Zacks Research Has Bearish Estimate for ACGL Q1 Earnings

Key Points

• Zacks Research trimmed its Q1 2028 EPS estimate for Arch Capital Group from $2.78 to $2.76 and projects FY2028 EPS of $11.18, versus a consensus current full-year estimate of $8.42.
• Arch recently beat expectations, reporting $2.98 EPS (vs. $2.34 consensus) and $4.93B in revenue, yet analyst coverage is mixed with an average rating of "Hold" and a consensus target price of $109.40.
• Company insiders have sold roughly 78,267 shares (~$7.29M) in the past 90 days (including the CEO), while institutional investors own about 89.07% of the stock.

Arch Capital Group Ltd. (NASDAQ:ACGL - Free Report) - Analysts at Zacks Research cut their Q1 2028 earnings per share estimates for Arch Capital Group in a note issued to investors on Thursday, April 9th. Zacks Research analyst Team now anticipates that the insurance provider will post earnings of $2.76 per share for the quarter, down from their previous estimate of $2.78. 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 FY2028 earnings at $11.18 EPS.

Several other equities research analysts have also recently weighed in on the company. JPMorgan Chase & Co. upped their target price on Arch Capital Group from $111.00 to $117.00 and gave the stock a "neutral" rating in a research note on Wednesday, January 7th. The Goldman Sachs Group restated a "sell" rating and set a $93.00 target price (up from $84.00) on shares of Arch Capital Group in a research note on Wednesday, January 7th. Mizuho upped their target price on Arch Capital Group from $95.00 to $102.00 and gave the stock a "neutral" rating in a research note on Thursday, February 12th. Evercore set a $100.00 target price on Arch Capital Group and gave the stock an "in-line" rating in a research note on Wednesday, January 7th. Finally, Weiss Ratings upgraded Arch Capital Group from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, February 4th. Nine research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $109.40.

Arch Capital Group Stock Performance

Shares of ACGL stock opened at $95.97 on Monday. The stock has a 50 day simple moving average of $96.93 and a 200 day simple moving average of $93.71. The stock has a market cap of $34.19 billion, a P/E ratio of 8.26, a price-to-earnings-growth ratio of 3.92 and a beta of 0.41. The company has a current ratio of 0.53, a quick ratio of 0.53 and a debt-to-equity ratio of 0.13. Arch Capital Group has a 1 year low of $82.44 and a 1 year high of $103.39.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last issued its quarterly earnings results on Monday, February 9th. The insurance provider reported $2.98 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.34 by $0.64. The business had revenue of $4.93 billion during the quarter, compared to analysts' expectations of $3.94 billion. Arch Capital Group had a return on equity of 16.73% and a net margin of 22.07%.During the same period in the previous year, the company posted $2.26 earnings per share.

Insiders Place Their Bets

In other Arch Capital Group news, CEO Nicolas Papadopoulo sold 21,930 shares of the company's stock in a transaction on Tuesday, March 10th. The stock was 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 directly owned 871,594 shares in the company, valued at $83,943,218.14. This represents a 2.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider David Gansberg sold 5,907 shares of the stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $96.37, for a total value of $569,257.59. Following the completion of the transaction, the insider owned 336,559 shares of the company's stock, valued at $32,434,190.83. The trade was a 1.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 78,267 shares of company stock valued at $7,291,637 over the last ninety days. Company insiders own 3.30% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Elyxium Wealth LLC bought a new position in shares of Arch Capital Group in the 4th quarter valued at $27,000. WealthCollab LLC lifted its stake in shares of Arch Capital Group by 410.3% in the 3rd quarter. WealthCollab LLC now owns 296 shares of the insurance provider's stock valued at $27,000 after acquiring an additional 238 shares during the last quarter. JPL Wealth Management LLC bought a new position in shares of Arch Capital Group in the 3rd quarter valued at $28,000. Aventura Private Wealth LLC bought a new position in shares of Arch Capital Group in the 4th quarter valued at $30,000. Finally, Grove Bank & Trust bought a new position in shares of Arch Capital Group in the 4th quarter valued at $30,000. 89.07% of the stock is currently owned by institutional investors.

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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