Accelerant Holdings (NYSE:ARX) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Analysts rate Accelerant Holdings “Hold” on average: Of 12 covering firms, seven recommend holding, four recommend buying, and one recommends selling. The average 12-month price target is $18.95, below the stock’s $19.90 opening price.
• Accelerant recently exceeded earnings expectations: The company reported quarterly EPS of $0.32 versus the $0.16 consensus estimate, with revenue of $356.9 million. However, it posted a negative net margin of 113.08%.
• Insiders have been selling shares: Company insiders sold 1.24 million shares worth approximately $16.6 million over the past 90 days, although insiders still own 66.59% of the stock. Several institutional investors, including California State Teachers Retirement System, increased their positions.

Shares of Accelerant Holdings (NYSE:ARX - Get Free Report) have been given a consensus rating of "Hold" by the twelve research firms that are currently covering the company, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and four have issued a buy rating on the company. The average twelve-month price target among analysts that have issued ratings on the stock in the last year is $18.95.

A number of analysts recently weighed in on the stock. Royal Bank Of Canada cut shares of Accelerant from a "moderate buy" rating to a "hold" rating and set a $20.25 target price on the stock. in a research note on Friday, August 14th. Wells Fargo & Company decreased their price objective on Accelerant from $17.00 to $16.00 and set an "overweight" rating on the stock in a report on Thursday, July 9th. UBS Group set a $16.00 price objective on Accelerant in a research note on Thursday, May 21st. Piper Sandler cut Accelerant from an "overweight" rating to a "hold" rating and set a $20.25 target price for the company. in a report on Thursday, August 13th. Finally, Citizens Jmp downgraded Accelerant from a "market outperform" rating to a "hold" rating in a research report on Friday, August 14th.

Accelerant Stock Up 1.0%

ARX stock opened at $19.90 on Friday. Accelerant has a twelve month low of $9.18 and a twelve month high of $20.73. The company has a market cap of $4.32 billion, a PE ratio of -2.99 and a beta of 0.08. The business's 50-day simple moving average is $15.25 and its 200 day simple moving average is $13.93. The company has a quick ratio of 1.53, a current ratio of 1.53 and a debt-to-equity ratio of 0.16.

Accelerant (NYSE:ARX - Get Free Report) last issued its earnings results on Thursday, August 13th. The company reported $0.32 EPS for the quarter, beating analysts' consensus estimates of $0.16 by $0.16. The business had revenue of $356.90 million during the quarter. Accelerant had a positive return on equity of 42.79% and a negative net margin of 113.08%. On average, research analysts anticipate that Accelerant will post 0.9 earnings per share for the current year.

Insider Activity

In related news, Director Nancy Hasley sold 20,489 shares of Accelerant stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $19.56, for a total transaction of $400,764.84. Following the completion of the transaction, the director directly owned 1,341,834 shares of the company's stock, valued at $26,246,273.04. This trade represents a 1.50% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Matthew David Sternberg sold 17,568 shares of the company's stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $14.64, for a total transaction of $257,195.52. Following the sale, the chief operating officer directly owned 596,482 shares in the company, valued at $8,732,496.48. This represents a 2.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 1,237,271 shares of company stock worth $16,557,879 over the last 90 days. 66.59% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of ARX. California State Teachers Retirement System lifted its holdings in Accelerant by 2,101.5% in the second quarter. California State Teachers Retirement System now owns 769,899 shares of the company's stock valued at $9,023,000 after buying an additional 734,927 shares during the period. Militia Capital Management LLC bought a new stake in shares of Accelerant during the 1st quarter valued at $2,004,000. Royal Bank of Canada lifted its stake in shares of Accelerant by 50.3% in the 1st quarter. Royal Bank of Canada now owns 7,729 shares of the company's stock valued at $103,000 after purchasing an additional 2,585 shares during the period. The Manufacturers Life Insurance Company bought a new position in shares of Accelerant in the 1st quarter worth $137,000. Finally, SummitTX Capital L.P. boosted its position in shares of Accelerant by 11.0% in the 1st quarter. SummitTX Capital L.P. now owns 62,999 shares of the company's stock worth $842,000 after purchasing an additional 6,219 shares during the last quarter.

About Accelerant

Accelerant Holdings, together with its subsidiaries, operates a data-driven risk exchange that connects selected specialty insurance underwriters with risk capital partners. It operates through Exchange Services, MGA Operations, and Underwriting segments. The Exchange Services segment consists of risk exchange, its operating platform that incorporates various technology, data ingestion, and agency operations that serve the needs of its members and risk capital partners. Its Risk capital partners write premiums directly through the Risk Exchange pay us a fixed-percentage, volume-based fee for sourcing, managing, and monitoring the business they write.

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