Arch Capital Group (NASDAQ:ACGL) Price Target Lowered to $107.00 at Wells Fargo & Company

Key Points

• Wells Fargo & Company has lowered its price target for Arch Capital Group from $110.00 to $107.00, while maintaining an "overweight" rating, indicating a potential upside of 24.74% from the current stock price.
• Several analysts have varied opinions on the stock, with price targets ranging from $93.00 to $125.00, reflecting a consensus rating of "Moderate Buy" and an average price target of $113.40.
• Arch Capital Group reported quarterly earnings of $2.58 per share, surpassing estimates, with a significant year-over-year revenue increase despite recent declines in some analysts' price targets.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) had its price target lowered by research analysts at Wells Fargo & Company from $110.00 to $107.00 in a research note issued on Thursday,Benzinga reports. The brokerage currently has an "overweight" rating on the insurance provider's stock. Wells Fargo & Company's target price would suggest a potential upside of 24.74% from the company's current price.

Several other research analysts have also recently weighed in on ACGL. JMP Securities reissued a "market outperform" rating and set a $125.00 price target on shares of Arch Capital Group in a research report on Wednesday, April 30th. Barclays decreased their target price 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. Jefferies Financial Group cut shares of Arch Capital Group from a "buy" rating to a "hold" rating and decreased their target price for the company from $106.00 to $100.00 in a research report on Tuesday, June 10th. Keefe, Bruyette & Woods reissued 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, JPMorgan Chase & Co. increased their price target on shares of Arch Capital Group from $106.00 to $107.00 and gave the stock a "neutral" rating in a research report on Tuesday, April 8th. Eight investment analysts have rated the stock with a hold rating and eight have issued a buy rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $113.40.

Arch Capital Group Price Performance

Shares of Arch Capital Group stock traded up $0.17 during trading hours on Thursday, reaching $85.78. 1,281,507 shares of the company's stock were exchanged, compared to its average volume of 1,909,048. Arch Capital Group has a 1 year low of $82.49 and a 1 year high of $116.47. The company has a market capitalization of $32.15 billion, a P/E ratio of 8.85, a price-to-earnings-growth ratio of 5.99 and a beta of 0.51. The business has a fifty day moving average of $90.53 and a two-hundred day moving average of $91.68. The company has a quick ratio of 0.56, a current ratio of 0.56 and a debt-to-equity ratio of 0.16.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last announced its quarterly earnings results 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 firm had revenue of $4.35 billion for the quarter, compared to analysts' expectations of $4.29 billion. Arch Capital Group had a net margin of 19.49% and a return on equity of 15.61%. During the same quarter in the previous year, the company posted $2.57 EPS. As a group, research analysts predict that Arch Capital Group will post 8.42 earnings per share for the current fiscal year.

Insider Activity at Arch Capital Group

In other Arch Capital Group news, CEO Nicolas Papadopoulo sold 7,636 shares of the stock in a transaction that occurred on Friday, May 2nd. The shares were sold at an average price of $92.48, for a total value of $706,177.28. Following the transaction, the chief executive officer directly owned 795,718 shares in the company, valued at $73,588,000.64. This represents a 0.95% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider John M. Pasquesi sold 75,060 shares of the stock in a transaction that occurred on Monday, May 12th. The shares were sold at an average price of $94.01, for a total transaction of $7,056,390.60. Following the completion of the transaction, the insider owned 579,218 shares in the company, valued at $54,452,284.18. This represents a 11.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 111,976 shares of company stock valued at $10,531,038. Company insiders own 4.20% of the company's stock.

Hedge Funds Weigh In On Arch Capital Group

A number of hedge funds have recently modified their holdings of ACGL. Orion Portfolio Solutions LLC grew its position in shares of Arch Capital Group by 14.2% during the fourth quarter. Orion Portfolio Solutions LLC now owns 14,282 shares of the insurance provider's stock worth $1,319,000 after acquiring an additional 1,772 shares during the last quarter. CIBC Private Wealth Group LLC grew its position in shares of Arch Capital Group by 35.7% during the fourth quarter. CIBC Private Wealth Group LLC now owns 8,614 shares of the insurance provider's stock worth $798,000 after acquiring an additional 2,267 shares during the last quarter. Franklin Resources Inc. grew its position in Arch Capital Group by 1.4% in the 4th quarter. Franklin Resources Inc. now owns 616,723 shares of the insurance provider's stock valued at $56,954,000 after buying an additional 8,256 shares during the last quarter. HighPoint Advisor Group LLC grew its position in Arch Capital Group by 24.2% in the 4th quarter. HighPoint Advisor Group LLC now owns 3,056 shares of the insurance provider's stock valued at $274,000 after buying an additional 596 shares during the last quarter. Finally, Geode Capital Management LLC grew its position in Arch Capital Group by 1.7% in the 4th quarter. Geode Capital Management LLC now owns 11,010,756 shares of the insurance provider's stock valued at $1,014,648,000 after buying an additional 180,493 shares during the last quarter. 89.07% of the stock is currently owned by hedge funds and other institutional investors.

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.

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