Arch Capital Group Ltd. (NASDAQ:ACGL) Receives $118.00 Consensus Price Target from Brokerages

Arch Capital Group Ltd. (NASDAQ:ACGL) has received a consensus price target of $118.00 from various analysts following its performance in the market. According to MarketBeat.com, the stock has achieved an average rating of "Moderate Buy" from a team of fifteen analysts tracking the company. Of these analysts, five have rated the stock as a hold, while ten have given a buy recommendation.

Over the past year, brokers have continued to reassess their outlook on Arch Capital Group's shares. For instance, Bank of America recently lowered its price target from $143.00 to $136.00, maintaining a "buy" rating for the stock. Meanwhile, Wells Fargo & Company also adjusted its target, decreasing it from $107.00 to $106.00 with an "overweight" rating attached. StockNews.com took a cautionary approach, downgrading the stock from a "buy" to a "hold" rating. Royal Bank of Canada set its target price for Arch Capital Group at $110.00, down from a previous estimate of $125.00, while JPMorgan Chase & Co. decreased its target from $110.00 to $106.00, giving it a "neutral" rating.

Recent Trading Activity of Arch Capital Group

On Tuesday, shares of Arch Capital Group opened at $90.16, showing a 2.2% increase within the day. The stock has seen fluctuations over the past year, with a 52-week low of $83.91 and a high of $116.47. Arch Capital Group holds a market capitalization of $33.92 billion and exhibits a P/E ratio of 6.05, suggesting a promising earning potential. Furthermore, it has a price-to-earnings-growth ratio of 1.53 and a beta value of 0.64, indicating relative stability compared to the overall market.

The company's recent quarterly earnings report demonstrated positive results. For the quarter ending on February 10th, Arch Capital Group reported earnings of $2.26 per share, surpassing analysts' expectations of $1.90 by $0.36. The company's net margin stood at an impressive 33.86%, while return on equity was reported at 18.94%. These figures are notable, especially when comparing them to the previous year's earnings per share of $2.45. Looking ahead, analysts forecast that Arch Capital Group will post earnings per share of $8.86 for the current year.

Institutional Investor Activity

Recent activities among institutional investors also reflect growing interest in Arch Capital Group. Vanguard Group Inc. has slightly increased its holdings by 0.4% in the fourth quarter, now owning approximately 41.99 million shares valued at about $3.88 billion after acquiring an additional 182,150 shares. State Street Corp. has raised its stake by 1.1% during the third quarter, managing 16.59 million shares worth approximately $1.86 billion. Similarly, Geode Capital Management LLC and Principal Financial Group Inc. have raised their stakes, with Principal Financial increasing by 10.5% in the fourth quarter, owning around 8.22 million shares valued at $759 million. Overall, institutional investors control 89.07% of Arch Capital Group's stock, illustrating a strong institutional backing for the company.

Overview of Arch Capital Group

Arch Capital Group Ltd., along with its subsidiaries, provides a range of insurance, reinsurance, and mortgage insurance products globally. The insurance segment of the company offers various coverages, including primary and excess casualty insurance, loss-sensitive casualty insurance programs, and directors' liability insurance, among others. The diverse range of services positions Arch Capital Group as a competitive player in the financial services sector.

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