Arch Capital Group Ltd. $ACGL Position Lessened by Orbis Allan Gray Ltd

Key Points

• Orbis Allan Gray Ltd sold 34,321 shares of Arch Capital Group Ltd during the first quarter, reducing its stake by 3.2% to 1,029,505 shares, valued at approximately $99 million.
• Several large investors have significantly increased their holdings in Arch Capital Group, with Nuveen LLC acquiring a new stake worth around $399.7 million and JPMorgan Chase & Co. boosting its stake by 30.5%.
• Analysts maintain a consensus rating of "Moderate Buy" on Arch Capital Group, with a consensus price target of $111.27, while recent earnings reports indicate strong performance exceeding expectations.

Orbis Allan Gray Ltd trimmed its holdings in Arch Capital Group Ltd. (NASDAQ:ACGL - Free Report) by 3.2% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,029,505 shares of the insurance provider's stock after selling 34,321 shares during the quarter. Orbis Allan Gray Ltd owned about 0.27% of Arch Capital Group worth $99,018,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Kovitz Investment Group Partners LLC bought a new position in Arch Capital Group during the 4th quarter valued at $221,000. Quarry LP bought a new position in Arch Capital Group during the 4th quarter valued at $58,000. Lido Advisors LLC boosted its stake in Arch Capital Group by 3.5% during the 4th quarter. Lido Advisors LLC now owns 9,985 shares of the insurance provider's stock valued at $922,000 after purchasing an additional 338 shares in the last quarter. Keel Point LLC boosted its stake in Arch Capital Group by 18.1% during the 4th quarter. Keel Point LLC now owns 2,390 shares of the insurance provider's stock valued at $221,000 after purchasing an additional 367 shares in the last quarter. Finally, Mercer Global Advisors Inc. ADV boosted its stake in Arch Capital Group by 24.8% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 38,356 shares of the insurance provider's stock valued at $3,542,000 after purchasing an additional 7,631 shares in the last quarter. 89.07% of the stock is owned by institutional investors.

Arch Capital Group Stock Down 0.2%

Shares of ACGL traded down $0.21 during mid-day trading on Tuesday, reaching $91.32. The company's stock had a trading volume of 2,096,624 shares, compared to its average volume of 1,923,707. The business has a fifty day moving average of $89.56 and a 200 day moving average of $91.24. The company has a market cap of $34.08 billion, a price-to-earnings ratio of 9.42, a price-to-earnings-growth ratio of 5.60 and a beta of 0.51. Arch Capital Group Ltd. has a 1 year low of $82.49 and a 1 year high of $116.47. The company has a quick ratio of 0.56, a current ratio of 0.56 and a debt-to-equity ratio of 0.16.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The insurance provider reported $2.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.30 by $0.28. Arch Capital Group had a return on equity of 15.33% and a net margin of 19.49%.The business had revenue of $4.35 billion during the quarter, compared to analyst estimates of $4.29 billion. During the same period last year, the company earned $2.57 earnings per share. As a group, analysts forecast that Arch Capital Group Ltd. will post 8.42 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Maamoun Rajeh sold 10,000 shares of the stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $94.15, for a total transaction of $941,500.00. Following the completion of the sale, the insider directly owned 433,589 shares in the company, valued at approximately $40,822,404.35. This trade represents a 2.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 4.10% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on ACGL. Citigroup began coverage on Arch Capital Group in a research note on Wednesday, August 13th. They set a "buy" rating and a $113.00 price target for the company. UBS Group reiterated a "buy" rating and set a $118.00 price objective (down previously from $124.00) on shares of Arch Capital Group in a research report on Monday, August 4th. Cantor Fitzgerald upgraded Arch Capital Group to a "hold" rating in a research report on Wednesday, August 13th. Keefe, Bruyette & Woods increased their price objective on Arch Capital Group from $102.00 to $103.00 and gave the company a "market perform" rating in a research report on Thursday, August 14th. Finally, Jefferies Financial Group downgraded Arch Capital Group from a "buy" rating to a "hold" rating and cut their price objective for the company from $106.00 to $100.00 in a research report on Tuesday, June 10th. Nine equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $111.27.

About Arch Capital Group

Arch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products worldwide. The company's Insurance segment offers primary and excess casualty coverages; loss sensitive primary casualty insurance programs; directors' and officers' liability, errors and omissions liability, employment practices and fiduciary liability, crime, professional indemnity, and other financial related coverages; medical professional and general liability insurance coverages; and workers' compensation and umbrella liability, as well as commercial automobile and inland marine products.