Arch Capital Group (NASDAQ:ACGL) Reaches New 52-Week High Following Analyst Upgrade

Key Points

• Arch Capital Group shares reached a new 52-week high after Wells Fargo raised its price target from $107 to $119 and maintained an overweight rating.
• Analyst sentiment is mixed but generally constructive: seven analysts rate the stock a Buy, eight Hold, and one Sell, with a consensus price target of $111.
• Arch reported quarterly EPS of $2.67, beating estimates of $2.31, while revenue of $4.66 billion exceeded the $4.06 billion consensus forecast.

Shares of Arch Capital Group Ltd. (NASDAQ:ACGL - Get Free Report) hit a new 52-week high on Monday after Wells Fargo & Company raised their price target on the stock from $107.00 to $119.00. Wells Fargo & Company currently has an overweight rating on the stock. Arch Capital Group traded as high as $107.18 and last traded at $106.8220, with a volume of 42,099 shares changing hands. The stock had previously closed at $106.36.

A number of other research analysts have also commented on ACGL. Weiss Ratings upgraded Arch Capital Group from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, October 9th. Royal Bank Of Canada reissued an "outperform" rating and issued a $120.00 price objective (up from $115.00) on shares of Arch Capital Group in a research report on Thursday, July 30th. Atlantic Securities set a $126.00 price objective on shares of Arch Capital Group in a research note on Wednesday, July 15th. Mizuho set a $100.00 target price on shares of Arch Capital Group and gave the stock a "neutral" rating in a research report on Wednesday, September 16th. Finally, Cantor Fitzgerald boosted their target price on shares of Arch Capital Group from $105.00 to $111.00 and gave the stock a "neutral" rating in a research report on Monday. Seven research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Arch Capital Group has an average rating of "Hold" and a consensus target price of $111.00.

Insider Activity at Arch Capital Group

In other news, CFO Francois Morin sold 11,010 shares of Arch Capital Group stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $99.32, for a total transaction of $1,093,513.20. Following the sale, the chief financial officer owned 184,826 shares of the company's stock, valued at approximately $18,356,918.32. This trade represents a 5.62% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 3.30% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of ACGL. Horizons Wealth Management bought a new stake in Arch Capital Group in the 3rd quarter valued at $25,000. Torren Management LLC boosted its position in shares of Arch Capital Group by 66.9% during the 2nd quarter. Torren Management LLC now owns 292 shares of the insurance provider's stock valued at $28,000 after acquiring an additional 117 shares in the last quarter. Continuum Advisory LLC acquired a new stake in shares of Arch Capital Group during the 2nd quarter valued at about $46,000. Provenance Wealth Advisors LLC bought a new stake in Arch Capital Group in the third quarter valued at about $55,000. Finally, Allied Private Wealth LLC acquired a new position in Arch Capital Group in the second quarter worth about $69,000. 89.07% of the stock is owned by institutional investors.

Arch Capital Group Price Performance

The company has a quick ratio of 0.57, a current ratio of 0.56 and a debt-to-equity ratio of 0.21. The stock has a market cap of $36.48 billion, a price-to-earnings ratio of 8.74, a price-to-earnings-growth ratio of 3.54 and a beta of 0.22. The company's 50-day moving average is $97.94 and its 200-day moving average is $96.77.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last released its quarterly earnings data on Tuesday, October 27th. The insurance provider reported $2.67 earnings per share for the quarter, beating the consensus estimate of $2.31 by $0.36. The company had revenue of $4.66 billion for the quarter, compared to analyst estimates of $4.06 billion. Arch Capital Group had a return on equity of 16.62% and a net margin of 23.31%. During the same period in the prior year, the company posted $2.77 EPS. Equities research analysts expect that Arch Capital Group Ltd. will post 10.02 earnings per share for the current fiscal year.

Arch Capital Group Company Profile

Arch Capital Group Ltd. is a Bermuda-based insurance, reinsurance and mortgage insurance company whose shares trade on the Nasdaq under the symbol ACGL. The company was established in 1995 and has developed into a global provider of specialty risk-management products and services.

Through its insurance operations, Arch offers property, casualty, specialty, and accident and health coverage to businesses and other policyholders. Its reinsurance operations provide coverage and risk-transfer solutions to insurance companies across a range of property and casualty lines.

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