Arch Capital Group Ltd. (NASDAQ:ACGL) Short Interest Update

Key Points

• Short interest rose 13.5% to 6,460,519 shares as of April 15, representing about 1.9% of shares outstanding and a 3.7 days-to-cover ratio based on average daily volume.
• Insiders have been sellers: David Gansberg and Maamoun Rajeh recorded notable sales and insiders sold a total of 78,267 shares worth ~$7.29 million in the last 90 days, while insiders still own ~3.30% of the stock.
• Market view and valuation: Arch trades around $94.46 with a P/E of 7.25 and $33.65B market cap; analysts have a consensus rating of "Hold" and an average target of $108.04, implying potential upside to the current price.

Arch Capital Group Ltd. (NASDAQ:ACGL - Get Free Report) was the recipient of a large increase in short interest during the month of April. As of April 15th, there was short interest totaling 6,460,519 shares, an increase of 13.5% from the March 31st total of 5,693,649 shares. Based on an average daily volume of 1,761,327 shares, the days-to-cover ratio is currently 3.7 days. Currently, 1.9% of the shares of the company are short sold.

Insider Buying and Selling at Arch Capital Group

In related news, insider David Gansberg sold 5,907 shares of the stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $96.37, for a total transaction of $569,257.59. Following the completion of the sale, the insider owned 336,559 shares in the company, valued at $32,434,190.83. This represents a 1.72% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Maamoun Rajeh sold 47,430 shares of the firm's stock in a transaction on Wednesday, February 11th. The stock was sold at an average price of $96.12, for a total transaction of $4,558,971.60. Following the transaction, the insider directly owned 433,589 shares in the company, valued at $41,676,574.68. The trade was a 9.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 78,267 shares of company stock worth $7,291,637 in the last 90 days. Company insiders own 3.30% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in ACGL. Daymark Wealth Partners LLC increased its position in Arch Capital Group by 3.4% during the 4th quarter. Daymark Wealth Partners LLC now owns 3,211 shares of the insurance provider's stock worth $308,000 after purchasing an additional 106 shares in the last quarter. Keel Point LLC raised its stake in Arch Capital Group by 4.6% in the 3rd quarter. Keel Point LLC now owns 2,524 shares of the insurance provider's stock valued at $229,000 after purchasing an additional 112 shares during the last quarter. Legacy Advisors LLC raised its stake in Arch Capital Group by 1.2% in the 4th quarter. Legacy Advisors LLC now owns 9,551 shares of the insurance provider's stock valued at $916,000 after purchasing an additional 112 shares during the last quarter. V Square Quantitative Management LLC raised its stake in Arch Capital Group by 1.3% in the 1st quarter. V Square Quantitative Management LLC now owns 9,453 shares of the insurance provider's stock valued at $907,000 after purchasing an additional 123 shares during the last quarter. Finally, Compound Planning Inc. lifted its holdings in Arch Capital Group by 5.0% in the 3rd quarter. Compound Planning Inc. now owns 2,644 shares of the insurance provider's stock valued at $240,000 after purchasing an additional 127 shares in the last quarter. 89.07% of the stock is owned by hedge funds and other institutional investors.

Arch Capital Group Trading Up 1.9%

NASDAQ:ACGL opened at $94.46 on Friday. The stock has a market capitalization of $33.65 billion, a price-to-earnings ratio of 7.25, a PEG ratio of 4.62 and a beta of 0.41. Arch Capital Group has a 1 year low of $82.44 and a 1 year high of $103.39. The stock has a fifty day moving average price of $96.37 and a two-hundred day moving average price of $94.21. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.53 and a current ratio of 0.55.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last posted its quarterly earnings results on Tuesday, March 31st. The insurance provider reported $2.50 earnings per share for the quarter. The business had revenue of $4.52 billion for the quarter. Arch Capital Group had a net margin of 24.64% and a return on equity of 17.61%. As a group, sell-side analysts anticipate that Arch Capital Group will post 9.33 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several analysts have commented on the company. Wells Fargo & Company upped their price objective on Arch Capital Group from $109.00 to $110.00 and gave the company an "overweight" rating in a research note on Thursday. Barclays raised their target price on shares of Arch Capital Group from $104.00 to $106.00 and gave the stock an "equal weight" rating in a research note on Wednesday, April 8th. JPMorgan Chase & Co. dropped their price target on shares of Arch Capital Group from $117.00 to $110.00 and set a "neutral" rating on the stock in a research note on Monday, April 20th. The Goldman Sachs Group reissued a "sell" rating and set a $93.00 price target (up from $84.00) on shares of Arch Capital Group in a report on Wednesday, January 7th. Finally, Citigroup increased their price target on shares of Arch Capital Group from $120.00 to $122.50 and gave the stock a "buy" rating in a report on Thursday. Eight 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. According to data from MarketBeat.com, Arch Capital Group presently has a consensus rating of "Hold" and an average target price of $108.04.

About Arch Capital Group

Arch Capital Group Ltd. NASDAQ: ACGL is a Bermuda-based insurance and reinsurance holding company that underwrites a broad range of property and casualty, mortgage, and specialty risk products. The company operates through a group of underwriting subsidiaries and platforms to provide insurance, reinsurance and related risk solutions tailored to commercial, institutional and individual clients.

Arch's product mix includes treaty and facultative reinsurance, primary casualty and property insurance, mortgage insurance and other specialty lines.

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