Cantor Fitzgerald Issues Pessimistic Forecast for Arch Capital Group (NASDAQ:ACGL) Stock Price

Key Points

• Cantor Fitzgerald cut Arch Capital Group’s price target from $110 to $105 while maintaining a “neutral” rating, implying 10.74% potential upside from the previous close.
• Analyst sentiment remains mixed but leans toward caution: six analysts rate ACGL a “Buy,” seven rate it “Hold,” and one rates it “Sell,” resulting in a consensus “Hold” rating and $110.11 price target.
• Arch reported quarterly EPS of $2.56, exceeding the $2.47 estimate, while revenue of $4.67 billion also topped expectations. Shares opened at $94.82, and institutional investors own 89.07% of the company.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) had its target price cut by Cantor Fitzgerald from $110.00 to $105.00 in a research note issued to investors on Wednesday, Benzinga reports. The brokerage presently has a "neutral" rating on the insurance provider's stock. Cantor Fitzgerald's price target points to a potential upside of 10.74% from the company's previous close.

Other research analysts have also issued reports about the company. Keefe, Bruyette & Woods cut their target price on Arch Capital Group from $102.00 to $99.00 and set a "market perform" rating on the stock in a research report on Wednesday, July 8th. Weiss Ratings lowered Arch Capital Group from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday, September 24th. JPMorgan Chase & Co. raised their price objective on Arch Capital Group from $116.00 to $118.00 and gave the stock a "neutral" rating in a report on Tuesday, August 11th. UBS Group reaffirmed a "buy" rating and issued a $120.00 price objective (up from $114.00) on shares of Arch Capital Group in a research note on Wednesday, July 8th. Finally, Atlantic Securities set a $126.00 target price on Arch Capital Group in a report on Wednesday, July 15th. Six analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Arch Capital Group presently has an average rating of "Hold" and a consensus price target of $110.11.

Arch Capital Group Stock Performance

Shares of ACGL stock opened at $94.82 on Wednesday. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.57 and a current ratio of 0.57. The firm has a market capitalization of $32.36 billion, a price-to-earnings ratio of 7.41, a price-to-earnings-growth ratio of 2.89 and a beta of 0.28. Arch Capital Group has a one year low of $82.44 and a one year high of $107.08. The company has a 50 day moving average price of $97.68 and a 200 day moving average price of $96.51.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last announced its quarterly earnings results on Tuesday, July 28th. The insurance provider reported $2.56 earnings per share for the quarter, beating analysts' consensus estimates of $2.47 by $0.09. Arch Capital Group had a net margin of 24.40% and a return on equity of 17.06%. The company had revenue of $4.67 billion for the quarter, compared to analyst estimates of $4.36 billion. During the same quarter last year, the business earned $2.58 EPS. Sell-side analysts anticipate that Arch Capital Group will post 9.51 EPS for the current year.

Insider Transactions at Arch Capital Group

In other Arch Capital Group news, CFO Francois Morin sold 11,010 shares of the firm'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 transaction, the chief financial officer directly owned 184,826 shares of the company's stock, valued at $18,356,918.32. This trade represents a 5.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Corporate insiders own 3.30% of the company's stock.

Institutional Investors Weigh In On Arch Capital Group

A number of large investors have recently modified their holdings of the stock. Horizons Wealth Management purchased a new stake in shares of Arch Capital Group during the 3rd quarter valued at about $25,000. CX Institutional grew its position in Arch Capital Group by 6.9% in the third quarter. CX Institutional now owns 4,905 shares of the insurance provider's stock valued at $453,000 after acquiring an additional 317 shares in the last quarter. QRG Capital Management Inc. raised its stake in shares of Arch Capital Group by 11.0% during the second quarter. QRG Capital Management Inc. now owns 43,515 shares of the insurance provider's stock valued at $4,224,000 after purchasing an additional 4,296 shares during the period. Sequoia Financial Advisors LLC raised its stake in shares of Arch Capital Group by 29.7% during the second 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. Finally, National Pension Service lifted its position in shares of Arch Capital Group by 3.5% during the second quarter. National Pension Service now owns 719,128 shares of the insurance provider's stock worth $69,799,000 after purchasing an additional 24,546 shares in the last quarter. Institutional investors and hedge funds 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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