Roth Capital Issues Pessimistic Outlook for ACGL Earnings

Arch Capital Group Ltd. (NASDAQ:ACGL) – Stock analysts at Roth Capital reduced their Q4 2024 earnings per share estimates for shares of Arch Capital Group in a research note issued on Thursday, October 31st. Roth Capital analyst H. Fong now forecasts that the insurance provider will post earnings of $1.79 per share for the quarter, down from their previous estimate of $2.50. The consensus estimate for Arch Capital Group’s current full-year earnings is $9.09 per share. Roth Capital also issued estimates for Arch Capital Group’s Q1 2025 earnings at $2.36 EPS, Q2 2025 earnings at $2.43 EPS, FY2025 earnings at $9.25 EPS, Q1 2026 earnings at $2.71 EPS, Q3 2026 earnings at $2.08 EPS and FY2026 earnings at $10.50 EPS.

Arch Capital Group (NASDAQ:ACGL) last released its earnings results on Wednesday, October 30th. The insurance provider reported $1.99 earnings per share for the quarter, beating the consensus estimate of $1.94 by $0.05. Arch Capital Group had a return on equity of 18.94% and a net margin of 33.86%. The company had revenue of $4.72 billion for the quarter, compared to analysts’ expectations of $4.05 billion. During the same quarter in the previous year, the business posted $2.31 EPS.

Other equities research analysts have also recently issued research reports about the company. Wells Fargo & Company lowered their price target on Arch Capital Group from $126.00 to $118.00 and set an “overweight” rating for the company in a research note on Monday. StockNews.com cut Arch Capital Group from a “buy” rating to a “hold” rating in a research report on Thursday, October 24th. Barclays started coverage on shares of Arch Capital Group in a research note on Wednesday, September 4th. They issued an “equal weight” rating and a $120.00 price objective for the company. Citigroup boosted their price objective on Arch Capital Group from $105.00 to $114.00 and gave the stock a “neutral” rating in a research report on Tuesday, September 10th. Finally, JPMorgan Chase & Co. upped their target price on shares of Arch Capital Group from $108.00 to $110.00 and gave the company a “neutral” rating in a research note on Thursday, October 10th. Five investment analysts have rated the stock with a hold rating and eleven have given a buy rating to the stock. According to MarketBeat, Arch Capital Group currently has an average rating of “Moderate Buy” and a consensus price target of $119.87.

Arch Capital Group Stock Performance

Shares of ACGL stock opened at $96.50 on Monday. Arch Capital Group has a fifty-two week low of $72.85 and a fifty-two week high of $116.47. The stock’s 50-day moving average is $110.14 and its two-hundred day moving average is $102.90. The company has a debt-to-equity ratio of 0.17, a current ratio of 0.58 and a quick ratio of 0.60. The firm has a market cap of $36.29 billion, a P/E ratio of 6.48, a PEG ratio of 1.38 and a beta of 0.61.

Hedge Funds Weigh In On Arch Capital Group

Several large investors have recently made changes to their positions in the company. UMB Bank n.a. acquired a new stake in shares of Arch Capital Group during the 2nd quarter worth approximately $30,000. Baldwin Brothers LLC MA grew its holdings in Arch Capital Group by 50.7% during the 2nd quarter. Baldwin Brothers LLC MA now owns 309 shares of the insurance provider’s stock worth $31,000 after acquiring an additional 104 shares during the period. Rothschild Investment LLC bought a new stake in shares of Arch Capital Group during the 2nd quarter valued at $35,000. LRI Investments LLC acquired a new position in shares of Arch Capital Group in the 1st quarter valued at $38,000. Finally, Versant Capital Management Inc boosted its position in shares of Arch Capital Group by 40.3% in the 2nd quarter. Versant Capital Management Inc now owns 456 shares of the insurance provider’s stock worth $46,000 after purchasing an additional 131 shares during the last quarter. Institutional investors and hedge funds own 89.07% of the company’s stock.

Insider Transactions at Arch Capital Group

In related news, CFO Francois Morin sold 11,460 shares of the firm’s stock in a transaction that occurred on Friday, August 16th. The shares were sold at an average price of $102.46, for a total value of $1,174,191.60. Following the completion of the sale, the chief financial officer now owns 221,779 shares of the company’s stock, valued at $22,723,476.34. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Company insiders own 4.00% of the company’s stock.

Arch Capital Group Company Profile

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