Wells Fargo & Company Has Lowered Expectations for Arch Capital Group (NASDAQ:ACGL) Stock Price

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 - Free Report) had its price objective reduced by Wells Fargo & Company from $110.00 to $107.00 in a research report report published on Thursday,Benzinga reports. They currently have an overweight rating on the insurance provider's stock.

A number of other brokerages also recently issued reports on ACGL. Barclays cut their price objective on shares of Arch Capital Group from $100.00 to $93.00 and set an "equal weight" rating for the company in a research report on Friday, April 11th. Keefe, Bruyette & Woods reaffirmed a "market perform" rating and issued a $101.00 target price (down previously from $113.00) on shares of Arch Capital Group in a report on Wednesday, July 9th. Jefferies Financial Group downgraded shares of Arch Capital Group from a "buy" rating to a "hold" rating and dropped their target price for the stock from $106.00 to $100.00 in a report on Tuesday, June 10th. JMP Securities reaffirmed a "market outperform" rating and issued a $125.00 target price on shares of Arch Capital Group in a report on Wednesday, April 30th. Finally, UBS Group upped their target price on shares of Arch Capital Group to $124.00 and gave the stock a "buy" rating in a report on Thursday, June 12th. Eight equities research analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. According to data from MarketBeat, Arch Capital Group has a consensus rating of "Moderate Buy" and an average price target of $113.00.

Arch Capital Group Stock Performance

NASDAQ:ACGL traded up $0.94 during trading hours on Thursday, reaching $88.94. The company had a trading volume of 219,959 shares, compared to its average volume of 1,914,193. Arch Capital Group has a 52 week low of $82.49 and a 52 week high of $116.47. The firm's 50 day moving average price is $90.33 and its 200-day moving average price is $91.57. The company has a current ratio of 0.56, a quick ratio of 0.56 and a debt-to-equity ratio of 0.16. The firm has a market cap of $33.33 billion, a price-to-earnings ratio of 9.17, a PEG ratio of 6.68 and a beta of 0.49.

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 (EPS) for the quarter, beating analysts' consensus estimates of $2.30 by $0.28. Arch Capital Group had a net margin of 19.49% and a return on equity of 15.33%. The firm had revenue of $4.35 billion during the quarter, compared to the consensus estimate of $4.29 billion. During the same quarter in the previous year, the firm posted $2.57 EPS. On average, analysts forecast that Arch Capital Group will post 8.42 EPS for the current year.

Insider Buying and Selling

In related news, CFO Francois Morin sold 12,630 shares of the stock in a transaction dated Friday, May 16th. The shares were sold at an average price of $94.58, for a total value of $1,194,545.40. Following the sale, the chief financial officer directly owned 274,681 shares of the company's stock, valued at $25,979,328.98. This represents a 4.40% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider John M. Pasquesi sold 75,060 shares of the stock in a transaction dated Monday, May 12th. The stock was sold at an average price of $94.01, for a total transaction of $7,056,390.60. Following the completion of the sale, the insider directly owned 579,218 shares in the company, valued at $54,452,284.18. This trade represents a 11.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 104,340 shares of company stock valued at $9,824,861 in the last ninety days. 4.10% of the stock is owned by company insiders.

Institutional Trading of Arch Capital Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ACGL. Capital A Wealth Management LLC purchased a new stake in Arch Capital Group in the 4th quarter worth about $25,000. Bartlett & CO. Wealth Management LLC bought a new position in Arch Capital Group in the 1st quarter worth about $27,000. Meeder Asset Management Inc. grew its stake in Arch Capital Group by 116.3% in the 1st quarter. Meeder Asset Management Inc. now owns 279 shares of the insurance provider's stock worth $27,000 after acquiring an additional 150 shares in the last quarter. Wayfinding Financial LLC bought a new position in Arch Capital Group in the 1st quarter worth about $31,000. Finally, Zions Bancorporation National Association UT bought a new position in Arch Capital Group in the 1st quarter worth about $37,000. 89.07% of the stock is owned by hedge funds and other institutional investors.

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.