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

Arch Capital Group (NASDAQ:ACGL) issued its quarterly earnings data on Tuesday. The insurance provider reported $2.56 earnings per share for the quarter, beating analysts’ consensus estimates of $2.47 by $0.09, Zacks reports. The business had revenue of $8.72 billion for the quarter, compared to analysts’ expectations of $4.36 billion. Arch Capital Group had a net margin of 24.64% and a return on equity of 17.61%.

Arch Capital Group Trading Up 2.5%

Arch Capital Group stock traded up $2.60 during midday trading on Tuesday, reaching $106.48. The stock had a trading volume of 2,062,308 shares, compared to its average volume of 2,137,119. Arch Capital Group has a twelve month low of $82.44 and a twelve 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. The firm has a market cap of $37.20 billion, a price-to-earnings ratio of 8.18, a PEG ratio of 5.15 and a beta of 0.31. The firm’s fifty day simple moving average is $95.97 and its two-hundred day simple moving average is $95.89.

Analyst Ratings Changes

Several research firms have commented on ACGL. Weiss Ratings cut shares of Arch Capital Group from a “buy (b)” rating to a “buy (b-)” rating in a research note on Monday, May 18th. Mizuho raised their price objective on shares of Arch Capital Group from $101.00 to $104.00 and gave the company a “neutral” rating in a research note on Thursday, July 9th. Cantor Fitzgerald restated a “neutral” rating and issued a $102.00 target price (up from $100.00) on shares of Arch Capital Group in a research report on Thursday, July 9th. Morgan Stanley increased their price target on Arch Capital Group from $105.00 to $110.00 and gave the company an “overweight” rating in a research note on Monday, July 6th. Finally, Wells Fargo & Company upped their price objective on Arch Capital Group from $110.00 to $114.00 and gave the company an “overweight” rating in a report on Thursday, July 9th. Eight research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $109.82.

Insiders Place Their Bets

In other Arch Capital Group news, Director Daniel Joseph Houston purchased 5,300 shares of the company’s stock in a transaction that occurred on Thursday, April 30th. The shares were purchased at an average cost of $94.08 per share, with a total value of $498,624.00. Following the completion of the transaction, the director owned 9,915 shares of the company’s stock, valued at approximately $932,803.20. This represents a 114.84% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Brian S. Posner sold 3,000 shares of the stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $19.66, for a total value of $58,980.00. Additional details regarding this sale are available in the official SEC disclosure. 3.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Arch Capital Group

A number of large investors have recently made changes to their positions in ACGL. Transamerica Financial Advisors LLC boosted its holdings in shares of Arch Capital Group by 12.7% during the second quarter. Transamerica Financial Advisors LLC now owns 1,245 shares of the insurance provider’s stock worth $113,000 after purchasing an additional 140 shares during the period. Zacks Investment Management boosted its stake in shares of Arch Capital Group by 0.4% during the 4th quarter. Zacks Investment Management now owns 33,707 shares of the insurance provider’s stock valued at $3,233,000 after buying an additional 146 shares during the period. Keel Point LLC grew its holdings in shares of Arch Capital Group by 7.8% during the 2nd quarter. Keel Point LLC now owns 2,412 shares of the insurance provider’s stock valued at $220,000 after acquiring an additional 175 shares in the last quarter. UMB Bank n.a. increased its stake in shares of Arch Capital Group by 25.5% in the fourth quarter. UMB Bank n.a. now owns 887 shares of the insurance provider’s stock worth $85,000 after acquiring an additional 180 shares during the last quarter. Finally, NorthRock Partners LLC increased its stake in shares of Arch Capital Group by 4.7% in the third quarter. NorthRock Partners LLC now owns 4,130 shares of the insurance provider’s stock worth $375,000 after acquiring an additional 186 shares during the last quarter. Institutional investors and hedge funds own 89.07% of the company’s stock.

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.