Arch Capital Group (NASDAQ:ACGL) Given New $115.00 Price Target at Royal Bank Of Canada

Arch Capital Group (NASDAQ:ACGL) had its price objective raised by analysts at Royal Bank Of Canada from $108.00 to $115.00 in a research note issued on Wednesday,Benzinga reports. The brokerage currently has an “outperform” rating on the insurance provider’s stock. Royal Bank Of Canada’s price target suggests a potential upside of 18.26% from the company’s current price.

Other equities research analysts have also recently issued reports about the stock. Keefe, Bruyette & Woods increased their target price on shares of Arch Capital Group from $100.00 to $102.00 and gave the company a “market perform” rating in a research report on Tuesday, January 6th. JPMorgan Chase & Co. upped their price objective on shares of Arch Capital Group from $111.00 to $117.00 and gave the company a “neutral” rating in a report on Wednesday, January 7th. Barclays set a $104.00 target price on shares of Arch Capital Group and gave the company an “equal weight” rating in a report on Thursday, January 8th. Cantor Fitzgerald reiterated an “overweight” rating and issued a $97.00 target price (up previously from $93.00) on shares of Arch Capital Group in a report on Wednesday, January 14th. Finally, Weiss Ratings upgraded shares of Arch Capital Group from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, February 4th. Nine analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $108.20.

Arch Capital Group Stock Performance

Shares of NASDAQ:ACGL traded down $0.61 during trading on Wednesday, hitting $97.25. The stock had a trading volume of 682,221 shares, compared to its average volume of 2,214,642. Arch Capital Group has a 12-month low of $82.44 and a 12-month high of $103.39. The company has a quick ratio of 0.55, a current ratio of 0.55 and a debt-to-equity ratio of 0.13. The stock has a market capitalization of $35.26 billion, a price-to-earnings ratio of 8.36, a price-to-earnings-growth ratio of 2.02 and a beta of 0.42. The stock has a 50-day simple moving average of $94.73 and a two-hundred day simple moving average of $91.69.

Arch Capital Group (NASDAQ:ACGL) last issued its quarterly earnings data on Monday, February 9th. The insurance provider reported $2.98 earnings per share for the quarter, topping analysts’ consensus estimates of $2.34 by $0.64. The business had revenue of $3.80 billion during the quarter, compared to the consensus estimate of $3.94 billion. Arch Capital Group had a net margin of 22.07% and a return on equity of 17.00%. During the same quarter in the prior year, the firm posted $2.26 earnings per share. On average, equities research analysts expect that Arch Capital Group will post 8.42 earnings per share for the current fiscal year.

Insider Activity at Arch Capital Group

In related news, insider John M. Pasquesi sold 8,800 shares of Arch Capital Group stock in a transaction that occurred on Monday, December 15th. The stock was sold at an average price of $94.17, for a total transaction of $828,696.00. Following the completion of the transaction, the insider directly owned 289,556 shares in the company, valued at $27,267,488.52. The trade was a 2.95% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Francois Morin sold 8,000 shares of the stock in a transaction on Friday, November 28th. The shares were sold at an average price of $94.62, for a total value of $756,960.00. Following the sale, the chief financial officer owned 266,681 shares in the company, valued at approximately $25,233,356.22. This trade represents a 2.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 220,666 shares of company stock valued at $20,728,673 over the last three months. Insiders own 4.10% of the company’s stock.

Hedge Funds Weigh In On Arch Capital Group

A number of institutional investors have recently modified their holdings of the company. Vanguard Group Inc. boosted its stake in Arch Capital Group by 1.2% in the 2nd quarter. Vanguard Group Inc. now owns 42,414,557 shares of the insurance provider’s stock worth $3,861,845,000 after buying an additional 493,583 shares during the last quarter. Artisan Partners Limited Partnership raised its holdings in Arch Capital Group by 1.7% in the second quarter. Artisan Partners Limited Partnership now owns 23,833,290 shares of the insurance provider’s stock valued at $2,170,021,000 after buying an additional 408,950 shares during the period. WCM Investment Management LLC grew its stake in Arch Capital Group by 1.3% during the third quarter. WCM Investment Management LLC now owns 13,525,402 shares of the insurance provider’s stock worth $1,214,987,000 after buying an additional 171,693 shares during the period. Geode Capital Management LLC grew its position in Arch Capital Group by 1.1% in the second quarter. Geode Capital Management LLC now owns 10,502,003 shares of the insurance provider’s stock valued at $952,523,000 after acquiring an additional 115,465 shares in the last quarter. Finally, JPMorgan Chase & Co. lifted its position in shares of Arch Capital Group by 4.6% during the third quarter. JPMorgan Chase & Co. now owns 8,190,927 shares of the insurance provider’s stock worth $743,168,000 after purchasing an additional 360,626 shares in the last quarter. Institutional investors and hedge funds own 89.07% of the company’s stock.

Key Stories Impacting Arch Capital Group

Here are the key news stories impacting Arch Capital Group this week:

• Positive Sentiment: Q4 beat on profitability: Arch reported $2.98 EPS, well above consensus, driven by solid underwriting margins and investment income; management highlighted stronger income and a higher return on equity. Q4 Press Release
• Positive Sentiment: Underwriting strength and management tone: Multiple write-ups and the earnings call emphasize measured, disciplined underwriting and management confidence — factors supportive of durable earnings and capital returns. Earnings Highlights
• Positive Sentiment: Analyst upgrade/target lift: Wells Fargo raised its price target to $109 and set an Overweight rating, implying material upside from current levels — a near-term positive catalyst for investor sentiment. Analyst Note
• Neutral Sentiment: Revenue vs. estimates: Revenue came in slightly below consensus ($3.80B vs. ~$3.94B), suggesting underlying premium growth/trend questions even as profitability rose. Earnings Summary
• Neutral Sentiment: Market-relative performance: MarketWatch notes the stock has underperformed peers on a recent daily basis despite gains from the quarter — investors may be weighing sector dynamics and comparables. Relative Performance
• Negative Sentiment: Rising short interest: Short interest rose in late January to ~7.05M shares (?2.0% of float) with a short-interest ratio near 2.7 days — increased shorting can add downward pressure or amplify volatility. (internal short-interest report)

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.