Arch Capital Group (NASDAQ:ACGL) Releases Earnings Results, Beats Expectations By $0.36 EPS

Key Points

• Arch Capital Group beat quarterly expectations, reporting EPS of $2.67 versus the $2.31 consensus estimate and revenue of $4.66 billion compared with $4.06 billion expected. The company posted a 17.06% return on equity and a 24.40% net margin.
• Despite the earnings beat, shares fell 2.0% to $100.34 during Tuesday trading. The stock remains below its 52-week high of $107.08 but above its 52-week low of $82.44.
• Analysts maintain a consensus “Hold” rating with an average price target of $108.39, while CFO Francois Morin sold 11,010 shares for approximately $1.09 million.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) issued its earnings results on Tuesday. The insurance provider reported $2.67 EPS for the quarter, topping analysts' consensus estimates of $2.31 by $0.36, FiscalAI reports. The firm had revenue of $4.66 billion for the quarter, compared to the consensus estimate of $4.06 billion. Arch Capital Group had a return on equity of 17.06% and a net margin of 24.40%.

Arch Capital Group Trading Down 2.0%

Arch Capital Group stock traded down $2.00 during trading on Tuesday, reaching $100.34. 1,839,613 shares of the company were exchanged, compared to its average volume of 2,350,017. The company has a debt-to-equity ratio of 0.23, a current ratio of 0.57 and a quick ratio of 0.57. The stock's 50 day simple moving average is $97.57 and its two-hundred day simple moving average is $96.60. The company has a market capitalization of $34.24 billion, a P/E ratio of 7.85, a PEG ratio of 3.06 and a beta of 0.28. Arch Capital Group has a 52-week low of $82.44 and a 52-week high of $107.08.

Insider Buying and Selling

In other news, CFO Francois Morin sold 11,010 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $99.32, for a total transaction of $1,093,513.20. Following the completion of the sale, the chief financial officer owned 184,826 shares in the company, valued at $18,356,918.32. This trade represents a 5.62% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 3.30% of the stock is owned by company insiders.

Analyst Ratings Changes

A number of research analysts have issued reports on the company. Mizuho set a $100.00 price target on Arch Capital Group and gave the company a "neutral" rating in a report on Wednesday, September 16th. Wells Fargo & Company reissued an "overweight" rating and set a $107.00 price target (down from $117.00) on shares of Arch Capital Group in a report on Monday, October 12th. Keefe, Bruyette & Woods dropped their price target on shares of Arch Capital Group from $99.00 to $95.00 and set a "market perform" rating on the stock in a research report on Monday, October 12th. Royal Bank Of Canada reissued an "outperform" rating and set a $120.00 target price (up from $115.00) on shares of Arch Capital Group in a research note on Thursday, July 30th. Finally, Weiss Ratings upgraded Arch Capital Group from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, October 9th. Six investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Arch Capital Group currently has a consensus rating of "Hold" and a consensus price target of $108.39.

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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