Roth Capital Weighs in on Arch Capital Group Ltd.’s FY2024 Earnings (NASDAQ:ACGL)

Arch Capital Group Ltd. (NASDAQ:ACGL) – Investment analysts at Roth Capital lifted their FY2024 earnings estimates for shares of Arch Capital Group in a note issued to investors on Tuesday, April 30th. Roth Capital analyst H. Fong now forecasts that the insurance provider will earn $9.30 per share for the year, up from their prior forecast of $8.25. The consensus estimate for Arch Capital Group’s current full-year earnings is $8.40 per share. Roth Capital also issued estimates for Arch Capital Group’s Q4 2024 earnings at $2.56 EPS, Q4 2025 earnings at $2.94 EPS and FY2025 earnings at $10.30 EPS.

Arch Capital Group (NASDAQ:ACGL) last posted its earnings results on Monday, April 29th. The insurance provider reported $2.45 earnings per share for the quarter, beating analysts’ consensus estimates of $2.06 by $0.39. Arch Capital Group had a return on equity of 21.85% and a net margin of 33.65%. The company had revenue of $4.09 billion for the quarter, compared to analyst estimates of $3.77 billion. During the same quarter last year, the company earned $1.73 earnings per share. The company’s revenue for the quarter was up 19.3% on a year-over-year basis.

Several other equities analysts have also recently commented on ACGL. Royal Bank of Canada reissued an “outperform” rating and set a $98.00 target price on shares of Arch Capital Group in a research report on Friday, February 16th. Wells Fargo & Company raised their target price on Arch Capital Group from $109.00 to $110.00 and gave the stock an “overweight” rating in a research report on Wednesday. TD Cowen assumed coverage on Arch Capital Group in a research report on Wednesday, January 10th. They issued an “outperform” rating and a $96.00 target price for the company. JPMorgan Chase & Co. lifted their price target on Arch Capital Group from $88.00 to $92.00 and gave the company a “neutral” rating in a research report on Monday, April 8th. Finally, UBS Group reduced their price target on Arch Capital Group from $101.00 to $97.00 and set a “buy” rating for the company in a research report on Wednesday, January 10th. Four investment analysts have rated the stock with a hold rating and eleven have given a buy rating to the stock. According to MarketBeat.com, Arch Capital Group has a consensus rating of “Moderate Buy” and an average target price of $100.67.

Arch Capital Group Price Performance

ACGL opened at $94.41 on Thursday. The firm’s fifty day moving average price is $91.01 and its two-hundred day moving average price is $84.71. The company has a market capitalization of $35.42 billion, a price-to-earnings ratio of 7.45, a P/E/G ratio of 1.14 and a beta of 0.57. The company has a debt-to-equity ratio of 0.17, a current ratio of 0.59 and a quick ratio of 0.57. Arch Capital Group has a 1 year low of $69.05 and a 1 year high of $96.58.

Insider Activity at Arch Capital Group

In related news, CEO Maamoun Rajeh sold 50,000 shares of the business’s stock in a transaction dated Tuesday, March 5th. The stock was sold at an average price of $87.48, for a total transaction of $4,374,000.00. Following the transaction, the chief executive officer now owns 336,170 shares in the company, valued at approximately $29,408,151.60. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. In other Arch Capital Group news, insider Nicolas Papadopoulo sold 60,000 shares of the company’s stock in a transaction that occurred on Thursday, March 7th. The stock was sold at an average price of $87.52, for a total transaction of $5,251,200.00. Following the transaction, the insider now owns 651,931 shares in the company, valued at approximately $57,057,001.12. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Maamoun Rajeh sold 50,000 shares of the company’s stock in a transaction that occurred on Tuesday, March 5th. The stock was sold at an average price of $87.48, for a total value of $4,374,000.00. Following the transaction, the chief executive officer now owns 336,170 shares in the company, valued at approximately $29,408,151.60. The disclosure for this sale can be found here. Insiders have sold a total of 135,689 shares of company stock worth $11,872,217 in the last 90 days. Company insiders own 4.20% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Householder Group Estate & Retirement Specialist LLC purchased a new position in shares of Arch Capital Group during the 4th quarter worth approximately $27,000. Larson Financial Group LLC bought a new stake in shares of Arch Capital Group in the 4th quarter worth approximately $30,000. Richardson Financial Services Inc. bought a new stake in shares of Arch Capital Group in the 4th quarter worth approximately $33,000. CVA Family Office LLC bought a new stake in shares of Arch Capital Group in the 4th quarter worth approximately $47,000. Finally, Indiana Trust & Investment Management CO bought a new stake in shares of Arch Capital Group in the 1st quarter worth approximately $58,000. Hedge funds and other institutional investors own 89.07% of the company’s stock.

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.