Arch Capital Group Ltd. (NASDAQ:ACGL) Stock Has Consensus Price Target of $108.39 According to Analysts

Key Points

• Analysts have a consensus “Hold” rating on Arch Capital Group, with seven holds, six buys and one sell among 14 brokerages. The average 12-month price target is $108.39, modestly above the reported $102.50 share price.
• Arch reported quarterly EPS of $2.67 and revenue of $4.66 billion, exceeding analyst estimates of $2.31 and $4.06 billion, respectively. Higher investment income and approximately $1.4 billion in share repurchases supported results.
• Despite the earnings beat, underlying insurance performance weakened: net income declined year over year, underwriting income fell to $702 million, and the combined ratio worsened to 82.5% amid $234 million in catastrophe losses.

Arch Capital Group Ltd. (NASDAQ:ACGL - Get Free Report) has earned an average recommendation of "Hold" from the fourteen brokerages that are currently covering the stock, Marketbeat reports. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and six have given a buy rating to the company. The average 1-year price target among brokerages that have covered the stock in the last year is $108.39.

Several brokerages have weighed in on ACGL. Morgan Stanley set a $100.00 target price on Arch Capital Group and gave the stock an "equal weight" rating in a report on Tuesday, October 13th. Atlantic Securities set a $126.00 target price on shares of Arch Capital Group in a research note on Wednesday, July 15th. UBS Group restated a "buy" rating and set a $120.00 price target (up from $114.00) on shares of Arch Capital Group in a research note on Wednesday, July 8th. Mizuho set a $100.00 price objective on Arch Capital Group and gave the company a "neutral" rating in a report on Wednesday, September 16th. Finally, JPMorgan Chase & Co. reduced their target price on shares of Arch Capital Group from $118.00 to $113.00 and set a "neutral" rating for the company in a report on Friday, October 9th.

Arch Capital Group Stock Performance

Shares of NASDAQ:ACGL opened at $102.50 on Thursday. The company has a market capitalization of $34.98 billion, a price-to-earnings ratio of 8.01, a PEG ratio of 3.06 and a beta of 0.28. The firm's 50-day moving average is $97.69 and its 200 day moving average is $96.66. Arch Capital Group has a 12 month low of $84.00 and a 12 month high of $107.08. The company has a current ratio of 0.57, a quick ratio of 0.57 and a debt-to-equity ratio of 0.23.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last issued its earnings results on Tuesday, October 27th. The insurance provider reported $2.67 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.31 by $0.36. The firm had revenue of $4.66 billion during the quarter, compared to analyst estimates of $4.06 billion. Arch Capital Group had a net margin of 24.40% and a return on equity of 17.06%. During the same period in the previous year, the firm earned $2.77 earnings per share. Research analysts predict that Arch Capital Group will post 9.77 EPS for the current year.

Insider Buying and Selling at Arch Capital Group

In related news, CFO Francois Morin sold 11,010 shares of the business's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $99.32, for a total value of $1,093,513.20. Following the completion of the transaction, the chief financial officer directly owned 184,826 shares in the company, valued at $18,356,918.32. The trade was a 5.62% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 3.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Arch Capital Group

Institutional investors and hedge funds have recently modified their holdings of the business. Dimensional Fund Advisors LP raised its stake in shares of Arch Capital Group by 2.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 4,173,885 shares of the insurance provider's stock worth $400,643,000 after buying an additional 117,929 shares during the period. Madison Asset Management LLC purchased a new position in Arch Capital Group during the second quarter valued at $368,808,000. First Trust Advisors LP lifted its holdings in Arch Capital Group by 319.5% during the first quarter. First Trust Advisors LP now owns 2,626,148 shares of the insurance provider's stock valued at $252,084,000 after purchasing an additional 2,000,162 shares in the last quarter. Robeco Institutional Asset Management B.V. lifted its holdings in Arch Capital Group by 10.3% during the third quarter. Robeco Institutional Asset Management B.V. now owns 2,259,582 shares of the insurance provider's stock valued at $208,695,000 after purchasing an additional 210,609 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its position in shares of Arch Capital Group by 50.6% in the first quarter. Arrowstreet Capital Limited Partnership now owns 1,910,063 shares of the insurance provider's stock valued at $183,347,000 after purchasing an additional 641,462 shares during the period. Hedge funds and other institutional investors own 89.07% of the company's stock.

Key Stories Impacting Arch Capital Group

Here are the key news stories impacting Arch Capital Group this week:

• Positive Sentiment: Arch reported third-quarter adjusted earnings of $2.67 per share, exceeding the $2.31 consensus estimate, while revenue of $4.66 billion also surpassed expectations. Higher investment income was a key earnings driver. Arch Capital Q3 Earnings Beat Estimates on Higher Investment Income
• Positive Sentiment: Net investment income increased to $451 million from $408 million a year earlier, helping offset pressure in the insurance business. Arch also repurchased approximately $1.4 billion of shares during the quarter, supporting per-share value and signaling management’s confidence in the stock. Arch Capital Q3 Net Income Falls to $1.025 Billion
• Positive Sentiment: The earnings release and management’s subsequent conference call provide investors with evidence that Arch’s diversified platform and investment portfolio continue to generate substantial earnings, despite a more difficult underwriting quarter. Arch Capital Q3 2026 Earnings Call Transcript
• Neutral Sentiment: Book value per common share was $67.90 at September 30, while gross premiums written were broadly stable year over year at $5.391 billion. These figures suggest the business remains well-capitalized, but growth was limited. Arch Capital Reports Q3 Earnings: Key Metrics
• Negative Sentiment: Reported net income fell to $1.025 billion, or $3.00 per diluted share, from $1.340 billion, or $3.56 per share, a year earlier. Net premiums earned declined 6.3% to $4.014 billion. Arch Capital Q3 Net Income Falls to $1.025 Billion
• Negative Sentiment: Underwriting income decreased to $702 million from $871 million, and the combined ratio worsened to 82.5% from 79.8%. Catastrophe losses totaled $234 million, weighing on insurance profitability. Arch Capital Q3 Earnings Beat Estimates on Higher Investment Income

About Arch Capital Group

Arch Capital Group Ltd. is a Bermuda-based insurance, reinsurance and mortgage insurance company whose shares trade on the Nasdaq under the symbol ACGL. The company was established in 1995 and has developed into a global provider of specialty risk-management products and services.

Through its insurance operations, Arch offers property, casualty, specialty, and accident and health coverage to businesses and other policyholders. Its reinsurance operations provide coverage and risk-transfer solutions to insurance companies across a range of property and casualty lines.

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