Arch Capital Group (NASDAQ:ACGL) Shares Gap Down Following Analyst Downgrade

Arch Capital Group Ltd. (NASDAQ:ACGL)’s share price gapped down before the market opened on Monday after Bank of America lowered their price target on the stock from $143.00 to $136.00. The stock had previously closed at $101.83, but opened at $96.55. Bank of America currently has a buy rating on the stock. Arch Capital Group shares last traded at $96.54, with a volume of 127,243 shares.

Several other brokerages have also weighed in on ACGL. Keefe, Bruyette & Woods upped their target price on shares of Arch Capital Group from $120.00 to $121.00 and gave the stock an “outperform” rating in a research report on Wednesday, August 7th. Barclays initiated coverage on shares of Arch Capital Group in a report on Wednesday, September 4th. They issued an “equal weight” rating and a $120.00 price target on the stock. StockNews.com downgraded shares of Arch Capital Group from a “buy” rating to a “hold” rating in a report on Thursday, October 24th. BMO Capital Markets upped their price target on shares of Arch Capital Group from $98.00 to $104.00 and gave the company a “market perform” rating in a report on Wednesday, November 6th. Finally, Jefferies Financial Group upped their price target on shares of Arch Capital Group from $114.00 to $134.00 and gave the company a “buy” rating in a report on Wednesday, October 9th. Six investment analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, Arch Capital Group currently has a consensus rating of “Moderate Buy” and a consensus price target of $118.94.

Hedge Funds Weigh In On Arch Capital Group

Large investors have recently bought and sold shares of the stock. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in shares of Arch Capital Group by 245.1% in the 3rd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,053,739 shares of the insurance provider’s stock worth $341,652,000 after purchasing an additional 2,168,897 shares during the last quarter. Capital International Investors grew its stake in shares of Arch Capital Group by 61.1% in the 1st quarter. Capital International Investors now owns 4,112,577 shares of the insurance provider’s stock worth $380,167,000 after purchasing an additional 1,560,173 shares during the last quarter. Erste Asset Management GmbH acquired a new position in shares of Arch Capital Group in the 3rd quarter worth approximately $82,748,000. National Pension Service acquired a new position in shares of Arch Capital Group in the 3rd quarter worth approximately $64,271,000. Finally, International Assets Investment Management LLC grew its stake in shares of Arch Capital Group by 18,634.1% in the 3rd quarter. International Assets Investment Management LLC now owns 551,345 shares of the insurance provider’s stock worth $616,840,000 after purchasing an additional 548,402 shares during the last quarter. Institutional investors and hedge funds own 89.07% of the company’s stock.

Arch Capital Group Stock Performance

The firm’s fifty day simple moving average is $108.03 and its 200 day simple moving average is $103.36. The company has a market capitalization of $36.19 billion, a price-to-earnings ratio of 6.83, a PEG ratio of 1.47 and a beta of 0.61. The company has a debt-to-equity ratio of 0.17, a current ratio of 0.58 and a quick ratio of 0.58.

Arch Capital Group (NASDAQ:ACGL) last announced its earnings results on Wednesday, October 30th. The insurance provider reported $1.99 EPS for the quarter, topping the consensus estimate of $1.94 by $0.05. Arch Capital Group had a net margin of 33.86% and a return on equity of 18.94%. The company had revenue of $4.72 billion during the quarter, compared to analysts’ expectations of $4.05 billion. During the same period last year, the company posted $2.31 earnings per share. On average, sell-side analysts forecast that Arch Capital Group Ltd. will post 9.01 EPS for the current year.

Arch Capital Group Dividend Announcement

The business also recently declared a special dividend, which will be paid on Wednesday, December 4th. Investors of record on Monday, November 18th will be issued a dividend of $5.00 per share. The ex-dividend date is Monday, November 18th.

About Arch Capital Group

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.