Morgan Stanley Lowers Bowhead Specialty (NYSE:BOW) Price Target to $25.00

Key Points

• Morgan Stanley cut its price target on Bowhead Specialty to $25.00 (from $27.00) while keeping an "equal weight" rating, implying roughly a 12.1% upside from the current share price.
• Analyst views remain mixed: the MarketBeat consensus target is $32.67 with one Strong Buy, four Buy and four Hold ratings, and recent diverging moves from firms like Piper Sandler (raised to $32, overweight) and RBC (cut to $30, outperform).
• Shares traded around $22.30, below the consensus target, and the company recently beat quarterly EPS and revenue estimates; key metrics include a P/E of 14.03 and a market cap of about $732 million.

Bowhead Specialty (NYSE:BOW - Get Free Report) had its price target reduced by research analysts at Morgan Stanley from $27.00 to $25.00 in a report issued on Monday,Benzinga reports. The firm presently has an "equal weight" rating on the stock. Morgan Stanley's price objective would suggest a potential upside of 12.11% from the company's current price.

A number of other analysts have also recently commented on the stock. Weiss Ratings reissued a "hold (c-)" rating on shares of Bowhead Specialty in a research note on Friday, March 27th. Piper Sandler lifted their price objective on Bowhead Specialty from $30.00 to $32.00 and gave the stock an "overweight" rating in a report on Monday, December 22nd. Keefe, Bruyette & Woods upgraded Bowhead Specialty from a "moderate buy" rating to a "strong-buy" rating in a research note on Monday, March 16th. Royal Bank Of Canada reduced their target price on Bowhead Specialty from $33.00 to $30.00 and set an "outperform" rating for the company in a report on Wednesday, February 25th. Finally, Zacks Research upgraded Bowhead Specialty from a "strong sell" rating to a "hold" rating in a research report on Tuesday, February 24th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $32.67.

Bowhead Specialty Price Performance

Shares of BOW stock traded down $0.09 during trading hours on Monday, hitting $22.30. 8,549 shares of the company's stock were exchanged, compared to its average volume of 215,151. Bowhead Specialty has a fifty-two week low of $21.21 and a fifty-two week high of $41.98. The firm has a market cap of $732.33 million, a P/E ratio of 14.03, a P/E/G ratio of 0.68 and a beta of -0.49. The company has a quick ratio of 0.52, a current ratio of 0.52 and a debt-to-equity ratio of 0.33. The firm has a 50 day moving average of $23.81 and a two-hundred day moving average of $25.53.

Bowhead Specialty (NYSE:BOW - Get Free Report) last released its quarterly earnings results on Tuesday, February 24th. The company reported $0.47 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.45 by $0.02. The firm had revenue of $151.68 million for the quarter, compared to analysts' expectations of $145.99 million. Bowhead Specialty had a net margin of 9.75% and a return on equity of 13.27%. Sell-side analysts forecast that Bowhead Specialty will post 1.36 EPS for the current year.

Institutional Trading of Bowhead Specialty

Several institutional investors have recently made changes to their positions in BOW. American Century Companies Inc. grew its position in Bowhead Specialty by 73.3% in the third quarter. American Century Companies Inc. now owns 1,412,408 shares of the company's stock worth $38,192,000 after acquiring an additional 597,191 shares during the period. Victory Capital Management Inc. raised its position in Bowhead Specialty by 54.3% in the third quarter. Victory Capital Management Inc. now owns 1,525,285 shares of the company's stock valued at $41,244,000 after purchasing an additional 536,817 shares during the period. Polar Capital Holdings Plc lifted its stake in shares of Bowhead Specialty by 77.6% in the 4th quarter. Polar Capital Holdings Plc now owns 1,225,000 shares of the company's stock valued at $34,962,000 after purchasing an additional 535,065 shares during the last quarter. Vanguard Group Inc. lifted its stake in shares of Bowhead Specialty by 36.7% in the 3rd quarter. Vanguard Group Inc. now owns 1,506,887 shares of the company's stock valued at $40,746,000 after purchasing an additional 404,199 shares during the last quarter. Finally, Gillson Capital LP purchased a new position in shares of Bowhead Specialty during the 4th quarter worth $11,317,000.

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.

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