Arch Capital Group (NASDAQ:ACGL) Posts Quarterly Earnings Results, Beats Estimates By $0.09 EPS

Arch Capital Group (NASDAQ:ACGL) posted its quarterly earnings results on Tuesday. The insurance provider reported $2.56 earnings per share for the quarter, topping the consensus estimate of $2.47 by $0.09, Zacks reports. Arch Capital Group had a return on equity of 17.61% and a net margin of 24.64%.The company had revenue of $8.72 billion for the quarter, compared to the consensus estimate of $4.36 billion.

Arch Capital Group Stock Performance

Arch Capital Group stock traded up $2.60 during midday trading on Tuesday, reaching $106.48. 2,062,308 shares of the company traded hands, compared to its average volume of 2,137,192. The firm has a market capitalization of $37.20 billion, a price-to-earnings ratio of 8.18, a price-to-earnings-growth ratio of 5.15 and a beta of 0.31. The business has a 50 day moving average of $95.97 and a two-hundred day moving average of $95.89. Arch Capital Group has a 12 month low of $82.44 and a 12 month high of $107.09. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.55 and a quick ratio of 0.55.

Insider Activity at Arch Capital Group

In related news, Director Daniel Joseph Houston bought 5,300 shares of the firm’s stock in a transaction on Thursday, April 30th. The stock was acquired at an average cost of $94.08 per share, for a total transaction of $498,624.00. Following the purchase, the director owned 9,915 shares in the company, valued at approximately $932,803.20. This represents a 114.84% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Brian S. Posner sold 3,000 shares of the stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $19.66, for a total value of $58,980.00. The disclosure for this sale is available in the SEC filing. Company insiders own 3.30% of the company’s stock.

Institutional Trading of Arch Capital Group

Several large investors have recently modified their holdings of the company. AQR Capital Management LLC boosted its position in Arch Capital Group by 184.1% in the fourth quarter. AQR Capital Management LLC now owns 2,670,628 shares of the insurance provider’s stock worth $256,167,000 after purchasing an additional 1,730,487 shares during the last quarter. Ameriprise Financial Inc. increased its position in shares of Arch Capital Group by 289.1% during the 2nd quarter. Ameriprise Financial Inc. now owns 1,368,648 shares of the insurance provider’s stock valued at $124,615,000 after purchasing an additional 1,016,919 shares during the last quarter. Two Sigma Investments LP lifted its stake in shares of Arch Capital Group by 112.4% in the 3rd quarter. Two Sigma Investments LP now owns 1,895,222 shares of the insurance provider’s stock worth $171,953,000 after purchasing an additional 1,003,004 shares during the period. UBS Group AG lifted its stake in shares of Arch Capital Group by 56.4% in the 3rd quarter. UBS Group AG now owns 2,738,518 shares of the insurance provider’s stock worth $248,466,000 after purchasing an additional 987,398 shares during the period. Finally, Marshall Wace LLP lifted its stake in shares of Arch Capital Group by 3,918.3% in the 3rd quarter. Marshall Wace LLP now owns 934,287 shares of the insurance provider’s stock worth $84,768,000 after purchasing an additional 911,036 shares during the period. Institutional investors own 89.07% of the company’s stock.

Analyst Ratings Changes

ACGL has been the subject of a number of recent research reports. Citigroup lifted their price objective on Arch Capital Group from $120.00 to $122.50 and gave the company a “buy” rating in a research note on Thursday, April 30th. UBS Group restated a “buy” rating and set a $120.00 price target (up from $114.00) on shares of Arch Capital Group in a report on Wednesday, July 8th. Barclays lifted their price target on Arch Capital Group from $104.00 to $106.00 and gave the stock an “equal weight” rating in a research report on Wednesday, April 8th. Morgan Stanley upped their price target on shares of Arch Capital Group from $105.00 to $110.00 and gave the stock an “overweight” rating in a research note on Monday, July 6th. Finally, JPMorgan Chase & Co. raised their price objective on shares of Arch Capital Group from $110.00 to $116.00 and gave the company a “neutral” rating in a research note on Monday, July 20th. Eight analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $109.82.

Arch Capital Group Company Profile

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.