Arch Capital Group (NASDAQ:ACGL)‘s stock had its “hold” rating reissued by investment analysts at Wells Fargo & Co in a research note issued on Tuesday. They presently have a $96.00 price objective on the insurance provider’s stock. Wells Fargo & Co’s target price would suggest a potential upside of 10.66% from the company’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.””
ACGL has been the topic of several other research reports. Barclays raised their price target on shares of Arch Capital Group from $91.00 to $95.00 and gave the company an “equal weight” rating in a research report on Monday, October 16th. UBS Group dropped their price target on shares of Arch Capital Group from $114.00 to $110.00 and set a “buy” rating on the stock in a research report on Tuesday, September 19th. BidaskClub lowered shares of Arch Capital Group from a “sell” rating to a “strong sell” rating in a research report on Thursday, December 21st. Zacks Investment Research lowered shares of Arch Capital Group from a “hold” rating to a “sell” rating in a research report on Tuesday, September 26th. Finally, Buckingham Research initiated coverage on shares of Arch Capital Group in a research report on Monday, September 11th. They set a “buy” rating and a $106.00 price target on the stock. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and five have assigned a buy rating to the company. The company has an average rating of “Hold” and an average target price of $100.40.
Shares of Arch Capital Group (ACGL) opened at $86.75 on Tuesday. The company has a market cap of $11,350.00, a price-to-earnings ratio of 28.07, a P/E/G ratio of 1.31 and a beta of 0.67. The company has a current ratio of 0.83, a quick ratio of 0.83 and a debt-to-equity ratio of 0.49. Arch Capital Group has a 52-week low of $85.83 and a 52-week high of $102.60.
Arch Capital Group (NASDAQ:ACGL) last released its quarterly earnings results on Wednesday, October 25th. The insurance provider reported ($0.79) EPS for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.59) by ($0.20). The firm had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.16 billion. Arch Capital Group had a net margin of 9.44% and a return on equity of 5.57%. The firm’s quarterly revenue was up 30.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.14 EPS. equities analysts expect that Arch Capital Group will post 3.15 EPS for the current year.
In other Arch Capital Group news, insider Louis T. Petrillo sold 5,921 shares of the stock in a transaction on Wednesday, December 13th. The shares were sold at an average price of $91.07, for a total transaction of $539,225.47. Following the transaction, the insider now directly owns 43,268 shares of the company’s stock, valued at $3,940,416.76. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO Nicolas Papadopoulo sold 54,554 shares of the stock in a transaction on 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 transaction, the chief executive officer now directly owns 147,481 shares in the company, valued at $14,088,859.93. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 65,975 shares of company stock worth $6,256,989. Insiders own 6.60% of the company’s stock.
Several large investors have recently bought and sold shares of ACGL. Acrospire Investment Management LLC purchased a new position in shares of Arch Capital Group in the second quarter worth about $112,000. Toronto Dominion Bank lifted its stake 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 worth $149,000 after buying an additional 253 shares in the last quarter. Pacer Advisors Inc. purchased a new position in shares of Arch Capital Group in the second quarter worth about $197,000. CIBC World Markets Inc. purchased a new position in shares of Arch Capital Group in the second quarter worth about $208,000. Finally, Dynamic Technology Lab Private Ltd purchased a new position in shares of Arch Capital Group in the second quarter worth about $229,000. 79.41% of the stock is currently owned by hedge funds and other institutional investors.
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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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