Arch Capital Group (ACGL) Rating Lowered to Strong Sell at ValuEngine

Arch Capital Group (NASDAQ:ACGL) was downgraded by investment analysts at ValuEngine from a “sell” rating to a “strong sell” rating in a note issued to investors on Friday.

A number of other brokerages have also issued reports on ACGL. Wells Fargo set a $96.00 target price on Arch Capital Group and gave the company a “hold” rating in a research report on Monday, February 12th. Keefe, Bruyette & Woods raised Arch Capital Group from a “market perform” rating to an “outperform” rating in a research report on Thursday, March 22nd. BidaskClub raised Arch Capital Group from a “sell” rating to a “hold” rating in a research report on Friday, March 30th. Finally, TheStreet lowered Arch Capital Group from a “b” rating to a “c” rating in a research report on Tuesday, May 1st. Two equities research analysts have rated the stock with a sell rating, three have given a hold rating and four have assigned a buy rating to the company’s stock. Arch Capital Group has an average rating of “Hold” and an average target price of $103.50.

Shares of Arch Capital Group opened at $78.67 on Friday, according to MarketBeat. Arch Capital Group has a 52-week low of $77.12 and a 52-week high of $102.60. The company has a market capitalization of $10.70 billion, a price-to-earnings ratio of 24.51, a price-to-earnings-growth ratio of 1.13 and a beta of 0.63. The company has a current ratio of 0.52, a quick ratio of 0.52 and a debt-to-equity ratio of 0.34.

Arch Capital Group (NASDAQ:ACGL) last announced its earnings results on Tuesday, May 1st. The insurance provider reported $1.69 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.55 by $0.14. Arch Capital Group had a return on equity of 6.04% and a net margin of 9.41%. The company had revenue of $1.41 billion for the quarter, compared to analyst estimates of $1.19 billion. During the same period in the prior year, the company posted $1.42 EPS. Arch Capital Group’s quarterly revenue was up 10.7% on a year-over-year basis. sell-side analysts expect that Arch Capital Group will post 6.34 earnings per share for the current fiscal year.

In related news, CFO Mark Donald Lyons sold 6,000 shares of the company’s stock in a transaction that occurred on Thursday, March 15th. The stock was sold at an average price of $84.16, for a total transaction of $504,960.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Brian S. Posner purchased 3,000 shares of the company’s stock in a transaction that occurred on Thursday, May 3rd. The shares were purchased at an average cost of $78.63 per share, for a total transaction of $235,890.00. Following the completion of the transaction, the director now owns 24,439 shares in the company, valued at approximately $1,921,638.57. The disclosure for this purchase can be found here. Over the last three months, insiders have sold 24,000 shares of company stock worth $1,981,620. Corporate insiders own 5.10% of the company’s stock.

Hedge funds and other institutional investors have recently modified their holdings of the business. State of Alaska Department of Revenue increased its position in Arch Capital Group by 28.1% in the fourth quarter. State of Alaska Department of Revenue now owns 41,268 shares of the insurance provider’s stock worth $3,745,000 after buying an additional 9,060 shares during the period. Teacher Retirement System of Texas acquired a new stake in Arch Capital Group in the fourth quarter worth $3,332,000. American International Group Inc. increased its position in Arch Capital Group by 51.1% in the fourth quarter. American International Group Inc. now owns 7,768 shares of the insurance provider’s stock worth $705,000 after buying an additional 2,628 shares during the period. Victory Capital Management Inc. increased its position in Arch Capital Group by 141.2% in the fourth quarter. Victory Capital Management Inc. now owns 585,047 shares of the insurance provider’s stock worth $53,105,000 after buying an additional 342,497 shares during the period. Finally, Schwab Charles Investment Management Inc. increased its position in Arch Capital Group by 5.0% in the fourth quarter. Schwab Charles Investment Management Inc. now owns 273,416 shares of the insurance provider’s stock worth $24,818,000 after buying an additional 12,930 shares during the period. 77.61% of the stock is currently owned by hedge funds and other institutional investors.

About Arch Capital Group

Arch Capital Group Ltd., together with its subsidiaries, provides property, casualty, and mortgage insurance and reinsurance products worldwide. The company's Insurance segment offers primary and excess casualty coverages; loss sensitive primary casualty insurance programs; collateral protection, debt cancellation, and service contract reimbursement products; 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.

To view ValuEngine’s full report, visit ValuEngine’s official website.

Analyst Recommendations for Arch Capital Group (NASDAQ:ACGL)

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