Latest news with #ACGL
Business Insider
6 days ago
- Business
- Business Insider
Evercore ISI Sticks to Its Hold Rating for Arch Capital Group (ACGL)
In a report released yesterday, David Motemaden from Evercore ISI maintained a Hold rating on Arch Capital Group (ACGL – Research Report), with a price target of $104.00. Protect Your Portfolio Against Market Uncertainty According to TipRanks, Motemaden is a 5-star analyst with an average return of 11.2% and a 70.23% success rate. Motemaden covers the Financial sector, focusing on stocks such as Chubb, Arthur J Gallagher & Co, and Arch Capital Group. In addition to Evercore ISI, Arch Capital Group also received a Hold from Barclays's Alex Scott in a report issued yesterday. However, on the same day, JMP Securities reiterated a Buy rating on Arch Capital Group (NASDAQ: ACGL). Based on Arch Capital Group's latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $4.51 billion and a net profit of $935 million. In comparison, last year the company earned a revenue of $3.87 billion and had a net profit of $2.33 billion Based on the recent corporate insider activity of 40 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ACGL in relation to earlier this year. Most recently, in March 2025, Louis Petrillo, the Subsid. Officer of ACGL sold 21,000.00 shares for a total of $1,927,262.00.
Business Insider
6 days ago
- Business
- Business Insider
Analysts' Top Financial Picks: Visa (V), Arch Capital Group (ACGL)
There's a lot to be optimistic about in the Financial sector as 2 analysts just weighed in on Visa (V – Research Report) and Arch Capital Group (ACGL – Research Report) with bullish sentiments. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Arch Capital Group (ACGL) In a report released yesterday, Joshua Shanker from Bank of America Securities maintained a Buy rating on Arch Capital Group. The company's shares closed last Wednesday at $90.68, close to its 52-week low of $87.42. According to Shanker is a 5-star analyst with an average return of 8.1% and a 58.9% success rate. Shanker covers the Financial sector, focusing on stocks such as American International Group, Corebridge Financial, Inc., and Marsh & Mclennan Companies. Arch Capital Group has an analyst consensus of Strong Buy, with a price target consensus of $111.08, which is a 25.6% upside from current levels. In a report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $125.00 price target.
Yahoo
19-05-2025
- Business
- Yahoo
Arch Capital Trades Above 50-Day SMA: Time to Hold ACGL Stock?
Arch Capital Group Ltd. ACGL has been trading above its 50-day simple moving average (SMA), signaling a short-term bullish trend. Its share price as of Friday was $94.59, down 18.7% from its 52-week high of $ 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend. Image Source: Zacks Investment Research Arch Capital shares have gained 2.4% in the past year, underperforming its industry and the Finance sector's growth of 12.8% and 6.3%, respectively. It, however, outperformed the Zacks S&P 500 composite's return of 0.6%. Image Source: Zacks Investment Research Based on the forward 12-month price-to-book ratio, ACGL is currently trading at 1.72X, above its industry average of 1.58X. The insurer has a Value Score of B. Shares of The Travelers Companies, Inc. TRV and Cincinnati Financial Corporation CINF are also trading at a multiple higher than the industry average, while NMI Holdings Inc. NMIH shares are trading at a discount. Image Source: Zacks Investment Research Arch Capital's trailing 12-month return on equity is 15.7%, ahead of the industry average of 7.8%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders. The Zacks Consensus Estimate for Arch Capital's 2025 revenues is pegged at $18.88 billion, implying a year-over-year improvement of 13.5%. The consensus estimate for 2026 earnings per share and revenues indicates a year-over-year increase of 20.3% and 5.8%, respectively, from the corresponding 2025 estimates. Earnings have grown 33.5% in the past five years, better than the industry average of 18.9%. Arch Capital surpassed earnings estimates in each of the last four quarters, the average being 13.93%. Widespread operations, coupled with a compelling product portfolio, provide meaningful diversification and earnings stability to ACGL. Arch Capital has made significant efforts to boost its inorganic growth through prudent acquisitions. These, in turn, aided international expansion, enhance operations and diversify business at attractive risk-adjusted returns. Solid performances at the Insurance as well as the Reinsurance business are well complemented by the Mortgage Insurance. Premiums should benefit from new business opportunities, rate increases, and growth in existing results are set to benefit from a growing base of invested assets, driven by improving cash liquidity, coupled with low leverage, has helped ACGL strengthen its balance. It also shields it from market volatility and supports growth initiatives. Notably, its free cash flow conversion has remained more than 85% over the last many quarters, reflecting its solid earnings. Arch Capital boasts a strong product portfolio and has a solid track record of premium growth. Both the Insurance and Reinsurance segments should continue to witness significant growth from increases in most lines of business. A robust capital position over the years reflects its financial flexibility. The stock also has a VGM Score of B. VGM Score helps identify stocks with the most attractive value, best growth and the most promising given its expensive valuation, it is better to wait for some more time before taking a call on this Zacks Rank #3 (Hold) stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report NMI Holdings Inc (NMIH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
29-04-2025
- Business
- Yahoo
Arch Capital: Q1 Earnings Snapshot
PEMBROKE, Bermuda (AP) — PEMBROKE, Bermuda (AP) — Arch Capital Group Ltd. (ACGL) on Tuesday reported first-quarter net income of $574 million. On a per-share basis, the Pembroke, Bermuda-based company said it had net income of $1.48. Earnings, adjusted for non-recurring costs, came to $1.54 per share. The results beat Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $1.37 per share. The property and casualty insurer posted revenue of $4.67 billion in the period. Its adjusted revenue was $4.56 billion, which did not meet Street forecasts. Five analysts surveyed by Zacks expected $4.61 billion. Arch Capital shares have increased slightly since the beginning of the year. In the final minutes of trading on Tuesday, shares hit $92.39, an increase of 1% in the last 12 months. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on ACGL at
Yahoo
12-02-2025
- Business
- Yahoo
Arch Capital Group Ltd (ACGL) Q4 2024 Earnings Call Highlights: Strong Premium Growth Amidst ...
Net Premium Written: $3.8 billion in Q4, a 17% increase year-over-year. Underwriting Income: $625 million in Q4, down 14% from last year. After-Tax Operating Income: $3.5 billion for the full year. Operating Return on Average Common Equity: 18.9% for the full year. Book Value Per Share: $3.11 at year-end, a 13% increase for the year. Special Dividend: $5 per share paid in December. Share Repurchase: $24 million worth of shares repurchased in Q4. Reinsurance Underwriting Income: $328 million in Q4; $1.2 billion for the full year. Insurance Underwriting Income: $30 million in Q4; $345 million for the full year. Mortgage Underwriting Income: $267 million in Q4. Net Investment Income: Nearly $1.5 billion for the full year. Cash Flow from Operations: Approximately $6.7 billion for the full year, up 16% from 2023. Effective Tax Rate: 6.7% for Q4; 8.2% for the full year. Common Shareholders' Equity: $20 billion after the $1.9 billion dividend paid in December. Debt Plus Preferred to Capital Ratio: 15.1%. Warning! GuruFocus has detected 3 Warning Sign with ACGL. Release Date: February 11, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Arch Capital Group Ltd (NASDAQ:ACGL) reported a 17% increase in net premium for the fourth quarter, reaching $3.8 billion. The company achieved a full-year after-tax operating income of $3.5 billion, with an operating return on average common equity of 18.9%. Book value per share increased by 13% for the year, and nearly 24% after adjusting for a special dividend. The reinsurance segment delivered a record $1.2 billion of underwriting income for the year. The investment group generated nearly $1.5 billion of annual net investment income, benefiting from rising investment yields and strong operating cash flows. Arch Capital Group Ltd (NASDAQ:ACGL) expects a net loss between $450 million and $550 million due to the California wildfires. Underwriting income for the fourth quarter decreased by 14% compared to the previous year, primarily due to catastrophe losses. The insurance segment's fourth-quarter underwriting income was limited to $30 million due to Hurricane Helene and Milton. The delinquency rates in the US mortgage insurance business increased modestly to just over 2% by the end of December. The company faces competitive pressures in certain lines of business, such as public D&O and cyber, which have seen significant rate decreases. Q: Can you provide clarity on the insurance underlying loss ratio, particularly with the impact of the Allianz deal? A: Francois Morin, CFO, explained that the impact of the mid-corp acquisition adds about 1 point to the loss ratio. The pre-acquisition run rate loss ratio has been stable, and the addition of the mid-corp business slightly increases it to around 58%. Q: What are your thoughts on the reinsurance market conditions, especially after the California wildfires? A: Nicolas Papadopoulo, CEO, noted that the California wildfires are a significant loss for the market, which should dampen enthusiasm for aggressive underwriting. This event is expected to influence rates positively for the rest of the year. Q: Could you elaborate on the casualty reinsurance growth and rate adequacy? A: Nicolas Papadopoulo mentioned that Arch Capital was underweight in casualty treaty reinsurance and has selectively increased its participation in programs with specialty casualty characteristics, which offer attractive returns. The focus is on partnering with underwriters who have the expertise to deliver good results. Q: How is the integration of the mid-corp business progressing, and what are the growth prospects? A: Nicolas Papadopoulo stated that the integration is on track and the business is performing as expected. They are seeing double-digit rate increases in property and liability lines, which aligns with their initial expectations. Q: What is your approach to capital management, particularly regarding share buybacks? A: Francois Morin highlighted that Arch Capital remains committed to returning excess capital to shareholders through share buybacks when the price is right. They continuously assess capital deployment opportunities and will consider buybacks if they cannot deploy all excess capital in the business. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
