Accelerant (NYSE:ARX) Stock Price Breaks Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Accelerant shares broke above their 200-day moving average, trading near $19.76 versus the $15.45 average, with about 1.24 million shares changing hands.
• Analyst sentiment remains cautious: the consensus rating is “Hold” with an average price target of $17.98, below the current share price; several firms recently downgraded the stock.
• The company exceeded quarterly EPS expectations, reporting $0.32 versus a $0.16 consensus estimate, but insiders sold roughly 742,000 shares worth $10.1 million over the past 90 days.

Accelerant Holdings (NYSE:ARX - Get Free Report)'s share price crossed above its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $15.45 and traded as high as $19.78. Accelerant shares last traded at $19.7550, with a volume of 1,241,946 shares.

Analysts Set New Price Targets

Several equities research analysts have recently commented on ARX shares. Raymond James Financial downgraded shares of Accelerant from a "market perform" rating to an "underperform" rating in a research note on Wednesday, September 23rd. Royal Bank Of Canada downgraded shares of Accelerant from a "moderate buy" rating to a "hold" rating and set a $20.25 price target for the company. in a report on Friday, August 14th. William Blair lowered shares of Accelerant from an "outperform" rating to a "market perform" rating in a research report on Thursday, August 13th. Morgan Stanley reduced their price objective on Accelerant from $16.00 to $14.00 and set an "equal weight" rating on the stock in a research note on Monday, July 6th. Finally, Wells Fargo & Company lowered their target price on Accelerant from $17.00 to $16.00 and set an "overweight" rating for the company in a research note on Thursday, July 9th. Three equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $17.98.

Accelerant Stock Up 0.0%

The firm's 50-day simple moving average is $18.40 and its 200 day simple moving average is $15.45. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.53 and a current ratio of 1.53. The company has a market cap of $4.29 billion, a P/E ratio of -2.97 and a beta of 0.08.

Accelerant (NYSE:ARX - Get Free Report) last posted its quarterly earnings results on Thursday, August 13th. The company reported $0.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.16. Accelerant had a positive return on equity of 42.79% and a negative net margin of 113.08%.The business had revenue of $303.90 million for the quarter. On average, research analysts forecast that Accelerant Holdings will post 0.9 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Accelerant news, CEO Jeffrey Radke sold 95,223 shares of the firm's stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $14.60, for a total transaction of $1,390,255.80. Following the transaction, the chief executive officer owned 27,751,939 shares in the company, valued at approximately $405,178,309.40. This trade represents a 0.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Francis Oneill sold 110,467 shares of the business's stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $14.63, for a total value of $1,616,132.21. Following the transaction, the insider owned 6,626,772 shares of the company's stock, valued at $96,949,674.36. The trade was a 1.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 741,771 shares of company stock worth $10,060,096 in the last ninety days. 66.59% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Azora Capital LP grew its holdings in Accelerant by 288.9% during the fourth quarter. Azora Capital LP now owns 2,439,094 shares of the company's stock valued at $39,879,000 after purchasing an additional 1,811,976 shares during the period. Renaissance Technologies LLC raised its holdings in Accelerant by 280.5% in the first quarter. Renaissance Technologies LLC now owns 276,600 shares of the company's stock worth $3,695,000 after purchasing an additional 203,900 shares during the period. Militia Capital Management LLC bought a new position in shares of Accelerant during the first quarter worth $2,004,000. Engineers Gate Manager LP boosted its position in shares of Accelerant by 123.5% during the second quarter. Engineers Gate Manager LP now owns 98,354 shares of the company's stock worth $1,153,000 after purchasing an additional 54,338 shares in the last quarter. Finally, Sei Investments Co. boosted its position in shares of Accelerant by 95.1% during the first quarter. Sei Investments Co. now owns 73,935 shares of the company's stock worth $988,000 after purchasing an additional 36,033 shares in the last quarter.

Accelerant Company Profile

Accelerant Holdings is a global specialty insurance platform that connects managing general agents (MGAs) with insurance capacity providers. Through its risk exchange, the company supports the development, underwriting and distribution of specialty insurance products across niche and complex risks.

Accelerant provides participating MGAs with access to underwriting capacity, data and analytics, technology, and other operational resources. Its model is designed to help specialty insurance businesses expand their offerings while giving capacity providers access to a diversified portfolio of insurance risks.

Founded in 2018, Accelerant serves insurance professionals across markets including North America, the United Kingdom, Europe and Australia.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.