Bowhead Specialty (NYSE:BOW) Shares Gap Up on Strong Earnings

Key Points

• Bowhead Specialty shares jumped after the company reported quarterly EPS of $0.48, narrowly beating the $0.47 consensus estimate. The stock opened at $33.85, up from its prior close of $30.59.
• Analyst sentiment remains positive, with five Buy ratings and four Holds producing a consensus “Moderate Buy” rating and an average price target of $33.71. Piper Sandler and RBC recently raised their targets to $36 and $38, respectively.
• Institutional investors increased their positions, including Polar Capital, Vanguard, American Family Investments and Qube Research & Technologies, while the company’s market capitalization reached approximately $1.10 billion.

Bowhead Specialty Holdings Inc. (NYSE:BOW - Get Free Report)'s stock price gapped up before the market opened on Monday following a better than expected earnings announcement. The stock had previously closed at $30.59, but opened at $33.85. Bowhead Specialty shares last traded at $33.71, with a volume of 150,274 shares.

The company reported $0.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.47 by $0.01. Bowhead Specialty had a net margin of 9.99% and a return on equity of 13.80%. The business had revenue of $163.86 million during the quarter, compared to the consensus estimate of $278.69 million.

Wall Street Analysts Forecast Growth

BOW has been the topic of a number of analyst reports. Piper Sandler upped their target price on shares of Bowhead Specialty from $32.00 to $36.00 and gave the stock an "overweight" rating in a report on Wednesday, July 15th. Royal Bank Of Canada boosted their price objective on Bowhead Specialty from $30.00 to $38.00 and gave the stock an "outperform" rating in a report on Monday, July 13th. JPMorgan Chase & Co. increased their price objective on Bowhead Specialty from $30.00 to $33.00 and gave the stock a "neutral" rating in a research note on Monday, July 20th. Weiss Ratings upgraded Bowhead Specialty from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, June 23rd. Finally, Citizens Jmp cut their target price on Bowhead Specialty from $38.00 to $35.00 and set a "market outperform" rating on the stock in a research report on Monday, April 13th. Five analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $33.71.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Polar Capital Holdings Plc boosted its stake in Bowhead Specialty by 77.6% in the 4th quarter. Polar Capital Holdings Plc now owns 1,225,000 shares of the company's stock worth $34,962,000 after purchasing an additional 535,065 shares during the period. Vanguard Group Inc. increased its position in shares of Bowhead Specialty by 36.7% during the third quarter. Vanguard Group Inc. now owns 1,506,887 shares of the company's stock valued at $40,746,000 after buying an additional 404,199 shares during the period. Gillson Capital LP bought a new stake in shares of Bowhead Specialty during the fourth quarter valued at about $11,317,000. American Family Investments Inc. lifted its holdings in shares of Bowhead Specialty by 6.9% in the second quarter. American Family Investments Inc. now owns 5,023,778 shares of the company's stock worth $188,542,000 after buying an additional 323,017 shares in the last quarter. Finally, Qube Research & Technologies Ltd lifted its holdings in shares of Bowhead Specialty by 286.5% in the third quarter. Qube Research & Technologies Ltd now owns 326,228 shares of the company's stock worth $8,821,000 after buying an additional 241,829 shares in the last quarter.

Bowhead Specialty Price Performance

The business's 50-day moving average price is $29.00 and its 200 day moving average price is $26.07. The company has a market capitalization of $1.10 billion, a P/E ratio of 19.45, a price-to-earnings-growth ratio of 0.92 and a beta of -0.10. The company has a quick ratio of 0.47, a current ratio of 0.47 and a debt-to-equity ratio of 0.32.

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.

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