Arch Capital Group Ltd. (ACGL) can make a big difference with a little luck

Arch Capital Group Ltd. (NASDAQ: ACGL) stock jumped 0.93% on Thursday to $79.06 against a previous-day closing price of $78.33. With 1.22 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.89 million shares. During the session, the Insurance – Diversified company that operates in wider Financial sector, reached to the highest price of $79.33 whereas the lowest price it dropped to was $78.46. The 52-week range on ACGL shows that it touched its highest point at $84.83 and its lowest point at $41.05 during that stretch. It currently has a 1-year price target of $89.69. Beta for the stock currently stands at 0.72.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ACGL was up-trending over the past week, with a rise of 1.53%, but this was up by 2.20% over a month. Three-month performance surged to 12.81% while six-month performance rose 26.01%. The stock gained 68.03% in the past year, while it has gained 25.93% so far this year. A look at the trailing 12-month EPS for ACGL yields 5.90 with Next year EPS estimates of 7.32. For the next quarter, that number is 1.31. This implies an EPS growth rate of -27.30% for this year and 8.23% for next year. EPS is expected to grow by 19.65% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 22.00%.

Float and Shares Shorts:

At present, 368.70 million ACGL shares are outstanding with a float of 361.16 million shares on hand for trading. On Aug 30, 2023, short shares totaled 5.06 million, which was 1.36% higher than short shares on Jul 30, 2023. In addition to Mr. Marc Grandisson as the firm’s CEO & Director, Mr. Nicolas Alain Emmanuel Papadopoulo serves as its Pres & Chief Underwriting Officer.

Institutional Ownership:

Through their ownership of 91.37% of ACGL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 57.76% of ACGL, in contrast to 32.39% held by mutual funds. Shares owned by individuals account for 31.95%. As the largest shareholder in ACGL with 10.59% of the stake, The Vanguard Group, Inc. holds 39,438,833 shares worth 39,438,833. A second-largest stockholder of ACGL, Artisan Partners LP, holds 25,958,385 shares, controlling over 6.97% of the firm’s shares. BAMCO, Inc. is the third largest shareholder in ACGL, holding 21,296,800 shares or 5.72% stake. With a 4.78% stake in ACGL, the Artisan International Value Fund is the largest stakeholder. A total of 17,810,126 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.96% of ACGL stock, is the second-largest Mutual Fund holder. It holds 11,034,583 shares valued at 857.28 million. Baron Growth Fund holds 2.43% of the stake in ACGL, owning 9,060,000 shares worth 703.87 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ACGL since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With ACGL analysts setting a high price target of $100.00 and a low target of $78.00, the average target price over the next 12 months is $89.07. Based on these targets, ACGL could surge 26.49% to reach the target high and fall by -1.34% to reach the target low. Reaching the average price target will result in a growth of 12.66% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded ACGL stock several times over the past three months with 2 Buys and 1 Sells. In these transactions, 86,299 shares were bought while 54,219 shares were sold. The number of buy transactions has increased to 47 while that of sell transactions has risen to 40 over the past year. The total number of shares bought during that period was 829,113 while 1,171,757 shares were sold.

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