Sustainable Insight Capital Management LLC Invests $2.49 Million in Arch Capital Group Ltd. $ACGL

Key Points

• Sustainable Insight Capital Management initiated a new position in Arch Capital Group, buying 25,976 shares worth about $2.49 million in the first quarter.
• Institutional interest in ACGL remains strong, with hedge funds and other investors owning 89.07% of the company’s stock; several firms, including Arrowstreet Capital and First Trust Advisors, also increased their stakes.
• Analyst sentiment is mixed but generally constructive: the stock has a Hold consensus rating with a $109.82 price target, while recent calls from Wells Fargo and UBS were bullish and target prices were raised.

Sustainable Insight Capital Management LLC purchased a new stake in shares of Arch Capital Group Ltd. (NASDAQ:ACGL - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The fund purchased 25,976 shares of the insurance provider's stock, valued at approximately $2,493,000. Arch Capital Group comprises approximately 0.8% of Sustainable Insight Capital Management LLC's portfolio, making the stock its 29th biggest holding.

Other hedge funds have also recently modified their holdings of the company. Arrowstreet Capital Limited Partnership grew its stake in shares of Arch Capital Group by 50.6% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,910,063 shares of the insurance provider's stock valued at $183,347,000 after buying an additional 641,462 shares during the period. Bank of Nova Scotia raised its position in shares of Arch Capital Group by 12.5% during the 1st quarter. Bank of Nova Scotia now owns 271,124 shares of the insurance provider's stock valued at $26,025,000 after buying an additional 30,117 shares during the period. State of Wyoming lifted its holdings in Arch Capital Group by 43.6% in the first quarter. State of Wyoming now owns 6,455 shares of the insurance provider's stock valued at $620,000 after acquiring an additional 1,959 shares during the last quarter. Cetera Investment Advisers lifted its holdings in Arch Capital Group by 4.3% in the first quarter. Cetera Investment Advisers now owns 111,278 shares of the insurance provider's stock valued at $10,682,000 after acquiring an additional 4,560 shares during the last quarter. Finally, First Trust Advisors LP lifted its holdings in Arch Capital Group by 319.5% in the first quarter. First Trust Advisors LP now owns 2,626,148 shares of the insurance provider's stock valued at $252,084,000 after acquiring an additional 2,000,162 shares during the last quarter. Hedge funds and other institutional investors own 89.07% of the company's stock.

Insiders Place Their Bets

In other news, Director Daniel Joseph Houston acquired 5,300 shares of the company's stock in a transaction on Thursday, April 30th. The shares were bought at an average price of $94.08 per share, with a total value of $498,624.00. Following the completion of the acquisition, the director owned 9,915 shares in the company, valued at $932,803.20. This trade represents a 114.84% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Brian S. Posner sold 3,000 shares of Arch Capital Group stock in a transaction that occurred on 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. Insiders own 3.30% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the company. Wells Fargo & Company raised their target price on Arch Capital Group from $110.00 to $114.00 and gave the stock an "overweight" rating in a research note on Thursday, July 9th. UBS Group reaffirmed a "buy" rating and issued a $120.00 price target (up from $114.00) on shares of Arch Capital Group in a research note on Wednesday, July 8th. Keefe, Bruyette & Woods cut their price objective on Arch Capital Group from $102.00 to $99.00 and set a "market perform" rating for the company in a research report on Wednesday, July 8th. Weiss Ratings downgraded Arch Capital Group from a "buy (b)" rating to a "buy (b-)" rating in a research report on Monday, May 18th. Finally, Cantor Fitzgerald restated a "neutral" rating and issued a $102.00 price objective (up from $100.00) on shares of Arch Capital Group in a report on Thursday, July 9th. Eight analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $109.82.

Arch Capital Group Stock Performance

NASDAQ:ACGL opened at $103.36 on Friday. Arch Capital Group Ltd. has a 52 week low of $82.44 and a 52 week high of $105.09. The company has a fifty day simple moving average of $95.81 and a two-hundred day simple moving average of $95.81. The company has a quick ratio of 0.55, a current ratio of 0.55 and a debt-to-equity ratio of 0.15. The company has a market cap of $36.11 billion, a price-to-earnings ratio of 7.94, a price-to-earnings-growth ratio of 4.99 and a beta of 0.31.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last posted its quarterly earnings results on Tuesday, March 31st. The insurance provider reported $2.50 earnings per share (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%. As a group, equities analysts anticipate that Arch Capital Group Ltd. will post 9.34 earnings per share 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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