Zacks Research Expects Lower Earnings for Arch Capital Group

Key Points

• Zacks Research lowered its Q4 2027 EPS estimate for Arch Capital Group to $2.69 from $2.70; analysts estimate full-year earnings of $9.67 per share.
• Arch Capital’s latest quarterly results exceeded expectations, with EPS of $2.56 versus a $2.47 consensus and revenue of $4.67 billion versus $4.36 billion expected.
• The stock opened at $96.85, while analyst sentiment remains mixed with a consensus “Hold” rating and an average price target of $108.39; institutional investors own 89.07% of shares.

Arch Capital Group Ltd. (NASDAQ:ACGL - Free Report) - Stock analysts at Zacks Research dropped their Q4 2027 earnings per share (EPS) estimates for Arch Capital Group in a research note issued on Tuesday, October 13th. Zacks Research analyst Team now anticipates that the insurance provider will post earnings per share of $2.69 for the quarter, down from their prior forecast of $2.70. The consensus estimate for Arch Capital Group's current full-year earnings is $9.67 per share.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last posted its quarterly earnings data on Tuesday, July 28th. The insurance provider reported $2.56 EPS for the quarter, beating the consensus estimate of $2.47 by $0.09. Arch Capital Group had a return on equity of 17.06% and a net margin of 24.40%. The firm had revenue of $4.67 billion during the quarter, compared to the consensus estimate of $4.36 billion. During the same period in the prior year, the business earned $2.58 EPS.

Other equities research analysts have also recently issued research reports about the company. 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. Wells Fargo & Company reaffirmed 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. Citigroup reiterated a "market outperform" rating on shares of Arch Capital Group in a research report on Wednesday, July 29th. Keefe, Bruyette & Woods lowered their price objective 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. Finally, Morgan Stanley set a $100.00 price objective on shares of Arch Capital Group and gave the company an "equal weight" rating in a research note on Tuesday. Six research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Arch Capital Group currently has a consensus rating of "Hold" and an average target price of $108.39.

Arch Capital Group Trading Down 0.3%

Shares of ACGL stock opened at $96.85 on Wednesday. The business's 50 day moving average is $97.14 and its two-hundred day moving average is $96.61. Arch Capital Group has a twelve month low of $82.44 and a twelve month high of $107.08. The company has a market capitalization of $33.05 billion, a P/E ratio of 7.57, a price-to-earnings-growth ratio of 2.93 and a beta of 0.28. The company has a current ratio of 0.57, a quick ratio of 0.57 and a debt-to-equity ratio of 0.23.

Hedge Funds Weigh In On Arch Capital Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP lifted its holdings in shares of Arch Capital Group by 2.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,173,885 shares of the insurance provider's stock valued at $400,643,000 after buying an additional 117,929 shares during the period. Madison Asset Management LLC purchased a new stake in shares of Arch Capital Group in the second quarter valued at approximately $368,808,000. First Trust Advisors LP grew 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 worth $252,084,000 after acquiring an additional 2,000,162 shares during the period. Arrowstreet Capital Limited Partnership grew its holdings in Arch Capital Group by 50.6% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,910,063 shares of the insurance provider's stock worth $183,347,000 after acquiring an additional 641,462 shares during the period. Finally, Hsbc Holdings PLC raised its position in Arch Capital Group by 230.0% in the first quarter. Hsbc Holdings PLC now owns 1,286,178 shares of the insurance provider's stock worth $123,354,000 after acquiring an additional 896,480 shares in the last quarter. Institutional investors and hedge funds own 89.07% of the company's stock.

Insider Buying and Selling

In related news, CFO Francois Morin sold 11,010 shares of the firm's stock in a transaction dated 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 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 3.30% of the stock is currently owned by insiders.

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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