Analysts’ Weekly Ratings Changes for Arch Capital Group (ACGL)

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Arch Capital Group (NASDAQ: ACGL) recently received a number of ratings updates from brokerages and research firms:

9/7/2016 – Arch Capital Group was upgraded by analysts at Goldman Sachs Group Inc. from a “sell” rating to a “neutral” rating. They now have a $79.00 price target on the stock, up previously from $66.00. They wrote, “management is willing to ramp up its sub-scale mortgage operations faster than previously expected” with the acquisition of American International Group Inc (NYSE: AIG)’s United Guaranty operations.The brokerage noted that the acquisition shows the willingness of the company to deploy significant capital to scale its mortgage insurance business faster than it could do so organically.”Our analysis implies that Arch could see approximately 10–50 percent of EPS accretion, which could increase Arch ROEs by approximately 50bps to 300bps, all else being equal,” analyst Michael Nannizzi wrote in a note.The brokerage said the shift to mortgage “would provide the company with an additional earnings lever not available to pure P&C peers.” Also, the company appears to be more willing to bypass organic growth via the usage of M&A.Related Link: Stocks Affected By Hurricane Season”Given market conditions and returns in MI are much more attractive than P&C more broadly, on a pro-forma basis a potentially scaled up MI platform could have a significant impact on earnings,” Nannizzi highlighted.Nannizzi also raised his price target to $79 from $66, equivalent to 1.4x 2Q17E book value (from 1.1x previously).”[W]e believe the company should garner a higher multiple as it continues to shift its business profile away from reinsurance and into mortgage insurance,”
9/7/2016 – Arch Capital Group was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $93.00 price target on the stock. According to Zacks, “Arch Capital Group Ltd. is a diversified financial services holding company, with an emphasis on the insurance sector. The Arch Capital Group is engaged in a range of insurance and financial service activities through subsidiaries comprising Arch Insurance Services and the ownership of intermediaries, underwriting agencies, service providers and insurance companies. “
8/30/2016 – Arch Capital Group had its price target raised by analysts at MKM Partners from $85.00 to $95.00. They now have a “buy” rating on the stock.
8/24/2016 – Arch Capital Group was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Arch Capital Group Ltd. is a diversified financial services holding company, with an emphasis on the insurance sector. The Arch Capital Group is engaged in a range of insurance and financial service activities through subsidiaries comprising Arch Insurance Services and the ownership of intermediaries, underwriting agencies, service providers and insurance companies. “
8/17/2016 – Arch Capital Group had its price target raised by analysts at Royal Bank Of Canada from $80.00 to $87.00. They now have an “outperform” rating on the stock.
8/17/2016 – Arch Capital Group had its “outperform” rating reaffirmed by analysts at RBC Capital Markets. They now have a $87.00 price target on the stock, up previously from $80.00.
8/17/2016 – Arch Capital Group had its price target raised by analysts at Keefe, Bruyette & Woods from $78.00 to $86.00. They now have a “market perform” rating on the stock.
8/5/2016 – Arch Capital Group had its price target raised by analysts at Keefe, Bruyette & Woods from $76.00 to $78.00. They now have a “market perform” rating on the stock.
8/2/2016 – Arch Capital Group was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $83.00 price target on the stock. According to Zacks, “Arch Capital Group Ltd. is a diversified financial services holding company, with an emphasis on the insurance sector. The Arch Capital Group is engaged in a range of insurance and financial service activities through subsidiaries comprising Arch Insurance Services and the ownership of intermediaries, underwriting agencies, service providers and insurance companies. “
7/29/2016 – Arch Capital Group had its price target raised by analysts at Deutsche Bank AG from $72.00 to $74.00. They now have a “hold” rating on the stock.
7/18/2016 – Arch Capital Group was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Arch Capital Group Ltd. is a diversified financial services holding company, with an emphasis on the insurance sector. The Arch Capital Group is engaged in a range of insurance and financial service activities through subsidiaries comprising Arch Insurance Services and the ownership of intermediaries, underwriting agencies, service providers and insurance companies. “

Shares of Arch Capital Group Ltd. (NASDAQ:ACGL) opened at 80.58 on Monday. The firm’s 50-day moving average price is $76.99 and its 200 day moving average price is $72.08. The firm has a market cap of $9.72 billion, a PE ratio of 20.83 and a beta of 0.57. Arch Capital Group Ltd. has a 52 week low of $59.83 and a 52 week high of $83.61.
Arch Capital Group (NASDAQ:ACGL) last posted its quarterly earnings results on Wednesday, July 27th. The company reported $1.13 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.96 by $0.17. Arch Capital Group had a net margin of 12.27% and a return on equity of 8.32%. During the same period in the prior year, the firm earned $1.16 EPS. Equities analysts anticipate that Arch Capital Group Ltd. will post $4.32 EPS for the current year.

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In other Arch Capital Group news, CEO Constantine Iordanou sold 50,000 shares of the stock in a transaction on Monday, August 29th. The shares were sold at an average price of $79.50, for a total transaction of $3,975,000.00. Following the transaction, the chief executive officer now directly owns 243,030 shares of the company’s stock, valued at $19,320,885. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Mark Donald Lyons sold 4,812 shares of the stock in a transaction on Tuesday, August 30th. The stock was sold at an average price of $80.34, for a total transaction of $386,596.08. The disclosure for this sale can be found here. 6.30% of the stock is currently owned by insiders.
Arch Capital Group Ltd. writes insurance and reinsurance on worldwide basis. The Company operates in five segments: insurance, reinsurance, mortgage, other and corporate. The Company’s insurance, reinsurance and mortgage segments are underwriting segments. The insurance segment’s product lines include construction and national accounts; excess and surplus casualty; lenders products; professional lines; programs; property, energy, marine and aviation; travel, accident and health, and other, which includes alternative market risks and excess workers’ compensation.

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