Bowhead Specialty (NYSE:BOW) Given New $34.00 Price Target at Morgan Stanley

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 target price decreased by Morgan Stanley from $37.00 to $34.00 in a note issued to investors on Monday,Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Morgan Stanley's price target would indicate a potential upside of 9.96% from the stock's current price.

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

Bowhead Specialty Stock Performance

NYSE:BOW traded up $0.16 during mid-day trading on Monday, hitting $30.92. 278,026 shares of the company's stock traded hands, compared to its average volume of 342,962. The firm's 50 day simple moving average is $33.86 and its 200 day simple moving average is $35.91. Bowhead Specialty has a 1 year low of $27.07 and a 1 year high of $42.29. The company has a market cap of $1.01 billion, a PE ratio of 21.03 and a beta of -0.69.

Bowhead Specialty (NYSE:BOW - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The company reported $0.37 EPS for the quarter, topping analysts' consensus estimates of $0.36 by $0.01. The business had revenue of $232.36 million during the quarter, compared to the consensus estimate 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 expect that Bowhead Specialty will post 1.36 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Bowhead Specialty news, Director Gallatin Point Capital Llc sold 2,000,000 shares of Bowhead Specialty 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 transaction, the director directly 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 sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Matthew Botein sold 2,000,000 shares of the business's stock in a transaction 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 transaction, the director directly owned 8,968,445 shares in the company, valued at approximately $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 Inflows and Outflows

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

About Bowhead Specialty

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.