Bowhead Specialty (NYSE:BOW) Sees Strong Trading Volume - Still a Buy?

Key Points

• Bowhead Specialty Holdings Inc. (NYSE:BOW) experienced a significant trading volume increase of 303%, with approximately 920,873 shares traded, indicating heightened investor interest.
• Multiple analysts have recently raised their price targets for Bowhead Specialty, with a consensus rating of "Moderate Buy" and an average target price of $39.67.
• The company reported earnings of $0.37 per share for the last quarter, surpassing estimates, alongside a revenue of $232.36 million that exceeded analyst expectations.

Bowhead Specialty Holdings Inc. (NYSE:BOW - Get Free Report) shares saw unusually-strong trading volume on Thursday . Approximately 920,873 shares were traded during trading, an increase of 303% from the previous session's volume of 228,255 shares.The stock last traded at $31.20 and had previously closed at $32.10.

Analyst Ratings Changes

BOW has been the topic of several research reports. Keefe, Bruyette & Woods lifted their price target on shares of Bowhead Specialty from $43.00 to $45.00 and gave the company an "outperform" rating in a report on Friday, May 9th. Morgan Stanley boosted their target price on shares of Bowhead Specialty from $36.00 to $39.00 and gave the company an "equal weight" rating in a research report on Monday, May 19th. Piper Sandler began coverage on shares of Bowhead Specialty in a research note on Wednesday, April 16th. They set an "overweight" rating and a $44.00 price target for the company. Finally, Deutsche Bank Aktiengesellschaft began coverage on shares of Bowhead Specialty in a research note on Friday. They set a "buy" rating for the company. Two research analysts have rated the stock with a hold rating and five have given a buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $39.67.

Bowhead Specialty Stock Performance

The business's fifty day moving average price is $34.70 and its 200-day moving average price is $36.04. The stock has a market cap of $1.03 billion, a PE ratio of 21.42 and a beta of -0.69.

Bowhead Specialty (NYSE:BOW - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported $0.37 EPS for the quarter, topping the consensus estimate of $0.36 by $0.01. The company had revenue of $232.36 million during the quarter, compared to analyst estimates of $134.66 million. Bowhead Specialty had a net margin of 10.05% and a return on equity of 13.25%. Analysts forecast that Bowhead Specialty Holdings Inc. will post 1.36 earnings per share for the current fiscal year.

Insider Activity

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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Gallatin Point Capital LLC purchased a new position in shares of Bowhead Specialty in the 4th quarter valued at about $389,599,000. Wasatch Advisors LP increased its position in Bowhead Specialty by 125.3% during the fourth quarter. Wasatch Advisors LP now owns 812,901 shares of the company's stock worth $28,874,000 after buying an additional 452,033 shares during the period. Polar Capital Holdings Plc increased its holdings in shares of Bowhead Specialty by 160.3% in the fourth quarter. Polar Capital Holdings Plc now owns 550,000 shares of the company's stock valued at $19,536,000 after purchasing an additional 338,738 shares during the period. Bessemer Group Inc. acquired a new position in shares of Bowhead Specialty in the first quarter valued at approximately $12,297,000. Finally, Balyasny Asset Management L.P. boosted its stake in shares of Bowhead Specialty by 274.8% in the fourth quarter. Balyasny Asset Management L.P. now owns 314,684 shares of the company's stock valued at $11,178,000 after buying an additional 230,722 shares in the last quarter.

About Bowhead Specialty

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.