Accelerant Holdings (NYSE:ARX) Stock Has Consensus Target Price of $17.98 According to Analysts

Key Points

• Analyst sentiment is mixed: Twelve analysts rate Accelerant Holdings an average “Hold,” with seven holds, three buys and two sells. The consensus 12-month price target is $17.98, below the reported share price of $19.73.
• Recent broker actions have generally become more cautious, including downgrades from Citigroup, TD Cowen and Citizens JMP, while Morgan Stanley cut its target to $14.00 and BMO Capital Markets raised its target to $17.00.
• Accelerant exceeded quarterly earnings expectations, reporting $0.32 in earnings per share versus the $0.16 consensus estimate on $356.9 million in revenue. However, insiders sold 821,771 shares worth approximately $11.1 million during the last quarter, while insiders retain a 66.59% ownership stake.

Accelerant Holdings (NYSE:ARX - Get Free Report) has been assigned an average rating of "Hold" from the twelve ratings firms that are covering the stock, Marketbeat reports. Two investment analysts have rated the stock with a sell recommendation, seven have given a hold recommendation and three have assigned a buy recommendation to the company. The average 12-month price target among brokers that have issued a report on the stock in the last year is $17.98.

Several brokerages have recently weighed in on ARX. Morgan Stanley decreased their target price on Accelerant from $16.00 to $14.00 and set an "equal weight" rating for the company in a research report on Monday, July 6th. BMO Capital Markets boosted their price target on Accelerant from $16.50 to $17.00 and gave the stock an "outperform" rating in a research report on Tuesday, June 16th. Citigroup cut Accelerant from an "outperform" rating to a "market perform" rating in a report on Thursday, August 13th. TD Cowen downgraded shares of Accelerant from a "buy" rating to a "hold" rating and lowered their price objective for the company from $30.00 to $20.25 in a research report on Wednesday. Finally, Citizens Jmp lowered shares of Accelerant from a "market outperform" rating to a "hold" rating in a research note on Friday, August 14th.

Insider Transactions at Accelerant

In other Accelerant news, Director Nancy Hasley sold 20,489 shares of the firm's stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $19.56, for a total value of $400,764.84. Following the sale, the director owned 1,341,834 shares in the company, valued at approximately $26,246,273.04. This trade represents a 1.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jeffrey Radke sold 95,223 shares of Accelerant stock in a transaction dated Monday, July 27th. The shares were sold at an average price of $14.60, for a total transaction of $1,390,255.80. Following the sale, the chief executive officer owned 27,751,939 shares in the company, valued at approximately $405,178,309.40. This represents a 0.34% 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. Over the last quarter, insiders sold 821,771 shares of company stock worth $11,126,496. Insiders own 66.59% of the company's stock.

Institutional Trading of Accelerant

Several institutional investors and hedge funds have recently bought and sold shares of ARX. State of Wyoming purchased a new position in shares of Accelerant in the first quarter worth approximately $28,000. PNC Financial Services Group Inc. boosted its position in shares of Accelerant by 73.6% in the first quarter. PNC Financial Services Group Inc. now owns 6,157 shares of the company's stock worth $82,000 after buying an additional 2,611 shares during the period. Royal Bank of Canada boosted its position in shares of Accelerant by 50.3% in the first quarter. Royal Bank of Canada now owns 7,729 shares of the company's stock worth $103,000 after buying an additional 2,585 shares during the period. Arcus Capital Partners LLC purchased a new position in shares of Accelerant during the first quarter valued at $135,000. Finally, The Manufacturers Life Insurance Company acquired a new position in Accelerant during the first quarter valued at $137,000.

Accelerant Trading Up 0.0%

NYSE:ARX opened at $19.73 on Thursday. The company has a quick ratio of 1.53, a current ratio of 1.53 and a debt-to-equity ratio of 0.16. The stock has a fifty day simple moving average of $17.65 and a 200-day simple moving average of $15.09. The company has a market capitalization of $4.29 billion, a PE ratio of -2.97 and a beta of 0.08. Accelerant has a 52-week low of $9.18 and a 52-week high of $19.90.

Accelerant (NYSE:ARX - Get Free Report) last posted its quarterly earnings data on Thursday, August 13th. The company reported $0.32 earnings per share 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 negative net margin of 113.08% and a positive return on equity of 42.79%. On average, equities research analysts expect that Accelerant will post 0.9 earnings per share for the current fiscal year.

Accelerant Company Profile

Accelerant Holdings is a global specialty insurance platform that connects managing general agents (MGAs) with insurance capacity providers. Through its risk exchange, the company supports the development, underwriting and distribution of specialty insurance products across niche and complex risks.

Accelerant provides participating MGAs with access to underwriting capacity, data and analytics, technology, and other operational resources. Its model is designed to help specialty insurance businesses expand their offerings while giving capacity providers access to a diversified portfolio of insurance risks.

Founded in 2018, Accelerant serves insurance professionals across markets including North America, the United Kingdom, Europe and Australia.

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