Arch Capital Group (NASDAQ:ACGL) Shares Gap Down on Analyst Downgrade

Arch Capital Group Ltd. (NASDAQ:ACGL)’s stock price gapped down before the market opened on Monday after Wells Fargo & Company lowered their price target on the stock from $118.00 to $109.00. The stock had previously closed at $101.83, but opened at $96.55. Wells Fargo & Company currently has an overweight rating on the stock. Arch Capital Group shares last traded at $96.54, with a volume of 127,243 shares trading hands.

Several other brokerages have also weighed in on ACGL. Roth Mkm upped their target price on Arch Capital Group from $110.00 to $125.00 and gave the stock a “buy” rating in a research report on Friday, August 23rd. StockNews.com downgraded shares of Arch Capital Group from a “buy” rating to a “hold” rating in a research report on Thursday, October 24th. Royal Bank of Canada lowered their price target on Arch Capital Group from $128.00 to $125.00 and set an “outperform” rating for the company in a research note on Friday, November 1st. BMO Capital Markets boosted their target price on Arch Capital Group from $98.00 to $104.00 and gave the company a “market perform” rating in a research note on Wednesday, November 6th. Finally, TD Cowen increased their price target on Arch Capital Group from $116.00 to $138.00 and gave the company a “buy” rating in a research note on Friday, September 20th. Six research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $118.38.

Institutional Investors Weigh In On Arch Capital Group

Institutional investors have recently modified their holdings of the stock. Toronto Dominion Bank raised its stake in shares of Arch Capital Group by 1.5% in the third quarter. Toronto Dominion Bank now owns 187,124 shares of the insurance provider’s stock worth $20,935,000 after buying an additional 2,748 shares during the period. Coldstream Capital Management Inc. increased its holdings in shares of Arch Capital Group by 17.0% in the 3rd quarter. Coldstream Capital Management Inc. now owns 5,955 shares of the insurance provider’s stock valued at $659,000 after acquiring an additional 865 shares during the period. Geode Capital Management LLC boosted its holdings in Arch Capital Group by 2.4% in the third quarter. Geode Capital Management LLC now owns 10,830,263 shares of the insurance provider’s stock worth $1,208,307,000 after acquiring an additional 253,648 shares in the last quarter. Brophy Wealth Management LLC acquired a new stake in shares of Arch Capital Group during the 3rd quarter worth approximately $450,000. Finally, Vestcor Inc boosted its position in Arch Capital Group by 1.6% during the third quarter. Vestcor Inc now owns 83,664 shares of the insurance provider’s stock worth $9,360,000 after purchasing an additional 1,291 shares in the last quarter. 89.07% of the stock is owned by hedge funds and other institutional investors.

Arch Capital Group Stock Down 1.3 %

The firm has a market cap of $36.00 billion, a PE ratio of 6.42, a PEG ratio of 1.47 and a beta of 0.61. The business’s 50 day moving average price is $107.43 and its 200 day moving average price is $103.39. The company has a debt-to-equity ratio of 0.17, a current ratio of 0.58 and a quick ratio of 0.58.

Arch Capital Group (NASDAQ:ACGL) last issued its quarterly earnings results on Wednesday, October 30th. The insurance provider reported $1.99 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.94 by $0.05. The company had revenue of $4.72 billion for the quarter, compared to analyst estimates 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 prior year, the firm earned $2.31 earnings per share. On average, equities research analysts expect that Arch Capital Group Ltd. will post 9.01 earnings per share for the current year.

Arch Capital Group Announces Dividend

The company also recently declared a special dividend, which will be paid on Wednesday, December 4th. Investors of record on Monday, November 18th will be issued a dividend of $5.00 per share. The ex-dividend date of this dividend is Monday, November 18th.

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.