Arch Capital Group Company Profile (NASDAQ:ACGL)

Arch Capital Group trades on the NASDAQ under the ticker symbol "ACGL."

Arch Capital Group Ltd. (NASDAQ:ACGL) posted its earnings results on Wednesday, July, 26th. The company reported $1.21 EPS for the quarter, topping the Thomson Reuters' consensus estimate of $1.20 by $0.01. The firm had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $1.28 billion. Arch Capital Group had a net margin of 15.65% and a return on equity of 8.76%. The business's quarterly revenue was up 22.0% on a year-over-year basis. During the same period in the prior year, the business posted $1.13 earnings per share. View Arch Capital Group's Earnings History.

Arch Capital Group is scheduled to release their next quarterly earnings announcement on Wednesday, October, 25th 2017. View Earnings Estimates for Arch Capital Group.

10 brokerages have issued 1 year price targets for Arch Capital Group's shares. Their predictions range from $79.00 to $102.00. On average, they anticipate Arch Capital Group's share price to reach $92.88 in the next year. View Analyst Ratings for Arch Capital Group.

Here are some recent quotes from research analysts about Arch Capital Group stock:

• 1. According to Zacks Investment Research, "Shares of Arch Capital have underperformed the Zacks categorized Property and Casualty industry quarter to date. The company witnessed its 2017 estimates moving south over the last 30 days. Exposure to catastrophe losses poses an inherent risk to the P&C business, inducing volatility in underwriting results. Also, a still low interest rate environment and intense competition raise concerns for the company. Nonetheless, with a strong product portfolio, Arch Capital has been maintaining an exemplary track record of premium growth. This apart, the company has been making efforts to diversify its Mortgage Insurance business through strategic acquisitions. Moreover, the insurer remains focused in boosting shareholders’ value through share buybacks and dividend payments. Such effective capital deployment makes the stock an attractive pick for yield-seeking investors." (6/27/2017)
• 2. Wells Fargo & Company analysts commented, "We await more details from the company to determine whether this will potentially lead to additional reserve charges across the industry." (6/7/2017)
• 3. BMO Capital Markets analysts commented, "We are incorporating a $4 embedded value into our ACGL valuation stemming from the future earn-out of already written mortgage insurance business. In addition, we expect the incorporation of the UGC book to lower the overall earnings volatility of Arch as a majority of earnings over the next 12-24 months will come from already written mortgage insurance. While Arch was never known for volatility, the reduced PMLs and mortgage insurance earn-out should stabilize it even further, justifying an increased valuation." (2/28/2017)
• 4. Goldman Sachs Group, Inc. (The) analysts commented, "management is willing to ramp up its sub-scale mortgage operations faster than previously expected" with the acquisition of American International Group Inc (NYSE: AIG)'s United Guaranty operations.The brokerage noted that the acquisition shows the willingness of the company to deploy significant capital to scale its mortgage insurance business faster than it could do so organically."Our analysis implies that Arch could see approximately 10–50 percent of EPS accretion, which could increase Arch ROEs by approximately 50bps to 300bps, all else being equal," analyst Michael Nannizzi wrote in a note.The brokerage said the shift to mortgage "would provide the company with an additional earnings lever not available to pure P&C peers." Also, the company appears to be more willing to bypass organic growth via the usage of M&A.Related Link: Stocks Affected By Hurricane Season"Given market conditions and returns in MI are much more attractive than P&C more broadly, on a pro-forma basis a potentially scaled up MI platform could have a significant impact on earnings," Nannizzi highlighted.Nannizzi also raised his price target to $79 from $66, equivalent to 1.4x 2Q17E book value (from 1.1x previously)."[W]e believe the company should garner a higher multiple as it continues to shift its business profile away from reinsurance and into mortgage insurance," (9/7/2016)

Arch Capital Group saw a increase in short interest in the month of July. As of July 31st, there was short interest totalling 1,311,072 shares, an increase of 23.2% from the July 14th total of 1,064,333 shares. Based on an average daily trading volume, of 510,714 shares, the days-to-cover ratio is currently 2.6 days. Approximately 1.0% of the company's stock are short sold.

Some companies that are related to Arch Capital Group include Loews (L), Markel Corporation (MKL), CNA Financial Corporation (CNA), Cincinnati Financial Corporation (CINF), American Financial Group (AFG), Alleghany Corporation (Y), W.R. Berkley Corporation (WRB), RSA Insurance Group plc (RSA), Erie Indemnity Company (ERIE), First American Corporation (The) (FAF), Direct Line Insurance Group PLC (DLG), Assured Guaranty (AGO), Old Republic International Corporation (ORI), The Hanover Insurance Group (THG), Radian Group (RDN), White Mountains Insurance Group (WTM), Hiscox Ltd (HSX) and Essent Group (ESNT).

Arch Capital Group's management team includes the folowing people:

• Constantine P. Iordanou, Chairman of the Board, Chief Executive Officer
• Marc Grandisson, President, Chief Operating Officer
• John M. Pasquesi, Independent Vice Chairman of the Board
• Mark Donald Lyons, Chief Financial Officer, Executive Vice President, Treasurer
• David Gansberg, President, Chief Executive Officer of Arch Mortgage Insurance Company
• Jerome Halgan, President, Chief Executive Officer of Arch Reinsurance Company
• David H. McElroy, Chairman and Chief Executive Officer of Arch Worldwide Insurance Group
• John P. Mentz, President of Arch Insurance Group Inc.
• Nicolas Papadopoulo, Chief Executive Officer of Arch Reinsurance Group
• Louis T. Petrillo, President, General Counsel of Arch Capital Services Inc.

Arch Capital Group's stock is owned by a variety of of institutional and retail investors. Top institutional investors include Artisan Partners Limited Partnership (13.11%), Vanguard Group Inc. (7.68%), BlackRock Inc. (6.47%), Bamco Inc. NY (6.35%), State Street Corp (2.13%) and FMR LLC (1.71%). Company insiders that own Arch Capital Group stock include Brian S Posner, Constantine Iordanou, David Mcelroy, John D Vollaro, Louis T Petrillo, Marc Grandisson, Mark Donald Lyons, Nicolas Papadopoulo, W Preston Hutchings and Yiorgos Lillikas. View Institutional Ownership Trends for Arch Capital Group.

Arch Capital Group's stock was sold by a variety of institutional investors in the last quarter, including Bamco Inc. NY, Shell Asset Management Co., Zurcher Kantonalbank Zurich Cantonalbank, First Trust Advisors LP, BlackRock Inc., TD Asset Management Inc., PGGM Investments and Scout Investments Inc.. Company insiders that have sold Arch Capital Group stock in the last year include Constantine Iordanou, John D Vollaro, Louis T Petrillo, Marc Grandisson, Mark Donald Lyons, Nicolas Papadopoulo and W Preston Hutchings. View Insider Buying and Selling for Arch Capital Group.

Arch Capital Group's stock was bought by a variety of institutional investors in the last quarter, including Citadel Advisors LLC, Janus Henderson Group PLC, Vanguard Group Inc., FMR LLC, Goldman Sachs Group Inc., Capital World Investors, Renaissance Technologies LLC and Wells Fargo & Company MN. View Insider Buying and Selling for Arch Capital Group.

Shares of Arch Capital Group can be purchased through any online brokerage account. Popular online brokerages include Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Scottrade, Fidelity and Charles Schwab.

One share of Arch Capital Group stock can currently be purchased for approximately $97.05.