Madison Asset Management LLC Has $415.57 Million Stake in Arch Capital Group Ltd. $ACGL

Key Points

• Madison Asset Management trimmed its Arch Capital Group stake by 8.0% in the fourth quarter, but the insurer remains its largest holding at 4.8% of the portfolio. The firm still owned 4.33 million shares valued at about $415.6 million.
• Arch Capital Group’s stock was trading around $94.31, near its 50-day and 200-day moving averages, with a market value of about $32.95 billion. The company also reported strong recent results, including $2.50 EPS and $4.52 billion in quarterly revenue.
• Analyst sentiment on ACGL is mixed but generally cautious: the stock carries an average Hold rating and a consensus price target of $106.32. Recent insider activity included a director purchase and another director sale, while hedge funds continue to own the vast majority of shares.

Madison Asset Management LLC lowered its stake in Arch Capital Group Ltd. (NASDAQ:ACGL - Free Report) by 8.0% during the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 4,332,431 shares of the insurance provider's stock after selling 375,516 shares during the quarter. Arch Capital Group comprises 4.8% of Madison Asset Management LLC's portfolio, making the stock its biggest holding. Madison Asset Management LLC owned 1.19% of Arch Capital Group worth $415,567,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also recently made changes to their positions in ACGL. World Investment Advisors raised its stake in Arch Capital Group by 19.8% during the 4th quarter. World Investment Advisors now owns 6,930 shares of the insurance provider's stock worth $637,000 after acquiring an additional 1,145 shares during the period. Schwartz Investment Counsel Inc. purchased a new stake in shares of Arch Capital Group in the fourth quarter worth $9,592,000. Drive Wealth Management LLC purchased a new stake in shares of Arch Capital Group in the fourth quarter worth $247,000. Pure Financial Advisors LLC bought a new position in Arch Capital Group in the 4th quarter worth $207,000. Finally, Bryn Mawr Trust Advisors LLC boosted its holdings in Arch Capital Group by 11.3% in the 4th quarter. Bryn Mawr Trust Advisors LLC now owns 2,799 shares of the insurance provider's stock worth $268,000 after buying an additional 285 shares during the period. 89.07% of the stock is owned by hedge funds and other institutional investors.

Arch Capital Group Price Performance

NASDAQ:ACGL opened at $94.31 on Wednesday. The business's 50-day moving average is $95.77 and its 200 day moving average is $94.52. Arch Capital Group Ltd. has a 12 month low of $82.44 and a 12 month high of $103.39. The company has a market capitalization of $32.95 billion, a P/E ratio of 7.24, a P/E/G ratio of 5.15 and a beta of 0.35. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 0.15.

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

Insider Activity

In other news, Director Daniel Joseph Houston acquired 5,300 shares of the firm's stock in a transaction on Thursday, April 30th. The stock was acquired at an average price of $94.08 per share, with a total value of $498,624.00. Following the completion of the purchase, the director directly owned 9,915 shares in the company, valued at approximately $932,803.20. This trade represents a 114.84% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Brian S. Posner sold 2,000 shares of the company's stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $17.14, for a total value of $34,280.00. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 32,837 shares of company stock valued at $2,766,946. Company insiders own 3.30% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have commented on ACGL. UBS Group reissued a "buy" rating and set a $114.00 price target (up from $113.00) on shares of Arch Capital Group in a report on Tuesday, February 17th. Morgan Stanley set a $105.00 target price on Arch Capital Group in a research note on Friday, May 1st. JPMorgan Chase & Co. lowered their price target on Arch Capital Group from $117.00 to $110.00 and set a "neutral" rating on the stock in a report on Monday, April 20th. Cantor Fitzgerald restated a "neutral" rating and issued a $100.00 price target (up from $97.00) on shares of Arch Capital Group in a research note on Tuesday, February 17th. Finally, Mizuho reduced their price objective on shares of Arch Capital Group from $102.00 to $101.00 and set a "neutral" rating on the stock in a research report on Tuesday, May 5th. Eight equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $106.32.

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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