Keefe, Bruyette & Woods Lowers Arch Capital Group (NASDAQ:ACGL) Price Target to $102.00

Key Points

• Keefe, Bruyette & Woods cut its price target for Arch Capital Group to $102 (from $105) and kept a "market perform" rating, a target that implies roughly an 8.8% upside from the current share price.
• Analyst sentiment is mixed: the consensus rating is Hold with an average price target of $106.32 (8 Buys, 8 Holds, 1 Sell), while notable outliers include RBC raising its target to $115 (Outperform) and Goldman Sachs maintaining a Sell with a $93 target.
• Shares trade near $93.75 with a PE of 7.2 and a 12‑month range of $82.44–$103.39, and insiders sold about 78,267 shares (~$7.29M) in the last quarter (insiders own 3.3%).

Arch Capital Group (NASDAQ:ACGL - Get Free Report) had its price target decreased by equities researchers at Keefe, Bruyette & Woods from $105.00 to $102.00 in a note issued to investors on Tuesday,Benzinga reports. The brokerage currently has a "market perform" rating on the insurance provider's stock. Keefe, Bruyette & Woods' price objective would indicate a potential upside of 8.80% from the stock's current price.

ACGL has been the topic of a number of other research reports. Mizuho cut their price target on shares of Arch Capital Group from $102.00 to $101.00 and set a "neutral" rating on the stock in a research note on Tuesday. Royal Bank Of Canada upped their price target on shares of Arch Capital Group from $108.00 to $115.00 and gave the company an "outperform" rating in a research note on Wednesday, February 11th. The Goldman Sachs Group restated a "sell" rating and set a $93.00 price target (up from $84.00) on shares of Arch Capital Group in a research note on Wednesday, January 7th. Wells Fargo & Company upped their price target on shares of Arch Capital Group from $109.00 to $110.00 and gave the company an "overweight" rating in a research note on Thursday, April 30th. Finally, Barclays upped their price target on shares of Arch Capital Group from $104.00 to $106.00 and gave the company an "equal weight" rating in a research note on Wednesday, April 8th. Eight analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $106.32.

Arch Capital Group Stock Up 0.1%

Shares of NASDAQ ACGL traded up $0.10 during trading hours on Tuesday, hitting $93.75. 1,023,102 shares of the stock were exchanged, compared to its average volume of 2,031,749. The company has a quick ratio of 0.53, a current ratio of 0.55 and a debt-to-equity ratio of 0.15. The company has a market cap of $33.40 billion, a PE ratio of 7.20, a PEG ratio of 5.12 and a beta of 0.35. The firm has a fifty day moving average price of $96.37 and a 200-day moving average price of $94.23. Arch Capital Group has a 12 month low of $82.44 and a 12 month high of $103.39.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last posted its quarterly earnings data on Tuesday, March 31st. The insurance provider reported $2.50 EPS for the quarter. The firm had revenue of $4.52 billion during the quarter. Arch Capital Group had a net margin of 24.64% and a return on equity of 17.61%. On average, sell-side analysts expect that Arch Capital Group will post 9.35 EPS for the current year.

Insider Activity at Arch Capital Group

In related news, insider Maamoun Rajeh sold 47,430 shares of the firm's stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $96.12, for a total transaction of $4,558,971.60. Following the sale, 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Brian S. Posner sold 3,000 shares of the firm's stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $17.11, for a total transaction of $51,330.00. Following the sale, the director owned 2,000 shares in the company, valued at approximately $34,220. This represents a 60.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 78,267 shares of company stock valued at $7,291,637 in the last quarter. 3.30% of the stock is currently owned by insiders.

Institutional Trading of Arch Capital Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Daymark Wealth Partners LLC grew its position in Arch Capital Group by 3.4% during the fourth quarter. Daymark Wealth Partners LLC now owns 3,211 shares of the insurance provider's stock valued at $308,000 after buying an additional 106 shares during the period. Keel Point LLC grew its position in shares of Arch Capital Group by 4.6% in the third quarter. Keel Point LLC now owns 2,524 shares of the insurance provider's stock valued at $229,000 after purchasing an additional 112 shares during the period. Legacy Advisors LLC grew its position in shares of Arch Capital Group by 1.2% in the fourth quarter. Legacy Advisors LLC now owns 9,551 shares of the insurance provider's stock valued at $916,000 after purchasing an additional 112 shares during the period. V Square Quantitative Management LLC grew its position in shares of Arch Capital Group by 1.3% in the first quarter. V Square Quantitative Management LLC now owns 9,453 shares of the insurance provider's stock valued at $907,000 after purchasing an additional 123 shares during the period. Finally, Compound Planning Inc. grew its position in shares of Arch Capital Group by 5.0% in the third quarter. Compound Planning Inc. now owns 2,644 shares of the insurance provider's stock valued at $240,000 after purchasing an additional 127 shares during the period. Institutional investors and hedge funds own 89.07% of the company's stock.

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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