Zacks Research Has Bullish Estimate for ACGL FY2025 Earnings

Key Points

• Zacks Research has increased its FY2025 earnings per share estimate for Arch Capital Group from $7.85 to $8.07, indicating a positive outlook for the insurance provider.
• Analyst ratings for Arch Capital Group include ten buy ratings and eight hold ratings, reflecting a consensus rating of "Moderate Buy" with an average price target of $112.06.
• Arch Capital Group reported a Q2 earnings per share of $2.58, exceeding the consensus estimate of $2.30, alongside revenue of $4.35 billion which was also above expectations.

Arch Capital Group Ltd. (NASDAQ:ACGL - Free Report) - Stock analysts at Zacks Research raised their FY2025 earnings per share estimates for Arch Capital Group in a research note issued on Tuesday, August 12th. Zacks Research analyst T. De now anticipates that the insurance provider will post earnings per share of $8.07 for the year, up from their previous estimate of $7.85. 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 2025 earnings at $2.20 EPS, Q1 2026 earnings at $2.48 EPS, Q2 2026 earnings at $2.54 EPS, Q3 2026 earnings at $2.10 EPS and FY2027 earnings at $10.03 EPS.

A number of other research analysts have also commented on the company. Keefe, Bruyette & Woods upped their target price on Arch Capital Group from $101.00 to $102.00 and gave the company a "market perform" rating in a research note on Tuesday, August 5th. UBS Group restated a "buy" rating and issued a $118.00 price objective (down previously from $124.00) on shares of Arch Capital Group in a research note on Monday, August 4th. Cowen reiterated a "buy" rating on shares of Arch Capital Group in a research report on Monday, August 4th. Cantor Fitzgerald assumed coverage on shares of Arch Capital Group in a research report on Tuesday. They issued a "neutral" rating and a $98.00 price target for the company. Finally, Citigroup began coverage on shares of Arch Capital Group in a research note on Wednesday. They set a "buy" rating and a $113.00 price target for the company. Eight equities research analysts have rated the stock with a hold rating and ten have issued a buy rating to the stock. Based on data from MarketBeat, Arch Capital Group currently has a consensus rating of "Moderate Buy" and an average price target of $112.06.

Arch Capital Group Stock Performance

NASDAQ:ACGL opened at $87.78 on Wednesday. The firm's 50-day moving average is $89.56 and its 200-day moving average is $91.33. The company has a market cap of $32.76 billion, a price-to-earnings ratio of 9.06, a PEG ratio of 5.54 and a beta of 0.49. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.56 and a current ratio of 0.56. Arch Capital Group has a 52-week low of $82.49 and a 52-week high of $116.47.

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

Institutional Investors Weigh In On Arch Capital Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ACGL. Capital A Wealth Management LLC acquired a new position in Arch Capital Group during the fourth quarter valued at approximately $25,000. Bartlett & CO. Wealth Management LLC bought a new stake in Arch Capital Group in the first quarter valued at approximately $27,000. Meeder Asset Management Inc. increased its holdings in shares of Arch Capital Group by 116.3% during the 1st quarter. Meeder Asset Management Inc. now owns 279 shares of the insurance provider's stock worth $27,000 after acquiring an additional 150 shares during the last quarter. Wayfinding Financial LLC bought a new position in Arch Capital Group during the first quarter worth $31,000. Finally, Zions Bancorporation National Association UT bought a new stake in shares of Arch Capital Group during the 1st quarter worth about $37,000. 89.07% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, CFO Francois Morin sold 12,630 shares of the business's stock in a transaction dated Friday, May 16th. The stock was sold at an average price of $94.58, for a total value of $1,194,545.40. Following the sale, the chief financial officer directly owned 274,681 shares in the company, valued at $25,979,328.98. The trade was a 4.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Company insiders own 4.10% 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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