Davis Asset Management L.P. Makes New $63.09 Million Investment in Arch Capital Group Ltd. $ACGL

Key Points

• Davis Asset Management acquired 650,000 Arch Capital shares worth approximately $63.1 million, making ACGL its 21st-largest holding and representing about 1.6% of its portfolio.
• Institutional ownership stands at 89.07%, with several other funds increasing their positions. Analysts have a consensus “Hold” rating, with an average price target of $111.11.
• Arch Capital’s latest quarterly results exceeded expectations, reporting $2.56 in EPS versus $2.47 expected and $4.67 billion in revenue versus $4.36 billion forecast.

Davis Asset Management L.P. acquired a new stake in shares of Arch Capital Group Ltd. (NASDAQ:ACGL - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor acquired 650,000 shares of the insurance provider's stock, valued at approximately $63,089,000. Arch Capital Group comprises about 1.6% of Davis Asset Management L.P.'s portfolio, making the stock its 21st largest holding. Davis Asset Management L.P. owned about 0.19% of Arch Capital Group as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently modified their holdings of the company. 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 valued at $282,405,000 after purchasing an additional 121,090 shares during the period. National Pension Service lifted its position in shares of 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 purchasing an additional 53,661 shares during the period. Oxbow Advisors LLC boosted its stake in shares of Arch Capital Group by 83.7% during the 4th quarter. Oxbow Advisors LLC now owns 84,290 shares of the insurance provider's stock valued at $8,085,000 after purchasing an additional 38,402 shares in the last quarter. Assenagon Asset Management S.A. boosted its stake in shares of Arch Capital Group by 295.6% during the 2nd quarter. Assenagon Asset Management S.A. now owns 50,073 shares of the insurance provider's stock valued at $4,860,000 after purchasing an additional 37,416 shares in the last quarter. Finally, Schwartz Investment Counsel Inc. bought a new stake in shares of Arch Capital Group during the 4th quarter valued at about $9,592,000. 89.07% of the stock is owned by institutional investors.

Analyst Ratings Changes

ACGL has been the subject of a number of research reports. Keefe, Bruyette & Woods decreased their price target on shares of Arch Capital Group from $102.00 to $99.00 and set a "market perform" rating for the company in a research note on Wednesday, July 8th. Citigroup reaffirmed a "market outperform" rating on shares of Arch Capital Group in a research report on Wednesday, July 29th. Atlantic Securities set a $126.00 target price on Arch Capital Group in a report on Wednesday, July 15th. Wells Fargo & Company increased their target price on Arch Capital Group from $114.00 to $117.00 and gave the stock an "overweight" rating in a research report on Thursday, July 30th. Finally, Royal Bank Of Canada restated an "outperform" rating and issued a $120.00 target price (up from $115.00) on shares of Arch Capital Group in a research note on Thursday, July 30th. Seven analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $111.11.

Insider Transactions at Arch Capital Group

In other Arch Capital Group news, Director Brian S. Posner sold 3,000 shares of the firm's stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $19.66, for a total transaction of $58,980.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Francois Morin sold 11,010 shares of Arch Capital Group stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $99.32, for a total transaction of $1,093,513.20. Following the transaction, the chief financial officer owned 184,826 shares of the company's stock, valued at $18,356,918.32. The trade was a 5.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 3.30% of the stock is currently owned by corporate insiders.

Arch Capital Group Stock Up 0.1%

NASDAQ:ACGL opened at $99.39 on Friday. The company has a debt-to-equity ratio of 0.23, a current ratio of 0.57 and a quick ratio of 0.57. The firm's 50-day moving average price is $98.93 and its 200-day moving average price is $96.75. The company has a market capitalization of $33.91 billion, a PE ratio of 7.77, a P/E/G ratio of 4.89 and a beta of 0.31. Arch Capital Group Ltd. has a 1-year low of $82.44 and a 1-year high of $107.08.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The insurance provider reported $2.56 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.47 by $0.09. Arch Capital Group had a net margin of 24.40% and a return on equity of 17.06%. The company had revenue of $4.67 billion during the quarter, compared to analysts' expectations of $4.36 billion. During the same period last year, the company posted $2.58 EPS. On average, equities analysts predict that Arch Capital Group Ltd. will post 9.45 EPS for the current fiscal year.

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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