Arch Capital Group (NASDAQ:ACGL) Rating Lowered to Hold at StockNews.com

Arch Capital Group (NASDAQ:ACGL) was downgraded by equities research analysts at StockNews.com from a “buy” rating to a “hold” rating in a research note issued on Wednesday.

Several other equities analysts have also issued reports on the stock. Wells Fargo & Company lifted their target price on shares of Arch Capital Group from $109.00 to $110.00 and gave the company an “overweight” rating in a report on Wednesday, May 1st. Roth Mkm restated a “buy” rating and issued a $110.00 price objective on shares of Arch Capital Group in a report on Tuesday, April 30th. JPMorgan Chase & Co. boosted their price objective on shares of Arch Capital Group from $88.00 to $92.00 and gave the stock a “neutral” rating in a report on Monday, April 8th. Morgan Stanley boosted their price objective on shares of Arch Capital Group from $104.00 to $109.00 and gave the stock an “overweight” rating in a report on Monday, April 15th. Finally, Evercore ISI boosted their price objective on shares of Arch Capital Group from $98.00 to $100.00 and gave the stock an “in-line” rating in a report on Tuesday, April 30th. Five analysts have rated the stock with a hold rating and ten have issued a buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $101.33.

Arch Capital Group Price Performance

ACGL stock opened at $101.02 on Wednesday. The firm has a 50 day moving average price of $98.91 and a 200-day moving average price of $89.19. Arch Capital Group has a 52-week low of $70.53 and a 52-week high of $103.79. The firm has a market capitalization of $37.93 billion, a price-to-earnings ratio of 7.97, a PEG ratio of 1.75 and a beta of 0.60. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.59 and a current ratio of 0.59.

Arch Capital Group (NASDAQ:ACGL) last released its earnings results on Monday, April 29th. The insurance provider reported $2.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.06 by $0.39. Arch Capital Group had a net margin of 33.65% and a return on equity of 21.85%. The firm had revenue of $4.09 billion during the quarter, compared to analyst estimates of $3.77 billion. During the same period last year, the business earned $1.73 earnings per share. The business’s revenue was up 19.3% on a year-over-year basis. Equities research analysts forecast that Arch Capital Group will post 8.55 EPS for the current fiscal year.

Insider Activity

In other news, CEO David Gansberg sold 10,000 shares of the business’s stock in a transaction on Monday, May 6th. The shares were sold at an average price of $96.64, for a total transaction of $966,400.00. Following the completion of the sale, the chief executive officer now owns 228,035 shares of the company’s stock, valued at approximately $22,037,302.40. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders own 4.20% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. HM Payson & Co. boosted its holdings in Arch Capital Group by 93.6% in the 1st quarter. HM Payson & Co. now owns 2,323 shares of the insurance provider’s stock worth $215,000 after buying an additional 1,123 shares during the period. Schwab Charitable Fund bought a new position in Arch Capital Group in the 1st quarter worth $462,000. Cetera Advisors LLC boosted its holdings in Arch Capital Group by 70.9% in the 1st quarter. Cetera Advisors LLC now owns 13,700 shares of the insurance provider’s stock worth $1,266,000 after buying an additional 5,684 shares during the period. Cetera Investment Advisers boosted its holdings in Arch Capital Group by 155.9% in the 1st quarter. Cetera Investment Advisers now owns 41,541 shares of the insurance provider’s stock worth $3,840,000 after buying an additional 25,306 shares during the period. Finally, Atria Investments Inc lifted its stake in Arch Capital Group by 19.7% in the 1st quarter. Atria Investments Inc now owns 24,463 shares of the insurance provider’s stock worth $2,261,000 after purchasing an additional 4,018 shares in the last quarter. Institutional investors own 89.07% 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.