Roth Capital Expects Weaker Earnings for Arch Capital Group

Arch Capital Group Ltd. (NASDAQ:ACGL) – Equities research analysts at Roth Capital reduced their Q4 2024 earnings per share estimates for shares of Arch Capital Group in a report issued on Thursday, October 31st. Roth Capital analyst H. Fong now forecasts that the insurance provider will post earnings of $1.79 per share for the quarter, down from their previous estimate of $2.50. The consensus estimate for Arch Capital Group’s current full-year earnings is $9.09 per share. Roth Capital also issued estimates for Arch Capital Group’s Q1 2025 earnings at $2.36 EPS, Q2 2025 earnings at $2.43 EPS, FY2025 earnings at $9.25 EPS, Q1 2026 earnings at $2.71 EPS, Q3 2026 earnings at $2.08 EPS and FY2026 earnings at $10.50 EPS.

Arch Capital Group (NASDAQ:ACGL) last posted its quarterly earnings data on Wednesday, October 30th. The insurance provider reported $1.99 EPS for the quarter, beating the consensus estimate of $1.94 by $0.05. The business had revenue of $4.72 billion for the quarter, compared to analysts’ expectations of $4.05 billion. Arch Capital Group had a net margin of 33.86% and a return on equity of 18.94%. During the same period in the previous year, the firm posted $2.31 EPS.

A number of other equities analysts also recently weighed in on ACGL. Wells Fargo & Company lowered their target price on shares of Arch Capital Group from $126.00 to $118.00 and set an “overweight” rating on the stock in a report on Monday. Citigroup increased their price target on shares of Arch Capital Group from $105.00 to $114.00 and gave the company a “neutral” rating in a report on Tuesday, September 10th. Bank of America boosted their price objective on Arch Capital Group from $119.00 to $135.00 and gave the stock a “buy” rating in a report on Thursday, October 10th. StockNews.com cut shares of Arch Capital Group from a “buy” rating to a “hold” rating in a research note on Thursday, October 24th. Finally, Royal Bank of Canada decreased their target price on shares of Arch Capital Group from $128.00 to $125.00 and set an “outperform” rating on the stock in a research report on Friday, November 1st. Five analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $119.87.

Arch Capital Group Stock Performance

Shares of NASDAQ ACGL opened at $96.50 on Monday. Arch Capital Group has a 52 week low of $72.85 and a 52 week high of $116.47. The stock has a market capitalization of $36.29 billion, a PE ratio of 6.48, a price-to-earnings-growth ratio of 1.38 and a beta of 0.61. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.60 and a current ratio of 0.58. The stock has a 50 day moving average price of $110.14 and a 200 day moving average price of $102.90.

Institutional Trading of Arch Capital Group

Institutional investors have recently added to or reduced their stakes in the stock. Norden Group LLC bought a new position in Arch Capital Group during the 1st quarter worth approximately $431,000. Mirae Asset Global Investments Co. Ltd. increased its holdings in Arch Capital Group by 6.3% in the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 94,729 shares of the insurance provider’s stock worth $8,757,000 after purchasing an additional 5,607 shares in the last quarter. Janney Montgomery Scott LLC lifted its stake in Arch Capital Group by 1.6% in the first quarter. Janney Montgomery Scott LLC now owns 90,592 shares of the insurance provider’s stock valued at $8,374,000 after buying an additional 1,444 shares during the period. Nordea Investment Management AB boosted its holdings in shares of Arch Capital Group by 5.4% during the 1st quarter. Nordea Investment Management AB now owns 27,951 shares of the insurance provider’s stock worth $2,566,000 after buying an additional 1,442 shares in the last quarter. Finally, Daiwa Securities Group Inc. grew its position in shares of Arch Capital Group by 9.6% during the 1st quarter. Daiwa Securities Group Inc. now owns 36,777 shares of the insurance provider’s stock worth $3,400,000 after buying an additional 3,216 shares during the period. 89.07% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Arch Capital Group

In other news, CFO Francois Morin sold 11,460 shares of the company’s stock in a transaction that occurred on Friday, August 16th. The stock was sold at an average price of $102.46, for a total value of $1,174,191.60. Following the completion of the transaction, the chief financial officer now owns 221,779 shares of the company’s stock, valued at $22,723,476.34. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Company insiders own 4.00% 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.