Arch Capital Group (NASDAQ:ACGL) Coverage Initiated by Analysts at Citigroup

Key Points

• Citigroup has initiated coverage on Arch Capital Group (NASDAQ:ACGL) with a "buy" rating and a price target of $113.00, indicating a potential upside of 28.73% from the stock's previous close.
• The stock currently has a consensus rating of "Moderate Buy" from analysts, with a consensus price target of $112.06.
• Arch Capital Group reported earnings of $2.58 per share for the last quarter, surpassing analysts' estimates of $2.30.

Equities research analysts at Citigroup began coverage on shares of Arch Capital Group (NASDAQ:ACGL - Get Free Report) in a report released on Wednesday, Marketbeat Ratings reports. The firm set a "buy" rating and a $113.00 price target on the insurance provider's stock. Citigroup's price objective indicates a potential upside of 28.73% from the stock's previous close.

Several other research analysts also recently weighed in on the company. UBS Group reiterated a "buy" rating and issued a $118.00 target price (down from $124.00) on shares of Arch Capital Group in a research note on Monday, August 4th. Jefferies Financial Group downgraded Arch Capital Group from a "buy" rating to a "hold" rating and lowered their target price for the company from $106.00 to $100.00 in a research note on Tuesday, June 10th. Morgan Stanley set a $110.00 target price on Arch Capital Group and gave the company an "overweight" rating in a research note on Monday, May 19th. Wells Fargo & Company decreased their price target on 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. Finally, Cantor Fitzgerald initiated coverage on Arch Capital Group in a research note on Tuesday. They issued a "neutral" rating and a $98.00 price target on the stock. Eight investment analysts have rated the stock with a hold rating and ten have given a buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $112.06.

Arch Capital Group Price Performance

Shares of ACGL opened at $87.78 on Wednesday. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.56 and a current ratio of 0.56. Arch Capital Group has a fifty-two week low of $82.49 and a fifty-two week high of $116.47. The firm has a 50-day simple moving average of $89.56 and a 200-day simple moving average of $91.33. The company has a market capitalization of $32.76 billion, a price-to-earnings ratio of 9.06, a price-to-earnings-growth ratio of 5.54 and a beta of 0.49.

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

Insider Transactions at Arch Capital Group

In other news, CFO Francois Morin sold 12,630 shares of the company's stock in a transaction dated Friday, May 16th. The stock was sold at an average price of $94.58, for a total value of $1,194,545.40. Following the completion of the sale, the chief financial officer owned 274,681 shares of the company's stock, valued at $25,979,328.98. This represents a 4.40% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 4.10% of the company's stock.

Institutional Trading of Arch Capital Group

Several institutional investors and hedge funds have recently bought and sold shares of ACGL. Nuveen LLC acquired a new stake in Arch Capital Group during the first quarter valued at approximately $399,651,000. First Trust Advisors LP raised its position in shares of Arch Capital Group by 663.3% during the 4th quarter. First Trust Advisors LP now owns 2,462,382 shares of the insurance provider's stock worth $227,401,000 after purchasing an additional 2,139,782 shares during the period. JPMorgan Chase & Co. raised its position in shares of Arch Capital Group by 30.5% during the 1st quarter. JPMorgan Chase & Co. now owns 7,470,591 shares of the insurance provider's stock worth $718,522,000 after purchasing an additional 1,743,945 shares during the period. Marshall Wace LLP acquired a new stake in shares of Arch Capital Group during the 4th quarter worth approximately $151,342,000. Finally, GAMMA Investing LLC raised its position in shares of Arch Capital Group by 10,817.9% during the 1st quarter. GAMMA Investing LLC now owns 806,181 shares of the insurance provider's stock worth $775,380,000 after purchasing an additional 798,797 shares during the period. Institutional investors and hedge funds own 89.07% of the company's stock.

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.

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