Arch Capital Group (NASDAQ:ACGL) Price Target Cut to $101.00 by Analysts at Mizuho

Key Points

• Mizuho cut its price target on Arch Capital Group to $101.00 (from $102) and kept a neutral rating, implying roughly a 7.85% upside from the recent share price.
• Analyst views are mixed—eight Buys, eight Holds and one Sell—resulting in an average rating of Hold and an average price target of $106.54.
• Arch reported Q1 EPS of $2.50 with a 24.6% net margin and 17.6% ROE; however, insiders have sold shares recently even as large institutions (e.g., Norges Bank, First Trust) added sizable positions.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) had its target price cut by equities researchers at Mizuho from $102.00 to $101.00 in a research note issued on Tuesday,Benzinga reports. The firm presently has a "neutral" rating on the insurance provider's stock. Mizuho's price target indicates a potential upside of 7.85% from the company's current price.

Several other equities analysts also recently commented on ACGL. Citigroup upped their price objective on shares of Arch Capital Group from $120.00 to $122.50 and gave the company a "buy" rating in a report on Thursday, April 30th. The Goldman Sachs Group reiterated a "sell" rating and issued a $93.00 price objective (up from $84.00) on shares of Arch Capital Group in a report on Wednesday, January 7th. Evercore set a $100.00 price objective on shares of Arch Capital Group and gave the company an "in-line" rating in a report on Wednesday, January 7th. UBS Group reiterated a "buy" rating and issued a $114.00 price objective (up from $113.00) on shares of Arch Capital Group in a report on Tuesday, February 17th. Finally, Cantor Fitzgerald reiterated a "neutral" rating and issued a $100.00 price objective (up from $97.00) on shares of Arch Capital Group in a report on Tuesday, February 17th. Eight investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $106.54.

Arch Capital Group Stock Performance

NASDAQ ACGL opened at $93.65 on Tuesday. The company has a current ratio of 0.55, a quick ratio of 0.53 and a debt-to-equity ratio of 0.15. The firm's fifty day moving average price is $96.37 and its two-hundred day moving average price is $94.23. Arch Capital Group has a 1 year low of $82.44 and a 1 year high of $103.39. The firm has a market capitalization of $33.36 billion, a P/E ratio of 7.19, a price-to-earnings-growth ratio of 5.12 and a beta of 0.35.

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 (EPS) for the quarter. Arch Capital Group had a net margin of 24.64% and a return on equity of 17.61%. The firm had revenue of $4.52 billion for the quarter. As a group, research analysts anticipate that Arch Capital Group will post 9.35 EPS for the current year.

Insider Activity

In other Arch Capital Group news, insider David Gansberg sold 5,907 shares of the stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $96.37, for a total transaction of $569,257.59. Following the sale, the insider directly owned 336,559 shares in the company, valued at $32,434,190.83. This represents a 1.72% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Brian S. Posner sold 3,000 shares of the stock in a transaction dated Wednesday, March 11th. The stock was sold at an average price of $17.11, for a total transaction of $51,330.00. Following the sale, the director owned 2,000 shares in the company, valued at $34,220. The trade was a 60.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 78,267 shares of company stock valued at $7,291,637. Company insiders own 3.30% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Norges Bank acquired a new stake in Arch Capital Group during the 4th quarter worth approximately $463,208,000. Cooke & Bieler LP bought a new position in Arch Capital Group during the 3rd quarter worth approximately $210,856,000. First Trust Advisors LP raised its holdings in Arch Capital Group by 409.5% during the 3rd quarter. First Trust Advisors LP now owns 2,835,648 shares of the insurance provider's stock worth $257,278,000 after purchasing an additional 2,279,147 shares during the last quarter. AQR Capital Management LLC raised its holdings in Arch Capital Group by 184.1% during the 4th quarter. AQR Capital Management LLC now owns 2,670,628 shares of the insurance provider's stock worth $256,167,000 after purchasing an additional 1,730,487 shares during the last quarter. Finally, Fiduciary Management Inc. WI bought a new position in Arch Capital Group during the 4th quarter worth approximately $106,683,000. Institutional investors own 89.07% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.