Bowhead Specialty (NYSE:BOW) Shares Gap Up Following Earnings Beat

Bowhead Specialty Holdings Inc. (NYSE:BOW) shares gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $24.35, but opened at $26.01. Bowhead Specialty shares last traded at $25.96, with a volume of 27,530 shares changing hands.

The company reported $0.27 EPS for the quarter. The business had revenue of $65.45 million during the quarter. Bowhead Specialty had a net margin of 10.05% and a return on equity of 13.25%.

Analyst Ratings Changes

BOW has been the topic of several research reports. Morgan Stanley dropped their price objective on shares of Bowhead Specialty from $34.00 to $31.00 and set an “equal weight” rating on the stock in a research note on Tuesday, October 7th. JPMorgan Chase & Co. dropped their price objective on shares of Bowhead Specialty from $39.00 to $33.00 and set a “neutral” rating on the stock in a research note on Thursday, October 9th. JMP Securities dropped their price objective on shares of Bowhead Specialty from $43.00 to $40.00 and set a “market outperform” rating on the stock in a research note on Tuesday, October 14th. Piper Sandler dropped their price objective on shares of Bowhead Specialty from $38.00 to $33.00 and set an “overweight” rating on the stock in a research note on Thursday, October 2nd. Finally, Deutsche Bank Aktiengesellschaft started coverage on shares of Bowhead Specialty in a research note on Friday, August 8th. They issued a “buy” rating on the stock. Five research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $35.67.

Insiders Place Their Bets

In related news, Director Gallatin Point Capital Llc sold 2,000,000 shares of the firm’s stock in a transaction on Friday, August 8th. The shares were sold at an average price of $30.66, for a total value of $61,320,000.00. Following the transaction, the director directly owned 8,968,445 shares in the company, valued at approximately $274,972,523.70. This trade represents a 18.23% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Matthew Botein sold 2,000,000 shares of the firm’s stock in a transaction on Friday, August 8th. The shares were sold at an average price of $30.66, for a total transaction of $61,320,000.00. Following the completion of the transaction, the director owned 8,968,445 shares in the company, valued at $274,972,523.70. The trade was a 18.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing.

Institutional Trading of Bowhead Specialty

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Informed Momentum Co LLC bought a new position in Bowhead Specialty during the 1st quarter valued at about $3,137,000. Goldman Sachs Group Inc. lifted its holdings in Bowhead Specialty by 33.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 121,705 shares of the company’s stock valued at $4,947,000 after purchasing an additional 30,440 shares during the last quarter. Deutsche Bank AG lifted its holdings in Bowhead Specialty by 131.1% during the 1st quarter. Deutsche Bank AG now owns 15,158 shares of the company’s stock valued at $616,000 after purchasing an additional 8,598 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank raised its stake in shares of Bowhead Specialty by 17.5% in the first quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 7,400 shares of the company’s stock worth $301,000 after acquiring an additional 1,100 shares during the last quarter. Finally, Vanguard Group Inc. raised its stake in shares of Bowhead Specialty by 16.2% in the first quarter. Vanguard Group Inc. now owns 752,320 shares of the company’s stock worth $30,582,000 after acquiring an additional 105,138 shares during the last quarter.

Bowhead Specialty Price Performance

The company has a market capitalization of $852.77 million, a P/E ratio of 17.70 and a beta of -0.92. The stock’s 50 day simple moving average is $27.32 and its two-hundred day simple moving average is $32.77.

About Bowhead Specialty

Bowhead Specialty Holdings Inc provides specialty property and casualty insurance products in the United States. It underwrites casualty insurance solutions for risks in the construction, distribution, heavy manufacturing, real estate, and hospitality segments; professional liability insurance solutions for financial institutions, private and public directors and officers liability insurance, errors and omissions liability insurance, and cyber segments; and healthcare solutions for hospitals, senior care providers, managed care organizations, miscellaneous medical facilities, and healthcare management liability segments.