Bowhead Specialty (NYSE:BOW) Hits New 12-Month Low - Should You Sell?

Key Points

• Bowhead Specialty Holdings Inc. hit a new 52-week low, trading at $26.06 with a significant drop of 6.9% from the previous close.
• Despite the recent stock decline, five analysts rated the stock as a Buy and three as Hold, indicating a consensus rating of "Moderate Buy" with an average target price of $38.33.
• Insider trading activity included Director Matthew Botein selling 2,000,000 shares at an average price of $30.66, which reduced his stake by 18.23%.

Bowhead Specialty Holdings Inc. (NYSE:BOW - Get Free Report) hit a new 52-week low on Wednesday . The stock traded as low as $26.12 and last traded at $26.06, with a volume of 62928 shares traded. The stock had previously closed at $27.04.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on BOW shares. Morgan Stanley decreased their target price on Bowhead Specialty from $37.00 to $34.00 and set an "equal weight" rating for the company in a research report on Monday, August 18th. Deutsche Bank Aktiengesellschaft initiated coverage on Bowhead Specialty in a report on Friday, August 8th. They issued a "buy" rating for the company. Zacks Research raised Bowhead Specialty from a "strong sell" rating to a "hold" rating in a report on Friday, August 15th. Finally, Keefe, Bruyette & Woods reduced their price target on Bowhead Specialty from $45.00 to $42.00 and set an "outperform" rating for the company in a report on Tuesday, August 12th. Five analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, Bowhead Specialty presently has a consensus rating of "Moderate Buy" and an average price target of $38.33.

Bowhead Specialty Trading Down 6.9%

The business has a 50-day moving average price of $30.41 and a two-hundred day moving average price of $35.18. The firm has a market capitalization of $825.61 million, a price-to-earnings ratio of 17.13 and a beta of -0.70.

Bowhead Specialty (NYSE:BOW - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $0.37 earnings per share for the quarter, topping analysts' consensus estimates of $0.36 by $0.01. The business had revenue of $232.36 million for the quarter, compared to analysts' expectations of $134.66 million. Bowhead Specialty had a return on equity of 13.25% and a net margin of 10.05%. On average, equities research analysts predict that Bowhead Specialty Holdings Inc. will post 1.36 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Matthew Botein sold 2,000,000 shares of the firm's stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $30.66, for a total value of $61,320,000.00. Following the sale, the director directly owned 8,968,445 shares in the company, valued at $274,972,523.70. This trade represents a 18.23% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Gallatin Point Capital Llc sold 2,000,000 shares of the firm's stock in a transaction that occurred on Friday, August 8th. The shares were sold at an average price of $30.66, for a total value of $61,320,000.00. Following the completion of the sale, the director owned 8,968,445 shares in the company, valued at approximately $274,972,523.70. This represents a 18.23% decrease in their ownership of the stock. The disclosure for this sale can be found here.

Institutional Trading of Bowhead Specialty

Large investors have recently added to or reduced their stakes in the business. American Family Investments Inc. boosted its stake in Bowhead Specialty by 6.9% during the 2nd quarter. American Family Investments Inc. now owns 5,023,778 shares of the company's stock valued at $188,542,000 after purchasing an additional 323,017 shares in the last quarter. Bessemer Group Inc. bought a new position in Bowhead Specialty during the 1st quarter valued at $12,297,000. Millennium Management LLC boosted its stake in Bowhead Specialty by 75.8% during the 1st quarter. Millennium Management LLC now owns 250,277 shares of the company's stock valued at $10,174,000 after purchasing an additional 107,896 shares in the last quarter. Vanguard Group Inc. boosted its stake in Bowhead Specialty by 16.2% during the 1st quarter. Vanguard Group Inc. now owns 752,320 shares of the company's stock valued at $30,582,000 after purchasing an additional 105,138 shares in the last quarter. Finally, Cambridge Investment Research Advisors Inc. bought a new position in Bowhead Specialty during the 1st quarter valued at $3,891,000.

Bowhead Specialty Company Profile

Bowhead Specialty Holdings Inc provides specialty property and casualty insurance products in the United States. It underwrites casualty insurance solutions for risks in the construction, distribution, heavy manufacturing, real estate, and hospitality segments; professional liability insurance solutions for financial institutions, private and public directors and officers liability insurance, errors and omissions liability insurance, and cyber segments; and healthcare solutions for hospitals, senior care providers, managed care organizations, miscellaneous medical facilities, and healthcare management liability segments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.