Arch Capital Group (NASDAQ:ACGL)‘s stock had its “hold” rating reissued by analysts at Wells Fargo & Co in a research note issued on Tuesday, January 9th. They currently have a $96.00 price target on the insurance provider’s stock. Wells Fargo & Co’s price target would indicate a potential upside of 5.06% from the stock’s previous close.
The analysts wrote, “We are now including $67.5 million of cats, the mid-point of its previewed range. We had been including $57.5 million of cats in our model. As a result of the higher cats than we were modeling (due to the December fires) we are lowering our estimate to $1.20 (from $1.25) for the Q4 and $3.06 for FY 2017 (compared to our prior $3.12). Our 2018 and 2019 EPS estimates and price target are unchanged. Updated for cat losses outside of the October wildfires. The company now expects $60-75 million of pre-tax losses from Q4 cats (about 0.7-0.9% of its equity) from the California fires (October and December) and other global events, up from its prior estimate of $30-55 million of losses disclosed in its 10Q (the prior disclosure was only for the October wildfires). Most of the losses in the quarter stemmed from its non-U.S.””
Other equities research analysts have also issued reports about the stock. UBS Group reissued a “buy” rating on shares of Arch Capital Group in a report on Monday, October 30th. Royal Bank of Canada reaffirmed a “buy” rating and issued a $113.00 price objective on shares of Arch Capital Group in a research note on Friday, October 27th. Buckingham Research started coverage on shares of Arch Capital Group in a research note on Monday, September 11th. They issued a “buy” rating and a $106.00 price objective on the stock. Barclays upped their price objective on shares of Arch Capital Group from $91.00 to $95.00 and gave the company an “equal weight” rating in a research note on Monday, October 16th. Finally, Keefe, Bruyette & Woods reiterated a “hold” rating and set a $101.00 target price on shares of Arch Capital Group in a research report on Wednesday, December 6th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and five have given a buy rating to the company’s stock. The company presently has an average rating of “Hold” and a consensus price target of $100.40.
Arch Capital Group (NASDAQ:ACGL) last released its quarterly earnings data on Wednesday, October 25th. The insurance provider reported ($0.79) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of ($0.59) by ($0.20). The company had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.16 billion. Arch Capital Group had a return on equity of 5.57% and a net margin of 9.44%. Arch Capital Group’s revenue for the quarter was up 30.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.14 earnings per share. equities analysts forecast that Arch Capital Group will post 3.04 EPS for the current year.
In related news, CEO Nicolas Papadopoulo sold 54,554 shares of the stock in a transaction dated Tuesday, November 7th. The shares were sold at an average price of $95.53, for a total transaction of $5,211,543.62. Following the completion of the transaction, the chief executive officer now owns 147,481 shares in the company, valued at $14,088,859.93. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, CFO Mark Donald Lyons sold 5,500 shares of the stock in a transaction dated Monday, December 11th. The stock was sold at an average price of $92.04, for a total transaction of $506,220.00. The disclosure for this sale can be found here. In the last quarter, insiders sold 65,975 shares of company stock valued at $6,256,989. 6.60% of the stock is currently owned by corporate insiders.
Large investors have recently modified their holdings of the business. Acrospire Investment Management LLC bought a new position in shares of Arch Capital Group in the second quarter valued at approximately $112,000. Toronto Dominion Bank boosted its position in shares of Arch Capital Group by 18.8% in the second quarter. Toronto Dominion Bank now owns 1,596 shares of the insurance provider’s stock valued at $149,000 after acquiring an additional 253 shares during the period. Pacer Advisors Inc. bought a new position in shares of Arch Capital Group in the second quarter valued at approximately $197,000. CIBC World Markets Inc. bought a new position in shares of Arch Capital Group in the second quarter valued at approximately $208,000. Finally, Dynamic Technology Lab Private Ltd bought a new position in shares of Arch Capital Group in the second quarter valued at approximately $229,000. Hedge funds and other institutional investors own 79.43% of the company’s stock.
About Arch Capital Group
Arch Capital Group Ltd. provides insurance, reinsurance and mortgage insurance. The Company provides a range of property, casualty and mortgage insurance and reinsurance lines. The Company operates in five segments: insurance, reinsurance, mortgage, other and corporate. The insurance segment’s product lines include construction and national accounts; excess and surplus casualty; lenders products; professional lines; programs; property, energy, marine and aviation; travel, accident and health, and other.
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