Arch Capital Group Ltd. $ACGL Shares Acquired by Sumitomo Mitsui Trust Group Inc.

Key Points

• Sumitomo Mitsui Trust Group Inc. increased its stake in Arch Capital Group by 3.4% in Q4 to 1,033,834 shares (about a 0.29% ownership) worth roughly $99.17 million, while institutional investors collectively own about 89.07% of the stock.
• Arch delivered an earnings beat, reporting Q results of $2.98 EPS vs. $2.34 expected and revenue of $4.93 billion vs. $3.94 billion est.; the company has a $34.58 billion market cap and a P/E of 8.35.
• Analyst coverage is mixed but tilted positive — nine Buys, eight Holds and one Sell — with a consensus price target of $109.40, and notable targets including Morgan Stanley $125, UBS $114 and Wells Fargo's upgraded "overweight" at $109.

Sumitomo Mitsui Trust Group Inc. lifted its position in shares of Arch Capital Group Ltd. (NASDAQ:ACGL - Free Report) by 3.4% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,033,834 shares of the insurance provider's stock after purchasing an additional 33,869 shares during the period. Sumitomo Mitsui Trust Group Inc. owned about 0.29% of Arch Capital Group worth $99,165,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in the company. WCM Investment Management LLC lifted its position in shares of Arch Capital Group by 1.3% during the third quarter. WCM Investment Management LLC now owns 13,525,402 shares of the insurance provider's stock worth $1,214,987,000 after purchasing an additional 171,693 shares in the last quarter. JPMorgan Chase & Co. raised its holdings in Arch Capital Group by 4.6% in the third quarter. JPMorgan Chase & Co. now owns 8,190,927 shares of the insurance provider's stock valued at $743,168,000 after acquiring an additional 360,626 shares in the last quarter. First Trust Advisors LP raised its holdings in 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 acquiring an additional 2,279,147 shares in the last quarter. UBS Group AG raised its holdings in Arch Capital Group by 56.4% in the third quarter. UBS Group AG now owns 2,738,518 shares of the insurance provider's stock valued at $248,466,000 after acquiring an additional 987,398 shares in the last quarter. Finally, Marshfield Associates raised its holdings in Arch Capital Group by 5.5% in the third quarter. Marshfield Associates now owns 2,724,635 shares of the insurance provider's stock valued at $247,206,000 after acquiring an additional 141,223 shares in the last quarter. 89.07% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms recently issued reports on ACGL. Wells Fargo & Company upped their price target on shares of Arch Capital Group from $106.00 to $109.00 and gave the company an "overweight" rating in a report on Wednesday, February 11th. Morgan Stanley set a $125.00 price target on shares of Arch Capital Group in a report on Friday, January 16th. Evercore set a $100.00 price target on shares of Arch Capital Group and gave the company an "in-line" rating in a report on Wednesday, January 7th. Weiss Ratings raised shares of Arch Capital Group from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, February 4th. Finally, UBS Group reaffirmed a "buy" rating and issued a $114.00 price target (up from $113.00) on shares of Arch Capital Group in a report on Tuesday, February 17th. Nine equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Arch Capital Group currently has an average rating of "Hold" and a consensus target price of $109.40.

Arch Capital Group Stock Up 1.1%

ACGL stock opened at $97.06 on Tuesday. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.53 and a quick ratio of 0.53. Arch Capital Group Ltd. has a 1-year low of $82.44 and a 1-year high of $103.39. The firm has a fifty day moving average price of $96.93 and a two-hundred day moving average price of $93.76. The firm has a market cap of $34.58 billion, a price-to-earnings ratio of 8.35, a PEG ratio of 3.92 and a beta of 0.41.

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 for the quarter, beating 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 firm had revenue of $4.93 billion during the quarter, compared to analyst estimates of $3.94 billion. During the same quarter in the previous year, the firm earned $2.26 earnings per share. Research analysts predict that Arch Capital Group Ltd. will post 8.42 EPS for the current year.

Insider Buying and Selling at Arch Capital Group

In other news, Director Brian S. Posner sold 3,000 shares of the company's stock in a transaction dated Wednesday, March 11th. The shares were sold at an average price of $17.11, for a total transaction of $51,330.00. Following the completion of the transaction, the director owned 2,000 shares in the company, valued at approximately $34,220. This represents a 60.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Nicolas Papadopoulo sold 21,930 shares of the company's stock in a transaction dated Tuesday, March 10th. The stock was sold at an average price of $96.31, for a total transaction of $2,112,078.30. Following the transaction, the chief executive officer owned 871,594 shares of the company's stock, valued at $83,943,218.14. This represents a 2.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 78,267 shares of company stock worth $7,291,637 in the last ninety days. 3.30% of the stock is currently owned by company insiders.

Arch Capital Group 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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