Arch Capital Group (NASDAQ:ACGL) Stock Price Target Lowered at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods lowered Arch Capital Group’s price target from $99 to $95 while maintaining a “market perform” rating, implying roughly 0.6% downside from the stock’s $95.57 opening price.
• Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $109.46; targets range from $95 to $120.
• Arch Capital reported quarterly EPS of $2.56, exceeding estimates of $2.47, while revenue of $4.67 billion also surpassed expectations. Institutional investors own approximately 89.07% of the company’s shares.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) had its target price reduced by analysts at Keefe, Bruyette & Woods from $99.00 to $95.00 in a research note issued to investors on Monday, Benzinga reports. The firm currently has a "market perform" rating on the insurance provider's stock. Keefe, Bruyette & Woods' price objective would suggest a potential downside of 0.60% from the company's current price.

A number of other research firms have also issued reports on ACGL. Wells Fargo & Company reaffirmed an "overweight" rating on shares of Arch Capital Group in a report on Monday. Mizuho set a $100.00 target price on shares of Arch Capital Group and gave the company a "neutral" rating in a research report on Wednesday, September 16th. Citigroup reissued a "market outperform" rating on shares of Arch Capital Group in a research note on Wednesday, July 29th. UBS Group restated a "buy" rating and set a $120.00 price target (up from $114.00) on shares of Arch Capital Group in a research report on Wednesday, July 8th. Finally, Cantor Fitzgerald lowered their price target on shares of Arch Capital Group from $110.00 to $105.00 and set a "neutral" rating on the stock in a research report on Wednesday, October 7th. Seven analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $109.46.

Arch Capital Group Stock Performance

Shares of NASDAQ:ACGL opened at $95.57 on Monday. 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 1 year low of $82.44 and a 1 year high of $107.08. The firm has a market capitalization of $32.61 billion, a PE ratio of 7.47, a P/E/G ratio of 2.88 and a beta of 0.28. The business's 50 day moving average price is $97.27 and its 200-day moving average price is $96.56.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last posted its quarterly earnings data on Tuesday, July 28th. The insurance provider reported $2.56 EPS for the quarter, beating the consensus estimate of $2.47 by $0.09. The firm had revenue of $4.67 billion during the quarter, compared to the consensus estimate of $4.36 billion. Arch Capital Group had a return on equity of 17.06% and a net margin of 24.40%. During the same period in the prior year, the company earned $2.58 EPS. As a group, equities research analysts expect that Arch Capital Group will post 9.67 earnings per share for the current fiscal year.

Insiders Place Their Bets

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

Institutional Trading of Arch Capital Group

Hedge funds and other institutional investors have recently made changes to their positions in the company. Madison Asset Management LLC purchased a new stake in shares of Arch Capital Group in the 2nd quarter valued at $368,808,000. First Trust Advisors LP lifted its position in shares of Arch Capital Group by 319.5% during the 1st quarter. First Trust Advisors LP now owns 2,626,148 shares of the insurance provider's stock worth $252,084,000 after purchasing an additional 2,000,162 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in shares of Arch Capital Group by 572.8% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,268,601 shares of the insurance provider's stock valued at $121,684,000 after acquiring an additional 1,080,049 shares during the last quarter. Hsbc Holdings PLC increased its stake in Arch Capital Group by 230.0% in the first quarter. Hsbc Holdings PLC now owns 1,286,178 shares of the insurance provider's stock valued at $123,354,000 after purchasing an additional 896,480 shares during the last quarter. Finally, Davis Asset Management L.P. acquired a new stake in Arch Capital Group during the 2nd quarter worth $63,089,000. 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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