Zacks Research Issues Optimistic Forecast for ACGL Earnings

Key Points

• Zacks Research raised Arch Capital’s Q3 2026 EPS estimate to $1.86 from $1.85 and forecast FY2026 earnings of $9.35 per share, broadly in line with the $9.40 consensus.
• Arch Capital recently beat quarterly expectations, reporting $2.56 EPS versus $2.47 expected and revenue of $4.67 billion versus $4.36 billion. However, Zacks lowered several FY2027 and FY2028 earnings forecasts, tempering the longer-term outlook.
• Analyst sentiment remains mixed: the stock has an overall “Hold” rating with a $111.11 consensus price target, while shares recently traded near $98.26.

Arch Capital Group Ltd. (NASDAQ:ACGL - Free Report) - Equities research analysts at Zacks Research increased their Q3 2026 earnings per share estimates for shares of Arch Capital Group in a note issued to investors on Tuesday, August 11th. Zacks Research analyst Team now expects that the insurance provider will earn $1.86 per share for the quarter, up from their prior estimate of $1.85. The consensus estimate for Arch Capital Group's current full-year earnings is $9.40 per share. Zacks Research also issued estimates for Arch Capital Group's Q4 2026 earnings at $2.43 EPS, FY2026 earnings at $9.35 EPS, Q1 2027 earnings at $2.53 EPS, Q2 2027 earnings at $2.49 EPS, Q3 2027 earnings at $2.07 EPS, Q4 2027 earnings at $2.70 EPS, FY2027 earnings at $9.79 EPS, Q1 2028 earnings at $2.59 EPS, Q2 2028 earnings at $2.73 EPS and FY2028 earnings at $10.57 EPS.

Arch Capital Group (NASDAQ:ACGL - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The insurance provider reported $2.56 earnings per share for the quarter, beating analysts' consensus estimates of $2.47 by $0.09. Arch Capital Group had a return on equity of 17.06% and a net margin of 24.40%.The firm had revenue of $4.67 billion for the quarter, compared to the consensus estimate of $4.36 billion. During the same period in the previous year, the business earned $2.58 earnings per share.

Several other analysts have also recently commented on the stock. JPMorgan Chase & Co. raised their price objective on shares of Arch Capital Group from $116.00 to $118.00 and gave the company a "neutral" rating in a research note on Tuesday. Royal Bank Of Canada reiterated an "outperform" rating and set a $120.00 target price (up from $115.00) on shares of Arch Capital Group in a research report on Thursday, July 30th. Atlantic Securities set a $126.00 price target on Arch Capital Group in a research report on Wednesday, July 15th. UBS Group reiterated a "buy" rating and issued a $120.00 price objective (up from $114.00) on shares of Arch Capital Group in a research report on Wednesday, July 8th. Finally, Cantor Fitzgerald increased their price objective on shares of Arch Capital Group from $102.00 to $110.00 and gave the company a "neutral" rating in a research note on Monday, August 3rd. Seven investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $111.11.

Arch Capital Group Trading Up 0.0%

NASDAQ:ACGL opened at $98.26 on Wednesday. Arch Capital Group has a 1 year low of $82.44 and a 1 year high of $107.08. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.57 and a current ratio of 0.57. The stock has a fifty day moving average price of $97.60 and a two-hundred day moving average price of $96.52. The stock has a market capitalization of $33.53 billion, a price-to-earnings ratio of 7.68, a PEG ratio of 10.35 and a beta of 0.31.

Institutional Trading of Arch Capital Group

A number of hedge funds have recently bought and sold shares of the company. Elyxium Wealth LLC purchased a new position in shares of Arch Capital Group during the 4th quarter worth $27,000. WealthCollab LLC grew its position in shares of Arch Capital Group by 410.3% in the third quarter. WealthCollab LLC now owns 296 shares of the insurance provider's stock valued at $27,000 after purchasing an additional 238 shares during the period. Torren Management LLC increased its stake in Arch Capital Group by 66.9% in the second quarter. Torren Management LLC now owns 292 shares of the insurance provider's stock valued at $28,000 after purchasing an additional 117 shares during the last quarter. JPL Wealth Management LLC acquired a new position in Arch Capital Group in the third quarter valued at $28,000. Finally, TD Waterhouse Canada Inc. lifted its position in Arch Capital Group by 72.7% during the fourth quarter. TD Waterhouse Canada Inc. now owns 323 shares of the insurance provider's stock worth $31,000 after buying an additional 136 shares during the period. Institutional investors and hedge funds own 89.07% of the company's stock.

Insider Activity

In other news, Director Brian S. Posner sold 3,000 shares of Arch Capital Group stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $19.66, for a total transaction of $58,980.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 3.30% of the stock is owned by corporate insiders.

Arch Capital Group News Roundup

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

• Positive Sentiment: Zacks Research raised its FY2026 EPS forecast to $9.35 from $9.25 and increased its Q3 2026 estimate to $1.86 from $1.85. It also lifted Q2 2027 EPS to $2.49 from $2.41 and Q2 2028 EPS to $2.73 from $2.62, suggesting some confidence in Arch Capital’s underwriting and investment earnings outlook.
• Positive Sentiment: JPMorgan increased its ACGL price target to $118 from $116 while maintaining a “neutral” rating. The higher target indicates potential upside from recent trading levels, but the unchanged rating signals that the firm does not see a strong enough catalyst to recommend an outright buy. JPMorgan price target update
• Neutral Sentiment: Zacks’ current full-year consensus reference remains $9.40 EPS, while its revised FY2026 estimate of $9.35 is close to consensus. The company’s latest reported quarter also exceeded expectations, with $2.56 EPS versus the $2.47 consensus and revenue of $4.67 billion versus $4.36 billion.
• Neutral Sentiment: The reported short-interest data showed zero shares sold short and a zero-day days-to-cover ratio, indicating no meaningful short-squeeze or short-selling signal. The figures appear inconsistent, so investors should treat them cautiously.
• Negative Sentiment: Zacks reduced multiple future earnings forecasts: Q4 2026 EPS to $2.43 from $2.51, Q1 2027 to $2.53 from $2.58, Q3 2027 to $2.07 from $2.21, Q4 2027 to $2.70 from $2.80, and Q1 2028 to $2.59 from $2.74.
• Negative Sentiment: Zacks also cut FY2027 EPS to $9.79 from $9.99 and FY2028 EPS to $10.57 from $10.82. These downward revisions to longer-term profit expectations may temper enthusiasm despite the improved FY2026 outlook.

About Arch Capital Group

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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