67 versus a $2.31 consensus estimate and revenue of $4.66 billion.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) had its target price raised by investment analysts at UBS Group from $120.00 to $125.00 in a note issued to investors on Monday, Benzinga reports. The brokerage presently has a "buy" rating on the insurance provider's stock. UBS Group's price target suggests a potential upside of 14.35% from the stock's current price.

Several other equities analysts have also issued reports on ACGL. Jefferies Financial Group lifted their price target on Arch Capital Group from $102.00 to $106.00 and gave the stock a "hold" rating in a research report on Thursday. Evercore dropped their price target on shares of Arch Capital Group from $105.00 to $103.00 in a research note on Wednesday, October 28th. BMO Capital Markets increased their price objective on shares of Arch Capital Group from $95.00 to $102.00 in a research report on Wednesday, August 5th. Morgan Stanley set a $103.00 price objective on shares of Arch Capital Group and gave the company an "equal weight" rating in a research note on Thursday. Finally, Weiss Ratings raised shares of Arch Capital Group from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, October 9th. Seven investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $111.29.

Arch Capital Group Stock Up 2.8%

Shares of ACGL traded up $2.95 during mid-day trading on Monday, reaching $109.31. The company had a trading volume of 2,143,377 shares, compared to its average volume of 2,353,795. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.57 and a current ratio of 0.56. The firm has a 50-day moving average price of $97.94 and a 200 day moving average price of $96.77. Arch Capital Group has a 52 week low of $84.69 and a 52 week high of $110.26. The company has a market capitalization of $37.30 billion, a price-to-earnings ratio of 8.94, a price-to-earnings-growth ratio of 3.54 and a beta of 0.22.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last posted its quarterly earnings data on Tuesday, October 27th. The insurance provider reported $2.67 earnings per share 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 return on equity of 16.62% and a net margin of 23.31%. During the same quarter last year, the company earned $2.77 EPS. On average, sell-side analysts forecast that Arch Capital Group will post 10.02 EPS for the current year.

Insiders Place Their Bets

In other Arch Capital Group news, CFO Francois Morin sold 11,010 shares of the business's 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 transaction, the chief financial officer owned 184,826 shares of the company's stock, valued at approximately $18,356,918.32. The trade was a 5.62% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 3.30% of the company's stock.

Institutional Trading of Arch Capital Group

Large investors have recently made changes to their positions in the stock. Kestra Private Wealth Services LLC lifted its holdings 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 buying an additional 472 shares during the period. Chicago Partners Investment Group LLC boosted its stake in shares of Arch Capital Group by 398.4% in the 3rd 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 grew its holdings in shares of Arch Capital Group by 23.4% in the third quarter. Covestor Ltd now owns 785 shares of the insurance provider's stock worth $73,000 after acquiring an additional 149 shares during the period. 3Chopt Investment Partners LLC grew its holdings in shares of Arch Capital Group by 0.7% in the third 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 period. Finally, Rakuten Investment Management Inc. bought a new stake in shares of Arch Capital Group in the third quarter worth $5,807,000. 89.07% of the stock is currently owned by institutional investors.

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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