Morgan Stanley Issues Pessimistic Forecast for Bowhead Specialty (NYSE:BOW) Stock Price

Key Points

• Morgan Stanley has lowered its target price for Bowhead Specialty (NYSE:BOW) from $34.00 to $31.00, maintaining an "equal weight" rating, which suggests a potential upside of 19.02% from the previous close.
• Despite the pessimistic outlook from Morgan Stanley, five research analysts have rated Bowhead Specialty with a Buy rating, while the average consensus rating stands at "Moderate Buy" with a price target of $36.00.
• Bowhead Specialty recently reported earnings of $0.37 EPS, exceeding estimates, and had a revenue of $232.36 million for the quarter ending August 5th.

Bowhead Specialty (NYSE:BOW - Get Free Report) had its target price dropped by Morgan Stanley from $34.00 to $31.00 in a report released on Tuesday,Benzinga reports. The firm currently has an "equal weight" rating on the stock. Morgan Stanley's target price would indicate a potential upside of 19.02% from the stock's previous close.

Other equities analysts have also issued research reports about the stock. Deutsche Bank Aktiengesellschaft began coverage on shares of Bowhead Specialty in a report on Friday, August 8th. They set a "buy" rating on the stock. Weiss Ratings restated a "hold (c)" rating on shares of Bowhead Specialty in a report on Saturday, September 27th. Piper Sandler dropped their target price on shares of Bowhead Specialty from $38.00 to $33.00 and set an "overweight" rating on the stock in a report on Thursday. Zacks Research upgraded shares of Bowhead Specialty from a "strong sell" rating to a "hold" rating in a report on Friday, August 15th. Finally, Keefe, Bruyette & Woods dropped their target price on shares of Bowhead Specialty from $45.00 to $42.00 and set an "outperform" rating on the stock in a report on Tuesday, August 12th. Five research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $36.00.

Bowhead Specialty Stock Performance

Shares of NYSE:BOW traded down $0.21 during mid-day trading on Tuesday, reaching $26.05. 35,561 shares of the company's stock were exchanged, compared to its average volume of 258,301. The firm has a market capitalization of $853.81 million, a price-to-earnings ratio of 17.68 and a beta of -0.88. The business's fifty day moving average price is $29.78 and its 200-day moving average price is $34.82. Bowhead Specialty has a twelve month low of $23.70 and a twelve month high of $42.29.

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 company 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%. Analysts predict that Bowhead Specialty will post 1.36 EPS for the current fiscal year.

Insider Activity

In other news, Director Gallatin Point Capital Llc sold 2,000,000 shares of the company's stock in a transaction dated 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 owned 8,968,445 shares in the company, valued at approximately $274,972,523.70. This represents a 18.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Matthew Botein sold 2,000,000 shares of the company's stock in a transaction dated 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 owned 8,968,445 shares in the company, valued at $274,972,523.70. This represents a 18.23% decrease in their position. The disclosure for this sale can be found here.

Institutional Investors Weigh In On Bowhead Specialty

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Tower Research Capital LLC TRC increased its position in shares of Bowhead Specialty by 99.0% during the second quarter. Tower Research Capital LLC TRC now owns 1,926 shares of the company's stock worth $72,000 after acquiring an additional 958 shares in the last quarter. Police & Firemen s Retirement System of New Jersey grew its position in shares of Bowhead Specialty by 38.2% during the 2nd quarter. Police & Firemen s Retirement System of New Jersey now owns 3,575 shares of the company's stock valued at $134,000 after acquiring an additional 989 shares during the period. SBI Securities Co. Ltd. bought a new position in shares of Bowhead Specialty during the 1st quarter valued at approximately $44,000. Zurcher Kantonalbank Zurich Cantonalbank grew its position in shares of Bowhead Specialty by 17.5% during the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 7,400 shares of the company's stock valued at $301,000 after acquiring an additional 1,100 shares during the period. Finally, Jump Financial LLC grew its position in shares of Bowhead Specialty by 17.1% during the 1st quarter. Jump Financial LLC now owns 9,050 shares of the company's stock valued at $368,000 after acquiring an additional 1,322 shares during the period.

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.

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