Axis Capital (NYSE:AXS) Rating Lowered to Strong Sell at Zacks Research

Axis Capital (NYSE:AXS) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Wednesday,Zacks.com reports. Zacks Research also issued estimates for Axis Capital’s Q3 2026 earnings at $2.87 EPS, Q4 2026 earnings at $3.45 EPS, FY2026 earnings at $12.58 EPS, Q1 2027 earnings at $3.25 EPS, Q2 2027 earnings at $3.43 EPS, Q3 2027 earnings at $3.29 EPS, Q4 2027 earnings at $3.66 EPS, FY2027 earnings at $13.64 EPS, Q1 2028 earnings at $3.59 EPS, Q2 2028 earnings at $3.76 EPS and FY2028 earnings at $14.62 EPS.

A number of other brokerages have also recently commented on AXS. Keefe, Bruyette & Woods lowered their target price on Axis Capital from $131.00 to $125.00 and set an “outperform” rating on the stock in a report on Tuesday, August 4th. Weiss Ratings upgraded Axis Capital from a “buy (b+)” rating to a “buy (a-)” rating in a research report on Thursday, July 30th. UBS Group dropped their price objective on Axis Capital from $131.00 to $126.00 and set a “buy” rating for the company in a research report on Monday, August 3rd. Mizuho cut their target price on shares of Axis Capital from $142.00 to $130.00 and set an “outperform” rating for the company in a research note on Monday, August 3rd. Finally, Bank of America decreased their price target on shares of Axis Capital from $115.00 to $106.00 and set a “neutral” rating on the stock in a research note on Tuesday, April 14th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Axis Capital currently has a consensus rating of “Moderate Buy” and a consensus price target of $120.50.

Axis Capital Stock Performance

NYSE:AXS opened at $100.07 on Wednesday. The company has a current ratio of 0.64, a quick ratio of 0.64 and a debt-to-equity ratio of 0.26. The company has a market capitalization of $7.30 billion, a P/E ratio of 7.11, a price-to-earnings-growth ratio of 4.34 and a beta of 0.50. The firm has a 50-day moving average price of $107.36 and a two-hundred day moving average price of $103.30. Axis Capital has a twelve month low of $88.07 and a twelve month high of $119.99.

Axis Capital (NYSE:AXS) last announced its quarterly earnings results on Wednesday, July 29th. The insurance provider reported $2.84 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.25 by ($0.41). The business had revenue of $1.75 billion during the quarter, compared to analysts’ expectations of $1.74 billion. Axis Capital had a net margin of 16.23% and a return on equity of 17.00%. The firm’s revenue for the quarter was up 7.4% on a year-over-year basis. During the same period last year, the company earned $3.29 EPS. As a group, research analysts expect that Axis Capital will post 12.39 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of AXS. AQR Capital Management LLC grew its holdings in Axis Capital by 30.9% in the fourth quarter. AQR Capital Management LLC now owns 4,592,270 shares of the insurance provider’s stock valued at $491,786,000 after purchasing an additional 1,083,579 shares during the period. Dimensional Fund Advisors LP boosted its holdings in shares of Axis Capital by 8.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 3,682,238 shares of the insurance provider’s stock valued at $373,412,000 after purchasing an additional 299,573 shares during the last quarter. Janus Henderson Group PLC grew its stake in shares of Axis Capital by 1.2% during the 1st quarter. Janus Henderson Group PLC now owns 1,710,902 shares of the insurance provider’s stock valued at $173,504,000 after buying an additional 21,001 shares during the period. State Street Corp grew its stake in shares of Axis Capital by 1.0% during the 2nd quarter. State Street Corp now owns 1,631,198 shares of the insurance provider’s stock valued at $170,069,000 after buying an additional 15,755 shares during the period. Finally, Geode Capital Management LLC grew its stake in shares of Axis Capital by 0.7% during the 4th quarter. Geode Capital Management LLC now owns 1,387,004 shares of the insurance provider’s stock valued at $148,565,000 after buying an additional 10,246 shares during the period. 93.44% of the stock is currently owned by hedge funds and other institutional investors.

Axis Capital News Roundup

Here are the key news stories impacting Axis Capital this week:

• Positive Sentiment: AXS’s specialty-insurance focus, premium growth and capital-return potential support its long-term investment case. The stock also trades at a discount to parts of the insurance industry, which may offer valuation support if underwriting performance improves. AXS Lags Industry, Trades at a Discount: Here’s How to Play the Stock
• Neutral Sentiment: Zacks Research maintained its current full-year EPS estimate at $12.58 and forecasts fiscal 2027 earnings of $13.64. Those figures imply continued earnings growth, although they were accompanied by lower estimates for several individual quarters.
• Negative Sentiment: Zacks Research reduced its fiscal 2026 EPS estimate to $12.58 from $13.54. Quarterly estimates were also cut for Q3 2026 to $2.87 from $3.38, Q4 2026 to $3.45 from $3.58, Q2 2027 to $3.43 from $3.71, Q3 2027 to $3.29 from $3.69, and Q2 2028 to $3.76 from $3.88.
• Negative Sentiment: Longer-term projections were lowered as well: fiscal 2027 EPS fell to $13.64 from $14.35, while fiscal 2028 EPS declined to $14.62 from $14.97. Additional revisions cut Q1 2027 EPS to $3.25 from $3.40 and Q1 2028 EPS to $3.59 from $3.78.
• Negative Sentiment: The estimate reductions suggest analysts see greater pressure on Axis Capital’s earnings outlook, potentially from catastrophe losses, competitive pricing and weaker underwriting margins. This is notable because the company’s most recent quarterly EPS of $2.84 already missed the $3.25 consensus estimate, despite revenue exceeding expectations.

About Axis Capital

AXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products in Bermuda, the United States, and internationally. It operates through two segments, Insurance and Reinsurance. The Insurance segment offers professional insurance products that cover directors' and officers' liability, errors and omissions, employment practices, fiduciary, crime, professional indemnity, medical malpractice, and other financial insurance related coverages for commercial enterprises, financial institutions, not-for-profit organizations, and other professional service providers; and property insurance products for commercial buildings, residential premises, construction projects, property in transit, onshore renewable energy installations, and physical damage and business interruption following an act of terrorism.