Zacks Research Expects Lower Earnings for Arch Capital Group

Arch Capital Group Ltd. (NASDAQ:ACGL) – Analysts at Zacks Research cut their Q1 2026 EPS estimates for shares of Arch Capital Group in a research report issued on Monday, March 30th. Zacks Research analyst Team now forecasts that the insurance provider will post earnings per share of $2.42 for the quarter, down from their previous forecast of $2.43. The consensus estimate for Arch Capital Group’s current full-year earnings is $8.42 per share. Zacks Research also issued estimates for Arch Capital Group’s FY2026 earnings at $9.33 EPS, FY2027 earnings at $10.06 EPS and FY2028 earnings at $11.32 EPS.

Arch Capital Group (NASDAQ:ACGL) last released its quarterly earnings data on Monday, February 9th. The insurance provider reported $2.98 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.34 by $0.64. The company had revenue of $4.93 billion during the quarter, compared to analysts’ expectations of $3.94 billion. Arch Capital Group had a net margin of 22.07% and a return on equity of 16.73%. During the same period in the previous year, the company earned $2.26 EPS.

Several other brokerages have also recently issued reports on ACGL. Evercore set a $100.00 price objective on Arch Capital Group and gave the stock an “in-line” rating in a research note on Wednesday, January 7th. Weiss Ratings upgraded Arch Capital Group from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, February 4th. Roth Mkm set a $110.00 price target on Arch Capital Group and gave the stock a “buy” rating in a research report on Tuesday, December 2nd. Royal Bank Of Canada raised their price target on Arch Capital Group from $108.00 to $115.00 and gave the company an “outperform” rating in a research note on Wednesday, February 11th. Finally, Citigroup reaffirmed a “buy” rating and issued a $120.00 price objective (up from $113.00) on shares of Arch Capital Group in a research note on Friday, February 13th. Nine analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $109.20.

Arch Capital Group Stock Performance

Shares of NASDAQ:ACGL opened at $95.62 on Tuesday. The firm’s 50 day simple moving average is $96.34 and its 200-day simple moving average is $93.21. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.53 and a current ratio of 0.53. Arch Capital Group has a one year low of $82.44 and a one year high of $103.39. The firm has a market cap of $34.07 billion, a PE ratio of 8.23, a price-to-earnings-growth ratio of 3.80 and a beta of 0.40.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in ACGL. Daymark Wealth Partners LLC grew its stake in shares of Arch Capital Group by 3.4% during the fourth quarter. Daymark Wealth Partners LLC now owns 3,211 shares of the insurance provider’s stock worth $308,000 after acquiring an additional 106 shares during the last quarter. Crescent Grove Advisors LLC raised its position in shares of Arch Capital Group by 3.1% in the 2nd quarter. Crescent Grove Advisors LLC now owns 3,702 shares of the insurance provider’s stock valued at $337,000 after purchasing an additional 112 shares during the last quarter. Keel Point LLC boosted its stake in Arch Capital Group by 4.6% in the 3rd quarter. Keel Point LLC now owns 2,524 shares of the insurance provider’s stock worth $229,000 after purchasing an additional 112 shares in the last quarter. Legacy Advisors LLC grew its position in Arch Capital Group by 1.2% during the 4th quarter. Legacy Advisors LLC now owns 9,551 shares of the insurance provider’s stock worth $916,000 after purchasing an additional 112 shares during the last quarter. Finally, J.W. Cole Advisors Inc. grew its position in Arch Capital Group by 4.4% during the 2nd quarter. J.W. Cole Advisors Inc. now owns 3,025 shares of the insurance provider’s stock worth $275,000 after purchasing an additional 127 shares during the last quarter. 89.07% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other news, Director Brian S. Posner sold 3,000 shares of the company’s stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $17.11, for a total transaction of $51,330.00. Following the transaction, the director directly owned 2,000 shares of the company’s stock, valued at approximately $34,220. This represents a 60.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Maamoun Rajeh sold 47,430 shares of the stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $96.12, for a total value of $4,558,971.60. Following the sale, the insider owned 433,589 shares of the company’s stock, valued at approximately $41,676,574.68. This represents a 9.86% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 78,267 shares of company stock valued at $7,291,637 in the last ninety days. 4.10% of the stock is currently owned by insiders.

About Arch Capital Group

Arch Capital Group Ltd. (NASDAQ: ACGL) is a Bermuda-based insurance and reinsurance holding company that underwrites a broad range of property and casualty, mortgage, and specialty risk products. The company operates through a group of underwriting subsidiaries and platforms to provide insurance, reinsurance and related risk solutions tailored to commercial, institutional and individual clients.

Arch’s product mix includes treaty and facultative reinsurance, primary casualty and property insurance, mortgage insurance and other specialty lines.