Morgan Stanley Lowers Bowhead Specialty (NYSE:BOW) Price Target to $34.00

Key Points

• Morgan Stanley has lowered its price target for Bowhead Specialty (NYSE:BOW) from $37.00 to $34.00, maintaining an "equal weight" rating, which suggests a potential upside of 10.93% from the previous close.
• Bowhead Specialty's recent earnings exceeded estimates with a reported $0.37 earnings per share, beating expectations by $0.01 and generating revenue of $232.36 million for the quarter.
• Insider trading activity revealed significant share sales by directors, with each selling 2,000,000 shares at an average price of $30.66, indicating a notable decrease in their stakes in the company.

Bowhead Specialty (NYSE:BOW - Get Free Report) had its price objective cut by analysts at Morgan Stanley from $37.00 to $34.00 in a research note issued to investors on Monday,Benzinga reports. The firm presently has an "equal weight" rating on the stock. Morgan Stanley's price target would indicate a potential upside of 7.06% from the company's previous close.

A number of other equities research analysts have also issued reports on the stock. Keefe, Bruyette & Woods cut their target price on shares of Bowhead Specialty from $45.00 to $42.00 and set an "outperform" rating on the stock in a research note on Tuesday, August 12th. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Bowhead Specialty in a research note on Friday, August 8th. They issued a "buy" rating on the stock. Five analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, Bowhead Specialty currently has a consensus rating of "Moderate Buy" and a consensus price target of $38.33.

Bowhead Specialty Stock Performance

Shares of Bowhead Specialty stock traded up $0.1070 during trading on Monday, reaching $31.7570. The company had a trading volume of 526,224 shares, compared to its average volume of 355,278. The company has a market cap of $1.04 billion, a price-to-earnings ratio of 21.60 and a beta of -0.69. The firm's fifty day moving average is $33.68 and its 200-day moving average is $35.89. Bowhead Specialty has a fifty-two week low of $27.07 and a fifty-two week high of $42.29.

Bowhead Specialty (NYSE:BOW - Get Free Report) last issued its earnings results on Tuesday, August 5th. The company reported $0.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.36 by $0.01. The business had revenue of $232.36 million for the quarter, compared to analyst estimates of $134.66 million. Bowhead Specialty had a net margin of 10.05% and a return on equity of 13.25%. On average, research analysts anticipate that Bowhead Specialty will post 1.36 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Gallatin Point Capital Llc sold 2,000,000 shares of the firm's stock in a transaction that occurred on Friday, August 8th. The shares were sold at an average price of $30.66, for a total transaction of $61,320,000.00. Following the completion of the sale, the director directly owned 8,968,445 shares in the company, valued at approximately $274,972,523.70. This trade represents a 18.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Matthew Botein sold 2,000,000 shares of the firm's stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $30.66, for a total transaction of $61,320,000.00. Following the sale, the director owned 8,968,445 shares of the company's stock, valued at $274,972,523.70. The trade was a 18.23% decrease in their ownership of the stock. The disclosure for this sale can be found here.

Institutional Investors Weigh In On Bowhead Specialty

Several hedge funds have recently made changes to their positions in the company. State of Wyoming purchased a new stake in shares of Bowhead Specialty in the 2nd quarter valued at approximately $228,000. Tower Research Capital LLC TRC lifted its position in shares of Bowhead Specialty by 99.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,926 shares of the company's stock valued at $72,000 after acquiring an additional 958 shares in the last quarter. American Family Investments Inc. lifted its position in shares of Bowhead Specialty by 6.9% in the 2nd quarter. American Family Investments Inc. now owns 5,023,778 shares of the company's stock valued at $188,542,000 after acquiring an additional 323,017 shares in the last quarter. Engineers Gate Manager LP lifted its position in shares of Bowhead Specialty by 66.0% in the 2nd quarter. Engineers Gate Manager LP now owns 46,839 shares of the company's stock valued at $1,758,000 after acquiring an additional 18,619 shares in the last quarter. Finally, BNP Paribas Financial Markets lifted its position in shares of Bowhead Specialty by 32.7% in the 2nd quarter. BNP Paribas Financial Markets now owns 68,506 shares of the company's stock valued at $2,571,000 after acquiring an additional 16,900 shares in the last quarter.

Bowhead Specialty Company Profile

Bowhead Specialty Holdings Inc provides specialty property and casualty insurance products in the United States. It underwrites casualty insurance solutions for risks in the construction, distribution, heavy manufacturing, real estate, and hospitality segments; professional liability insurance solutions for financial institutions, private and public directors and officers liability insurance, errors and omissions liability insurance, and cyber segments; and healthcare solutions for hospitals, senior care providers, managed care organizations, miscellaneous medical facilities, and healthcare management liability segments.