Roth Capital Expects Reduced Earnings for Arch Capital Group

Arch Capital Group Ltd. (NASDAQ:ACGL) – Investment analysts at Roth Capital cut their FY2024 EPS estimates for Arch Capital Group in a report issued on Thursday, October 31st. Roth Capital analyst H. Fong now forecasts that the insurance provider will post earnings per share of $8.80 for the year, down from their prior estimate of $9.30. The consensus estimate for Arch Capital Group’s current full-year earnings is $9.12 per share. Roth Capital also issued estimates for Arch Capital Group’s Q3 2025 earnings at $1.86 EPS, Q4 2025 earnings at $2.59 EPS and Q2 2026 earnings at $2.78 EPS.

Arch Capital Group (NASDAQ:ACGL) last posted its quarterly earnings data 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 19.65%. The business had revenue of $4.72 billion during the quarter, compared to the consensus estimate of $4.05 billion. During the same period in the previous year, the firm posted $2.31 earnings per share.

A number of other equities analysts have also weighed in on the stock. Citigroup boosted their price target on shares of Arch Capital Group from $105.00 to $114.00 and gave the stock a “neutral” rating in a research report on Tuesday, September 10th. TD Cowen boosted their price target on shares of Arch Capital Group from $116.00 to $138.00 and gave the company a “buy” rating in a research note on Friday, September 20th. JPMorgan Chase & Co. upped their target price on shares of Arch Capital Group from $108.00 to $110.00 and gave the stock a “neutral” rating in a research note on Thursday, October 10th. Wells Fargo & Company increased their price objective on shares of Arch Capital Group from $110.00 to $126.00 and gave the company an “overweight” rating in a research report on Thursday, October 10th. Finally, StockNews.com cut shares of Arch Capital Group from a “buy” rating to a “hold” rating in a report on Thursday, October 24th. Five research analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the stock. According to MarketBeat.com, Arch Capital Group presently has an average rating of “Moderate Buy” and a consensus price target of $119.53.

Arch Capital Group Stock Down 6.3 %

ACGL opened at $98.56 on Friday. Arch Capital Group has a fifty-two week low of $72.85 and a fifty-two week high of $116.47. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.60 and a current ratio of 0.60. The company has a fifty day moving average of $110.69 and a two-hundred day moving average of $102.66. The stock has a market capitalization of $37.06 billion, a price-to-earnings ratio of 6.61, a PEG ratio of 1.94 and a beta of 0.59.

Insiders Place Their Bets

In other news, CFO Francois Morin sold 11,460 shares of the company’s stock in a transaction on Friday, August 16th. The stock was sold at an average price of $102.46, for a total value of $1,174,191.60. Following the sale, the chief financial officer now directly owns 221,779 shares in the company, valued at $22,723,476.34. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 4.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Arch Capital Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Wealth Enhancement Advisory Services LLC grew its stake in shares of Arch Capital Group by 32.0% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 25,982 shares of the insurance provider’s stock valued at $2,402,000 after buying an additional 6,306 shares in the last quarter. Sumitomo Mitsui Trust Holdings Inc. grew its stake in shares of Arch Capital Group by 0.4% in the first quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 1,015,428 shares of the insurance provider’s stock valued at $93,866,000 after buying an additional 4,446 shares in the last quarter. Norden Group LLC acquired a new stake in shares of Arch Capital Group in the first quarter valued at about $431,000. First Trust Direct Indexing L.P. grew its stake in shares of Arch Capital Group by 8.7% in the first quarter. First Trust Direct Indexing L.P. now owns 14,805 shares of the insurance provider’s stock valued at $1,369,000 after buying an additional 1,185 shares in the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. grew its stake in shares of Arch Capital Group by 6.3% in the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 94,729 shares of the insurance provider’s stock valued at $8,757,000 after buying an additional 5,607 shares in the last quarter. 89.07% of the stock is currently owned by institutional investors and hedge funds.

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.