UBS Group Reiterates Buy Rating for Arch Capital Group (NASDAQ:ACGL)

Key Points

• UBS Group has reduced its price target for Arch Capital Group from $124.00 to $118.00, maintaining a "buy" rating, which reflects a potential upside of 33.68% from the current stock price.
• Other analysts have mixed ratings, with a consensus price target of $113.00, while eight analysts have rated the stock as a hold and eight as a buy.
• Arch Capital Group reported an earnings per share of $2.58, exceeding expectations, with a revenue of $4.35 billion for the quarter.

UBS Group reissued their buy rating on shares of Arch Capital Group (NASDAQ:ACGL - Free Report) in a research report report published on Monday, MarketBeat reports. They currently have a $118.00 price objective on the insurance provider's stock, down from their previous price objective of $124.00.

A number of other research analysts have also weighed in on the company. Morgan Stanley set a $110.00 target price on Arch Capital Group and gave the company an "overweight" rating in a report on Monday, May 19th. JMP Securities reaffirmed a "market outperform" rating and set a $125.00 target price on shares of Arch Capital Group in a report on Wednesday, April 30th. Jefferies Financial Group cut Arch Capital Group from a "buy" rating to a "hold" rating and reduced their target price for the stock from $106.00 to $100.00 in a research report on Tuesday, June 10th. Keefe, Bruyette & Woods reiterated a "market perform" rating and set a $101.00 price target (down previously from $113.00) on shares of Arch Capital Group in a research report on Wednesday, July 9th. Finally, Barclays decreased their price objective on shares of Arch Capital Group from $100.00 to $93.00 and set an "equal weight" rating on the stock in a research report on Friday, April 11th. Eight research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $113.07.

Arch Capital Group Stock Up 1.2%

ACGL stock opened at $89.76 on Monday. The company has a market cap of $33.64 billion, a P/E ratio of 9.26, a price-to-earnings-growth ratio of 6.61 and a beta of 0.49. Arch Capital Group has a fifty-two week low of $82.49 and a fifty-two week high of $116.47. The stock's 50 day simple moving average is $90.07 and its 200 day simple moving average is $91.49. 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 (NASDAQ:ACGL - Get Free Report) last issued its quarterly earnings data on Tuesday, July 29th. The insurance provider reported $2.58 earnings per share for the quarter, beating the consensus estimate of $2.30 by $0.28. The business had revenue of $4.35 billion for the quarter, compared to analysts' expectations of $4.29 billion. Arch Capital Group had a return on equity of 15.33% and a net margin of 19.49%. During the same period last year, the business earned $2.57 EPS. On average, research analysts expect that Arch Capital Group will post 8.42 earnings per share for the current fiscal year.

Insider Activity at Arch Capital Group

In related news, insider Louis T. Petrillo sold 16,650 shares of Arch Capital Group stock in a transaction dated Friday, May 9th. The stock was sold at an average price of $94.53, for a total value of $1,573,924.50. Following the completion of the sale, the insider directly owned 140,023 shares in the company, valued at approximately $13,236,374.19. This trade represents a 10.63% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Francois Morin sold 12,630 shares of the company's stock in a transaction dated Friday, May 16th. The shares were sold at an average price of $94.58, for a total transaction of $1,194,545.40. Following the transaction, the chief financial officer owned 274,681 shares in the company, valued at $25,979,328.98. This represents a 4.40% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 104,340 shares of company stock valued at $9,824,861. 4.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Arch Capital Group

A number of large investors have recently added to or reduced their stakes in the stock. Prospera Financial Services Inc grew its position in Arch Capital Group by 54.0% during the second quarter. Prospera Financial Services Inc now owns 5,043 shares of the insurance provider's stock valued at $459,000 after buying an additional 1,768 shares during the period. AGF Management Ltd. increased its position in Arch Capital Group by 7.9% in the second quarter. AGF Management Ltd. now owns 32,290 shares of the insurance provider's stock worth $2,940,000 after buying an additional 2,355 shares in the last quarter. Bensler LLC grew its stake in shares of Arch Capital Group by 6.2% during the 2nd quarter. Bensler LLC now owns 24,126 shares of the insurance provider's stock valued at $2,197,000 after acquiring an additional 1,414 shares during the period. Penserra Capital Management LLC raised its position in shares of Arch Capital Group by 12.1% during the 2nd quarter. Penserra Capital Management LLC now owns 1,949 shares of the insurance provider's stock valued at $177,000 after purchasing an additional 211 shares during the period. Finally, Kinsale Capital Group Inc. lifted its position in shares of Arch Capital Group by 9.0% in the second quarter. Kinsale Capital Group Inc. now owns 85,060 shares of the insurance provider's stock valued at $7,745,000 after acquiring an additional 6,992 shares in the last quarter. Institutional investors own 89.07% of the company's stock.

Arch Capital Group Company Profile

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.