Arrowstreet Capital Limited Partnership Grows Holdings in Arch Capital Group Ltd. $ACGL

Key Points

• Arrowstreet Capital dramatically increased its stake in Arch Capital Group, raising holdings by 572.8% in the fourth quarter to 1,268,601 shares worth about $121.7 million.
• Institutional ownership remains very high, with hedge funds and other institutional investors holding 89.07% of ACGL shares, while several firms including Legal & General, JPMorgan, and National Pension Service also boosted their positions.
• Arch Capital’s financial and analyst backdrop is mixed but solid: the company reported $2.50 EPS and $4.52 billion in quarterly revenue, while analysts currently rate the stock a consensus Hold with a $106.81 target price.

Arrowstreet Capital Limited Partnership raised its position in Arch Capital Group Ltd. (NASDAQ:ACGL - Free Report) by 572.8% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,268,601 shares of the insurance provider's stock after purchasing an additional 1,080,049 shares during the period. Arrowstreet Capital Limited Partnership owned about 0.35% of Arch Capital Group worth $121,684,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in ACGL. Legal & General Group Plc increased its position in Arch Capital Group by 4.3% during the 4th quarter. Legal & General Group Plc now owns 2,944,169 shares of the insurance provider's stock worth $282,405,000 after purchasing an additional 121,090 shares in the last quarter. JPMorgan Chase & Co. increased its position in Arch Capital Group by 4.6% during the 3rd quarter. JPMorgan Chase & Co. now owns 8,190,927 shares of the insurance provider's stock worth $743,168,000 after purchasing an additional 360,626 shares in the last quarter. NEOS Investment Management LLC boosted its holdings in Arch Capital Group by 49.1% in the 3rd quarter. NEOS Investment Management LLC now owns 49,652 shares of the insurance provider's stock worth $4,505,000 after acquiring an additional 16,343 shares during the period. National Pension Service boosted its holdings in Arch Capital Group by 8.5% in the 4th quarter. National Pension Service now owns 683,272 shares of the insurance provider's stock worth $65,539,000 after acquiring an additional 53,661 shares during the period. Finally, Asset Management One Co. Ltd. boosted its holdings in Arch Capital Group by 10.6% in the 4th quarter. Asset Management One Co. Ltd. now owns 187,002 shares of the insurance provider's stock worth $18,024,000 after acquiring an additional 17,923 shares during the period. 89.07% of the stock is currently owned by hedge funds and other institutional investors.

Arch Capital Group Price Performance

Shares of ACGL opened at $91.50 on Tuesday. The firm has a market capitalization of $31.97 billion, a price-to-earnings ratio of 7.03, a price-to-earnings-growth ratio of 4.58 and a beta of 0.32. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.55 and a current ratio of 0.55. Arch Capital Group Ltd. has a one year low of $82.44 and a one year high of $103.39. The stock's fifty day moving average is $94.35 and its 200-day moving average is $95.01.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last issued its quarterly earnings results on Tuesday, March 31st. The insurance provider reported $2.50 EPS for the quarter. The company had revenue of $4.52 billion for the quarter. Arch Capital Group had a return on equity of 17.61% and a net margin of 24.64%. Equities analysts anticipate that Arch Capital Group Ltd. will post 9.3 EPS for the current year.

Insider Transactions at Arch Capital Group

In other news, Director Daniel Joseph Houston bought 5,300 shares of the stock in a transaction that occurred on Thursday, April 30th. The shares were purchased at an average cost of $94.08 per share, with a total value of $498,624.00. Following the completion of the acquisition, the director directly owned 9,915 shares in the company, valued at approximately $932,803.20. The trade was a 114.84% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Brian S. Posner sold 3,000 shares of Arch Capital Group stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $19.66, for a total value of $58,980.00. The disclosure for this sale is available in the SEC filing. 3.30% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the company. Keefe, Bruyette & Woods decreased their price target on Arch Capital Group from $105.00 to $102.00 and set a "market perform" rating for the company in a report on Tuesday, May 5th. Wells Fargo & Company increased their target price on Arch Capital Group from $109.00 to $110.00 and gave the company an "overweight" rating in a research note on Thursday, April 30th. UBS Group reiterated a "buy" rating and set a $114.00 target price (up from $113.00) on shares of Arch Capital Group in a research note on Tuesday, February 17th. Cantor Fitzgerald reiterated a "neutral" rating and set a $100.00 target price (up from $97.00) on shares of Arch Capital Group in a research note on Tuesday, February 17th. Finally, Citigroup increased their target price on Arch Capital Group from $120.00 to $122.50 and gave the company a "buy" rating in a research note on Thursday, April 30th. Eight analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $106.81.

About Arch Capital Group

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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