Zacks Research Has Bearish Estimate for ACGL FY2026 Earnings

Key Points

• Zacks Research has reduced its FY2026 earnings estimates for Arch Capital Group to $9.33 per share, down from an earlier forecast of $9.43.
• Analyst ratings for Arch Capital Group are mixed, with nine analysts rating the stock as a "Buy" and eight as a "Hold," resulting in a consensus rating of "Moderate Buy" and a price target of $111.27.
• Arch Capital Group reported a quarterly EPS of $2.58, exceeding the consensus estimate of $2.30, with a revenue of $4.35 billion during the same period.

Arch Capital Group Ltd. (NASDAQ:ACGL - Free Report) - Zacks Research cut their FY2026 EPS estimates for Arch Capital Group in a research report issued on Tuesday, September 16th. Zacks Research analyst Team now anticipates that the insurance provider will earn $9.33 per share for the year, down from their previous estimate of $9.43. The consensus estimate for Arch Capital Group's current full-year earnings is $8.42 per share. Zacks Research also issued estimates for Arch Capital Group's Q4 2026 earnings at $2.21 EPS and FY2027 earnings at $9.94 EPS.

A number of other analysts have also recently weighed in on the company. Keefe, Bruyette & Woods increased their price objective on Arch Capital Group from $102.00 to $103.00 and gave the stock a "market perform" rating in a research report on Thursday, August 14th. Wolfe Research started coverage on Arch Capital Group in a research report on Monday, September 15th. They issued a "peer perform" rating for the company. Cowen reaffirmed a "buy" rating on shares of Arch Capital Group in a research note on Monday, August 4th. Jefferies Financial Group cut shares of Arch Capital Group from a "buy" rating to a "hold" rating and decreased their price objective for the stock from $106.00 to $100.00 in a report on Tuesday, June 10th. Finally, Cantor Fitzgerald raised shares of Arch Capital Group to a "hold" rating in a research report on Wednesday, August 13th. Eight investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $109.36.

Arch Capital Group Stock Performance

Shares of NASDAQ:ACGL traded up $0.21 during trading on Thursday, hitting $88.40. The stock had a trading volume of 4,190,225 shares, compared to its average volume of 1,829,925. The stock has a market capitalization of $32.99 billion, a price-to-earnings ratio of 9.12, a price-to-earnings-growth ratio of 5.41 and a beta of 0.51. Arch Capital Group has a 12-month low of $82.49 and a 12-month high of $116.47. The stock has a 50-day simple moving average of $89.78 and a two-hundred day simple moving average of $91.24. The company has a quick ratio of 0.56, a current ratio of 0.56 and a debt-to-equity ratio of 0.16.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last posted its quarterly earnings results on Tuesday, July 29th. The insurance provider reported $2.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.30 by $0.28. Arch Capital Group had a return on equity of 15.33% and a net margin of 19.49%.The firm had revenue of $4.35 billion during the quarter, compared to analyst estimates of $4.29 billion. During the same quarter in the previous year, the firm earned $2.57 EPS.

Insider Activity

In other news, insider Maamoun Rajeh sold 10,000 shares of the firm's stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $94.15, for a total transaction of $941,500.00. Following the sale, the insider owned 433,589 shares of the company's stock, valued at $40,822,404.35. This trade represents a 2.25% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 4.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Mirae Asset Global Investments Co. Ltd. grew its holdings in Arch Capital Group by 14.1% during the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 51,804 shares of the insurance provider's stock worth $4,924,000 after acquiring an additional 6,406 shares during the period. DAVENPORT & Co LLC purchased a new stake in Arch Capital Group during the first quarter worth $251,000. D.A. Davidson & CO. boosted its position in Arch Capital Group by 10.9% during the first quarter. D.A. Davidson & CO. now owns 45,552 shares of the insurance provider's stock worth $4,381,000 after purchasing an additional 4,460 shares in the last quarter. Crossmark Global Holdings Inc. boosted its position in Arch Capital Group by 24.7% during the first quarter. Crossmark Global Holdings Inc. now owns 37,625 shares of the insurance provider's stock worth $3,619,000 after purchasing an additional 7,448 shares in the last quarter. Finally, World Investment Advisors lifted its position in shares of Arch Capital Group by 114.1% in the first quarter. World Investment Advisors now owns 6,321 shares of the insurance provider's stock valued at $608,000 after acquiring an additional 3,369 shares in the last quarter. Institutional investors and hedge funds own 89.07% of the company's stock.

About Arch Capital Group

Arch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products worldwide. The company's Insurance segment offers primary and excess casualty coverages; loss sensitive primary casualty insurance programs; directors' and officers' liability, errors and omissions liability, employment practices and fiduciary liability, crime, professional indemnity, and other financial related coverages; medical professional and general liability insurance coverages; and workers' compensation and umbrella liability, as well as commercial automobile and inland marine products.