Brokerages Set Arch Capital Group Ltd. (NASDAQ:ACGL) Target Price at $111.27

Key Points

• Arch Capital Group Ltd. has received an average recommendation of "Moderate Buy" from analysts, with 9 buy ratings and 7 hold ratings from a total of 16 research firms.
• The company's current 12-month target price averages at $111.27, with notable target prices including $110 from Morgan Stanley and $118 from UBS Group.
• Arch Capital Group recently reported earnings of $2.58 per share, exceeding analysts' estimates and showcasing a revenue of $4.35 billion for the quarter.

Shares of Arch Capital Group Ltd. (NASDAQ:ACGL - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the sixteen ratings firms that are covering the stock, MarketBeat Ratings reports. Seven research analysts have rated the stock with a hold recommendation and nine have assigned a buy recommendation to the company. The average 1-year price target among brokerages that have issued ratings on the stock in the last year is $111.2667.

Several equities analysts recently weighed in on ACGL shares. Citigroup started coverage on shares of Arch Capital Group in a report on Wednesday, August 13th. They issued a "buy" rating and a $113.00 price target on the stock. Morgan Stanley set a $110.00 price objective on shares of Arch Capital Group and gave the stock an "overweight" rating in a research note on Monday, May 19th. UBS Group reaffirmed a "buy" rating and set a $118.00 price objective (down previously from $124.00) on shares of Arch Capital Group in a research note on Monday, August 4th. Keefe, Bruyette & Woods raised their price objective on shares of Arch Capital Group from $102.00 to $103.00 and gave the stock a "market perform" rating in a research note on Thursday, August 14th. Finally, Wells Fargo & Company dropped their price objective on shares of Arch Capital Group from $110.00 to $107.00 and set an "overweight" rating on the stock in a research note on Thursday, July 31st.

Insider Activity

In other news, insider Maamoun Rajeh sold 10,000 shares of the stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $94.15, for a total transaction of $941,500.00. Following the transaction, the insider owned 433,589 shares in the company, valued at $40,822,404.35. This trade represents a 2.25% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 4.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Capital A Wealth Management LLC purchased a new position in Arch Capital Group in the 4th quarter valued at $25,000. Bartlett & CO. Wealth Management LLC purchased a new stake in shares of Arch Capital Group in the first quarter valued at about $27,000. Meeder Asset Management Inc. grew its holdings in shares of Arch Capital Group by 116.3% in the first quarter. Meeder Asset Management Inc. now owns 279 shares of the insurance provider's stock valued at $27,000 after purchasing an additional 150 shares during the period. Wayfinding Financial LLC acquired a new stake in Arch Capital Group during the first quarter worth about $31,000. Finally, Zions Bancorporation National Association UT acquired a new stake in Arch Capital Group during the first quarter worth about $37,000. Hedge funds and other institutional investors own 89.07% of the company's stock.

Arch Capital Group Stock Up 1.4%

Shares of ACGL traded up $1.25 during mid-day trading on Friday, hitting $92.57. 966,326 shares of the company traded hands, compared to its average volume of 1,917,244. Arch Capital Group has a 1-year low of $82.49 and a 1-year high of $116.47. The business has a 50 day moving average of $89.57 and a 200 day moving average of $91.24. The company has a quick ratio of 0.56, a current ratio of 0.56 and a debt-to-equity ratio of 0.16. The company has a market capitalization of $34.55 billion, a PE ratio of 9.55, a price-to-earnings-growth ratio of 5.60 and a beta of 0.51.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last issued its quarterly earnings results on Tuesday, July 29th. The insurance provider reported $2.58 earnings per share for the quarter, topping the consensus estimate of $2.30 by $0.28. Arch Capital Group had a net margin of 19.49% and a return on equity of 15.33%. The company had revenue of $4.35 billion for the quarter, compared to the consensus estimate of $4.29 billion. During the same quarter in the prior year, the company earned $2.57 EPS. Equities research analysts anticipate that Arch Capital Group will post 8.42 EPS for the current year.

About Arch Capital Group

Arch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products worldwide. The company's Insurance segment offers primary and excess casualty coverages; loss sensitive primary casualty insurance programs; directors' and officers' liability, errors and omissions liability, employment practices and fiduciary liability, crime, professional indemnity, and other financial related coverages; medical professional and general liability insurance coverages; and workers' compensation and umbrella liability, as well as commercial automobile and inland marine products.