Arch Capital Group Ltd. $ACGL is Gladstone Capital Management LLP's 7th Largest Position

Key Points

• Gladstone Capital Management cut its position in Arch Capital Group (NASDAQ: ACGL) by 43.8% in Q3, leaving it with 654,979 shares and making ACGL its 7th largest holding (about $59.4M, ~0.18% of the company).
• Arch Capital reported a strong quarter, beating estimates with EPS of $2.98 vs. $2.34 expected and revenue of $4.93B vs. $3.94B, with a 22.07% net margin and 16.73% return on equity.
• Institutional ownership is high at ~89.1% with large new/additional stakes from Norges Bank, First Trust and UBS, but insiders have recently sold roughly 87,067 shares; analysts’ consensus is a Hold with an average target of $109.20.

Gladstone Capital Management LLP cut its position in Arch Capital Group Ltd. (NASDAQ:ACGL - Free Report) by 43.8% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 654,979 shares of the insurance provider's stock after selling 510,947 shares during the quarter. Arch Capital Group accounts for 6.5% of Gladstone Capital Management LLP's holdings, making the stock its 7th largest holding. Gladstone Capital Management LLP owned approximately 0.18% of Arch Capital Group worth $59,426,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently bought and sold shares of the stock. Norges Bank acquired a new stake in shares of Arch Capital Group during the 2nd quarter worth about $441,551,000. Cooke & Bieler LP acquired a new position in shares of Arch Capital Group during the third quarter worth about $210,856,000. First Trust Advisors LP boosted its stake in shares of Arch Capital Group by 409.5% in the third quarter. First Trust Advisors LP now owns 2,835,648 shares of the insurance provider's stock valued at $257,278,000 after buying an additional 2,279,147 shares in the last quarter. Ameriprise Financial Inc. grew its stake in shares of Arch Capital Group by 289.1% during the 2nd quarter. Ameriprise Financial Inc. now owns 1,368,648 shares of the insurance provider's stock worth $124,615,000 after purchasing an additional 1,016,919 shares during the period. Finally, UBS Group AG boosted its holdings in Arch Capital Group by 56.4% during the third quarter. UBS Group AG now owns 2,738,518 shares of the insurance provider's stock worth $248,466,000 after buying an additional 987,398 shares in the last quarter. 89.07% of the stock is owned by institutional investors and hedge funds.

Arch Capital Group Stock Down 0.8%

ACGL opened at $93.47 on Friday. Arch Capital Group Ltd. has a 12 month low of $82.44 and a 12 month high of $103.39. The business has a 50-day moving average of $96.21 and a two-hundred day moving average of $93.01. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.53 and a quick ratio of 0.53. The stock has a market capitalization of $33.26 billion, a price-to-earnings ratio of 8.04, a price-to-earnings-growth ratio of 3.83 and a beta of 0.40.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last released its earnings results on Monday, February 9th. The insurance provider reported $2.98 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.34 by $0.64. Arch Capital Group had a net margin of 22.07% and a return on equity of 16.73%. The business had revenue of $4.93 billion for the quarter, compared to analysts' expectations of $3.94 billion. During the same period last year, the company earned $2.26 earnings per share. On average, research analysts expect that Arch Capital Group Ltd. will post 8.42 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider David Gansberg sold 5,907 shares of the stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $96.37, for a total transaction of $569,257.59. Following the completion of the sale, the insider owned 336,559 shares of the company's stock, valued at approximately $32,434,190.83. This represents a 1.72% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Nicolas Papadopoulo sold 21,930 shares of Arch Capital Group stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $96.31, for a total transaction of $2,112,078.30. Following the transaction, the chief executive officer directly owned 871,594 shares in the company, valued at approximately $83,943,218.14. This trade represents a 2.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 87,067 shares of company stock worth $8,120,333. Corporate insiders own 4.20% of the company's stock.

Analyst Ratings Changes

ACGL has been the subject of several research analyst reports. The Goldman Sachs Group reaffirmed a "sell" rating and issued a $93.00 price objective (up from $84.00) on shares of Arch Capital Group in a research note on Wednesday, January 7th. Keefe, Bruyette & Woods reissued a "market perform" rating and issued a $104.00 target price (up from $102.00) on shares of Arch Capital Group in a report on Thursday, February 12th. Evercore set a $100.00 price target on Arch Capital Group and gave the company an "in-line" rating in a research report on Wednesday, January 7th. Roth Mkm set a $110.00 price objective on shares of Arch Capital Group and gave the company a "buy" rating in a research note on Tuesday, December 2nd. Finally, Citigroup restated a "buy" rating and set a $120.00 target price (up from $113.00) on shares of Arch Capital Group in a research report on Friday, February 13th. Nine equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $109.20.

Arch Capital Group Company Profile

Arch Capital Group Ltd. NASDAQ: ACGL is a Bermuda-based insurance and reinsurance holding company that underwrites a broad range of property and casualty, mortgage, and specialty risk products. The company operates through a group of underwriting subsidiaries and platforms to provide insurance, reinsurance and related risk solutions tailored to commercial, institutional and individual clients.

Arch's product mix includes treaty and facultative reinsurance, primary casualty and property insurance, mortgage insurance and other specialty lines.

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