Capital International Sarl Cuts Stock Holdings in Arch Capital Group Ltd. $ACGL

Key Points

• Capital International Sarl cut its stake in Arch Capital by 75.5% in Q3, selling 80,785 shares and retaining 26,162 shares valued at $2.374 million.
• Arch Capital topped estimates in the latest quarter with EPS of $2.98 (vs. $2.34 consensus) and revenue of $4.93 billion (vs. $3.94 billion), and the company has a market cap of $34.22 billion and a P/E of 8.28.
• Analysts are mixed but the consensus rating is a Hold with an average price target of $109.20 (nine Buys, eight Holds, one Sell).

Capital International Sarl decreased its stake in Arch Capital Group Ltd. (NASDAQ:ACGL - Free Report) by 75.5% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 26,162 shares of the insurance provider's stock after selling 80,785 shares during the period. Capital International Sarl's holdings in Arch Capital Group were worth $2,374,000 at the end of the most recent quarter.

A number of other large investors also recently modified their holdings of ACGL. Vanguard Group Inc. boosted its stake in shares of Arch Capital Group by 1.2% during the second quarter. Vanguard Group Inc. now owns 42,414,557 shares of the insurance provider's stock valued at $3,861,845,000 after purchasing an additional 493,583 shares during the period. Artisan Partners Limited Partnership lifted its position in Arch Capital Group by 1.7% during the 2nd quarter. Artisan Partners Limited Partnership now owns 23,833,290 shares of the insurance provider's stock valued at $2,170,021,000 after acquiring an additional 408,950 shares during the period. WCM Investment Management LLC boosted its position in shares of Arch Capital Group by 1.3% in the 3rd 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. Geode Capital Management LLC grew its stake in shares of Arch Capital Group by 1.1% in the second quarter. Geode Capital Management LLC now owns 10,502,003 shares of the insurance provider's stock worth $952,523,000 after acquiring an additional 115,465 shares during the last quarter. Finally, JPMorgan Chase & Co. increased its stake 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 valued at $743,168,000 after purchasing an additional 360,626 shares in the last quarter. 89.07% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research analysts have recently weighed in on the stock. JPMorgan Chase & Co. boosted their price objective on shares of Arch Capital Group from $111.00 to $117.00 and gave the company a "neutral" rating in a report on Wednesday, January 7th. Evercore set a $100.00 target price on shares of Arch Capital Group and gave the stock an "in-line" rating in a research note on Wednesday, January 7th. The Goldman Sachs Group reiterated a "sell" rating and set a $93.00 target price (up from $84.00) on shares of Arch Capital Group in a research report on Wednesday, January 7th. Wells Fargo & Company increased their price target on Arch Capital Group from $106.00 to $109.00 and gave the company an "overweight" rating in a research note on Wednesday, February 11th. Finally, Mizuho lifted their price objective on shares of Arch Capital Group from $95.00 to $102.00 and gave the stock a "neutral" rating in a research note on Thursday, February 12th. Nine analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Arch Capital Group has an average rating of "Hold" and an average price target of $109.20.

Arch Capital Group Price Performance

Shares of ACGL stock opened at $96.19 on Wednesday. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.53 and a current ratio of 0.53. Arch Capital Group Ltd. has a fifty-two week low of $82.44 and a fifty-two week high of $103.39. The firm has a market capitalization of $34.22 billion, a price-to-earnings ratio of 8.28, a PEG ratio of 3.84 and a beta of 0.40. The stock's 50-day simple moving average is $96.27 and its 200-day simple moving average is $92.98.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last posted its quarterly 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. The business had revenue of $4.93 billion for the quarter, compared to the consensus estimate of $3.94 billion. Arch Capital Group had a return on equity of 16.73% and a net margin of 22.07%.During the same quarter in the previous year, the business earned $2.26 EPS. As a group, equities analysts forecast that Arch Capital Group Ltd. will post 8.42 earnings per share for the current fiscal year.

Insider Activity at Arch Capital Group

In related news, insider John M. Pasquesi sold 8,800 shares of the business's stock in a transaction on Monday, December 15th. The shares were sold at an average price of $94.17, for a total value of $828,696.00. Following the completion of the sale, the insider owned 289,556 shares of the company's stock, valued at approximately $27,267,488.52. The trade was a 2.95% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Maamoun Rajeh sold 47,430 shares of the firm's stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $96.12, for a total value of $4,558,971.60. Following the completion of the transaction, the insider owned 433,589 shares in the company, valued at approximately $41,676,574.68. This trade represents a 9.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 260,096 shares of company stock worth $24,530,685. 4.10% of the stock is owned by corporate 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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