Zacks Research Has Bearish Outlook for ACGL FY2026 Earnings

Key Points

• Zacks Research has reduced its FY2026 earnings per share forecast for Arch Capital Group from $9.52 to $9.43, while the current consensus estimate stands at $8.42 EPS.
• Numerous research firms have varying ratings on Arch Capital Group, with a consensus rating of "Moderate Buy" and a price target averaging $112.13.
• Arch Capital Group recently reported earnings of $2.58 per share for the last quarter, exceeding analysts' estimates of $2.30.

Arch Capital Group Ltd. (NASDAQ:ACGL - Free Report) - Investment analysts at Zacks Research cut their FY2026 earnings per share (EPS) estimates for Arch Capital Group in a report issued on Tuesday, August 12th. Zacks Research analyst T. De now forecasts that the insurance provider will post earnings per share of $9.43 for the year, down from their prior forecast of $9.52. 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 Q1 2027 earnings at $2.64 EPS and Q2 2027 earnings at $2.58 EPS.

Several other research firms have also weighed in on ACGL. Citigroup began coverage on Arch Capital Group in a research note on Wednesday. They issued a "buy" rating and a $113.00 price objective on the stock. Cantor Fitzgerald upgraded Arch Capital Group to a "hold" rating in a research note on Wednesday. Jefferies Financial Group lowered Arch Capital Group from a "buy" rating to a "hold" rating and lowered their price objective for the company from $106.00 to $100.00 in a research note on Tuesday, June 10th. Keefe, Bruyette & Woods upped their price objective on Arch Capital Group from $102.00 to $103.00 and gave the company a "market perform" rating in a research note on Thursday. Finally, Wells Fargo & Company lowered their price objective on Arch Capital Group from $110.00 to $107.00 and set an "overweight" rating on the stock in a research note on Thursday, July 31st. Eight research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $112.13.

Arch Capital Group Stock Performance

ACGL stock traded up $0.77 during trading on Thursday, reaching $90.72. 377,595 shares of the stock were exchanged, compared to its average volume of 1,924,761. Arch Capital Group has a twelve month low of $82.49 and a twelve month high of $116.47. The company has a market capitalization of $33.86 billion, a P/E ratio of 9.35, a price-to-earnings-growth ratio of 5.39 and a beta of 0.49. The stock has a 50 day simple moving average of $89.46 and a 200-day simple moving average of $91.32. The company has a current ratio of 0.56, a quick ratio of 0.56 and a debt-to-equity ratio of 0.16.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last released its earnings results on Tuesday, July 29th. The insurance provider reported $2.58 earnings per share for the quarter, topping analysts' consensus estimates 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 business had revenue of $4.35 billion for the quarter, compared to the consensus estimate of $4.29 billion. During the same period last year, the business earned $2.57 earnings per share.

Institutional Trading of Arch Capital Group

Institutional investors and hedge funds have recently made changes to their positions in the business. Norges Bank bought a new position in Arch Capital Group during the 2nd quarter worth about $441,551,000. Nuveen LLC bought a new position in Arch Capital Group during the 1st quarter worth about $399,651,000. First Trust Advisors LP increased its holdings in Arch Capital Group by 663.3% during the 4th quarter. First Trust Advisors LP now owns 2,462,382 shares of the insurance provider's stock worth $227,401,000 after purchasing an additional 2,139,782 shares in the last quarter. JPMorgan Chase & Co. increased its holdings in Arch Capital Group by 30.5% during the 1st quarter. JPMorgan Chase & Co. now owns 7,470,591 shares of the insurance provider's stock worth $718,522,000 after purchasing an additional 1,743,945 shares in the last quarter. Finally, Marshall Wace LLP bought a new position in Arch Capital Group during the 4th quarter worth about $151,342,000. Institutional investors own 89.07% of the company's stock.

Insider Transactions at Arch Capital Group

In other Arch Capital Group news, CFO Francois Morin sold 12,630 shares of the company's stock in a transaction on Friday, May 16th. The stock was sold at an average price of $94.58, for a total transaction of $1,194,545.40. Following the transaction, the chief financial officer owned 274,681 shares of the company's stock, valued at approximately $25,979,328.98. This represents a 4.40% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 4.20% 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.

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