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 quarterly earnings results on Tuesday, April, 25th. The company reported $1.42 earnings per share for the quarter, beating the Thomson Reuters' consensus estimate of $1.33 by $0.09. The business had revenue of $1.23 billion for the quarter, compared to the consensus estimate of $1.19 billion. Arch Capital Group had a return on equity of 8.85% and a net margin of 16.92%. During the same quarter in the previous year, the business earned $1.20 EPS. View Arch Capital Group's Earnings History.

Arch Capital Group is scheduled to release their next quarterly earnings announcement on Wednesday, July, 26th 2017. View Earnings Estimates for Arch Capital Group.

11 equities research analysts have issued twelve-month target prices for Arch Capital Group's stock. Their forecasts range from $79.00 to $102.00. On average, they expect Arch Capital Group's stock price to reach $91.67 in the next twelve months. 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)

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

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 retail and institutional investors. Top institutional shareholders include APG Asset Management N.V. (0.81%), Aperio Group LLC (0.18%), Pinnacle Advisory Group Inc. (0.17%), Bank of Montreal Can (0.07%), Forsta AP Fonden (0.05%) and Assenagon Asset Management S.A. (0.04%). 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 Denali Advisors LLC, Assenagon Asset Management S.A., Aperio Group LLC, Eqis Capital Management Inc., State of Alaska Department of Revenue, Xact Kapitalforvaltning AB and Daiwa SB Investments Ltd.. Company insiders that have sold Arch Capital Group stock in the last year include Constantine Iordanou, David Mcelroy, 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 purchased by a variety of institutional investors in the last quarter, including Oregon Public Employees Retirement Fund, Mn Services Vermogensbeheer B.V., APG Asset Management N.V., Bedrijfstakpensioenfonds Voor DE Media PNO, NN Investment Partners Holdings N.V., Forsta AP Fonden, Bank of Montreal Can and DnB Asset Management AS. 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 $98.50.