Q2 EPS Forecast for Arch Capital Group Raised by Analyst

Key Points

• Zacks Research raised its Q2 2027 EPS estimate for Arch Capital Group to $2.42 from $2.34, signaling a slightly more optimistic view on near-term earnings.
• The firm still sees long-term earnings growth, projecting FY2027 EPS of $10.02 and FY2028 EPS of $10.92, even though those forecasts were trimmed from prior estimates.
• Arch Capital recently reported strong quarterly results with $2.50 EPS on $4.52 billion in revenue, while analysts overall remain cautious with a consensus rating of Hold and a target price of $106.32.

Arch Capital Group Ltd. (NASDAQ:ACGL - Free Report) - Analysts at Zacks Research upped their Q2 2027 earnings per share estimates for shares of Arch Capital Group in a research report issued on Tuesday, May 12th. Zacks Research analyst Team now expects that the insurance provider will earn $2.42 per share for the quarter, up from their previous forecast of $2.34. The consensus estimate for Arch Capital Group's current full-year earnings is $9.29 per share. Zacks Research also issued estimates for Arch Capital Group's Q1 2028 earnings at $2.79 EPS.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last announced its quarterly earnings data on Tuesday, March 31st. The insurance provider reported $2.50 EPS for the quarter. Arch Capital Group had a return on equity of 17.61% and a net margin of 24.64%.The business had revenue of $4.52 billion during the quarter.

Other equities research analysts also recently issued reports about the stock. Cantor Fitzgerald reissued a "neutral" rating and issued a $100.00 price objective (up from $97.00) on shares of Arch Capital Group in a research report on Tuesday, February 17th. Royal Bank Of Canada boosted their target price on shares of Arch Capital Group from $108.00 to $115.00 and gave the stock an "outperform" rating in a research note on Wednesday, February 11th. Barclays increased their target price on Arch Capital Group from $104.00 to $106.00 and gave the company an "equal weight" rating in a report on Wednesday, April 8th. UBS Group reaffirmed a "buy" rating and set a $114.00 price target (up from $113.00) on shares of Arch Capital Group in a report on Tuesday, February 17th. Finally, JPMorgan Chase & Co. lowered their price objective on Arch Capital Group from $117.00 to $110.00 and set a "neutral" rating for the company in a research report on Monday, April 20th. Eight investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $106.32.

Arch Capital Group Stock Up 0.2%

Shares of Arch Capital Group stock opened at $93.46 on Friday. Arch Capital Group has a 52-week low of $82.44 and a 52-week high of $103.39. The company has a 50 day moving average of $95.48 and a 200 day moving average of $94.60. The company has a quick ratio of 0.55, a current ratio of 0.55 and a debt-to-equity ratio of 0.15. The company has a market capitalization of $32.65 billion, a P/E ratio of 7.18, a P/E/G ratio of 5.12 and a beta of 0.35.

Institutional Investors Weigh In On Arch Capital Group

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Bridges Investment Management Inc. purchased a new position in Arch Capital Group in the 3rd quarter valued at $1,413,000. Allianz Asset Management GmbH raised its position in Arch Capital Group by 12.5% during the 3rd quarter. Allianz Asset Management GmbH now owns 192,567 shares of the insurance provider's stock worth $17,472,000 after buying an additional 21,323 shares during the last quarter. High Ground Investment Management LLP lifted its stake in shares of Arch Capital Group by 3.5% in the 3rd quarter. High Ground Investment Management LLP now owns 1,714,668 shares of the insurance provider's stock worth $155,572,000 after acquiring an additional 58,151 shares during the period. WCM Investment Management LLC boosted its holdings in shares of Arch Capital Group by 1.3% in the third quarter. WCM Investment Management LLC now owns 13,525,402 shares of the insurance provider's stock valued at $1,214,987,000 after acquiring an additional 171,693 shares in the last quarter. Finally, Cooke & Bieler LP acquired a new position in shares of Arch Capital Group during the third quarter worth about $210,856,000. 89.07% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Arch Capital Group

In other news, Director Brian S. Posner sold 3,000 shares of the firm's stock in a transaction that occurred on Wednesday, March 11th. The shares were sold at an average price of $17.11, for a total transaction of $51,330.00. Following the transaction, the director directly owned 2,000 shares in the company, valued at approximately $34,220. This trade represents a 60.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Nicolas Papadopoulo sold 21,930 shares of the company's stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $96.31, for a total transaction of $2,112,078.30. Following the completion of the sale, the chief executive officer owned 871,594 shares of the company's stock, valued at approximately $83,943,218.14. This trade represents a 2.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 32,837 shares of company stock worth $2,766,946. 3.30% of the stock is currently owned by corporate insiders.

Arch Capital Group News Summary

Here are the key news stories impacting Arch Capital Group this week:

• Positive Sentiment: Zacks Research still expects Arch Capital’s earnings to grow over time, projecting FY2027 EPS of $10.02 and FY2028 EPS of $10.92, which suggests analysts remain constructive on the company’s long-term earnings power.
• Neutral Sentiment: The firm raised its Q1 2027 EPS estimate to $2.57 from $2.55, a small upward revision that partially offsets the broader round of cuts.
• Neutral Sentiment: Analysts kept the current-year consensus EPS near $9.30, with Zacks’ FY2026 estimate at $9.29, essentially in line with Street expectations.
• Negative Sentiment: Zacks Research lowered its Q2 2026 EPS estimate to $2.40 from $2.46, Q3 2026 to $1.89 from $1.92, and Q4 2026 to $2.50 from $2.53, pointing to a slightly softer near-term earnings outlook.
• Negative Sentiment: The research firm also trimmed FY2027 EPS to $10.02 from $10.06 and FY2028 EPS to $10.92 from $11.18, adding to concerns that earnings growth may be less robust than previously expected.

Arch Capital Group Company Profile

Arch Capital Group Ltd. NASDAQ: ACGL is a Bermuda-based insurance and reinsurance holding company that underwrites a broad range of property and casualty, mortgage, and specialty risk products. The company operates through a group of underwriting subsidiaries and platforms to provide insurance, reinsurance and related risk solutions tailored to commercial, institutional and individual clients.

Arch's product mix includes treaty and facultative reinsurance, primary casualty and property insurance, mortgage insurance and other specialty lines.

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