Arch Capital Group (NASDAQ:ACGL) Issues Quarterly Earnings Results

Arch Capital Group (NASDAQ:ACGL) released its earnings results on Monday. The insurance provider reported $2.98 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.34 by $0.64, FiscalAI reports. Arch Capital Group had a return on equity of 17.00% and a net margin of 22.07%.The business had revenue of $3.80 billion for the quarter, compared to the consensus estimate of $3.94 billion. During the same quarter in the previous year, the business earned $2.26 earnings per share.

Arch Capital Group Price Performance

Shares of Arch Capital Group stock opened at $97.85 on Wednesday. Arch Capital Group has a 12-month low of $82.44 and a 12-month high of $103.39. The firm has a market cap of $35.48 billion, a PE ratio of 8.42, a price-to-earnings-growth ratio of 2.02 and a beta of 0.42. The company has a quick ratio of 0.55, a current ratio of 0.55 and a debt-to-equity ratio of 0.13. The company’s fifty day simple moving average is $94.73 and its two-hundred day simple moving average is $91.69.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the company. Barclays set a $104.00 target price on Arch Capital Group and gave the stock an “equal weight” rating in a report on Thursday, January 8th. Cantor Fitzgerald restated an “overweight” rating and set a $97.00 target price (up previously from $93.00) on shares of Arch Capital Group in a research report on Wednesday, January 14th. Citigroup reaffirmed a “market outperform” rating on shares of Arch Capital Group in a research report on Friday, January 16th. Royal Bank Of Canada set a $108.00 target price on shares of Arch Capital Group and gave the stock an “outperform” rating in a report on Monday, November 24th. Finally, The Goldman Sachs Group reissued a “sell” rating and set a $93.00 price target (up from $84.00) on shares of Arch Capital Group in a research report on Wednesday, January 7th. Nine research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $107.53.

Key Stories Impacting Arch Capital Group

Here are the key news stories impacting Arch Capital Group this week:

• Positive Sentiment: Q4 results beat expectations: Arch reported $2.98 EPS (beats consensus) with net income and underwriting strength driving a sizable year‑over‑year increase in profit; company released detailed results and slides. Read More.
• Positive Sentiment: Management tone and capital return plans supportive: Analysts and transcripts highlight management confidence, disciplined underwriting and accelerating buybacks (management indicated significant buyback capacity for 2026), which underpin valuation support. Read More.
• Neutral Sentiment: Revenue vs. consensus mixed: While EPS and operating income beat, total revenue came in a bit below some consensus figures — investors should check slide deck and call for segment detail to reconcile underwriting vs. investment results. Read More.
• Negative Sentiment: Short interest rose in late January: Short interest increased ~21.5% to ~7.05M shares (~2% of shares), which can add volatility and selling pressure if shorts build further or if earnings follow‑through disappoints. (Data from exchange short-interest reports)
• Negative Sentiment: Relative performance lag vs. peers: Despite today’s gains, coverage noted Arch underperformed some competitors on a relative basis, suggesting investors may favor peers on valuation or growth tradeoffs. Read More.

Insider Transactions at Arch Capital Group

In other Arch Capital Group news, CFO Francois Morin sold 8,000 shares of Arch Capital Group stock in a transaction dated Friday, November 28th. The shares were sold at an average price of $94.62, for a total value of $756,960.00. Following the completion of the transaction, the chief financial officer directly owned 266,681 shares of the company’s stock, valued at approximately $25,233,356.22. The trade was a 2.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider John M. Pasquesi sold 203,866 shares of the business’s stock in a transaction that occurred on Friday, December 12th. The shares were sold at an average price of $93.90, for a total transaction of $19,143,017.40. Following the transaction, the insider directly owned 351,356 shares of the company’s stock, valued at $32,992,328.40. The trade was a 36.72% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 220,666 shares of company stock valued at $20,728,673. 4.10% of the stock is owned by insiders.

Institutional Investors Weigh In On Arch Capital Group

Large investors have recently made changes to their positions in the company. Ameriprise Financial Inc. increased its stake in Arch Capital Group by 289.1% in the 2nd quarter. Ameriprise Financial Inc. now owns 1,368,648 shares of the insurance provider’s stock worth $124,615,000 after acquiring an additional 1,016,919 shares during the last quarter. Two Sigma Investments LP increased its position in shares of Arch Capital Group by 112.4% during the 3rd quarter. Two Sigma Investments LP now owns 1,895,222 shares of the insurance provider’s stock valued at $171,953,000 after purchasing an additional 1,003,004 shares during the last quarter. UBS Group AG raised its holdings in Arch Capital Group by 56.4% during the 3rd quarter. UBS Group AG now owns 2,738,518 shares of the insurance provider’s stock valued at $248,466,000 after buying an additional 987,398 shares during the period. Marshall Wace LLP boosted its stake in Arch Capital Group by 3,918.3% during the third quarter. Marshall Wace LLP now owns 934,287 shares of the insurance provider’s stock worth $84,768,000 after buying an additional 911,036 shares during the period. Finally, Worldquant Millennium Advisors LLC raised its stake in shares of Arch Capital Group by 249.7% in the second quarter. Worldquant Millennium Advisors LLC now owns 707,039 shares of the insurance provider’s stock valued at $64,376,000 after acquiring an additional 504,880 shares during the period. 89.07% of the stock is owned by institutional investors.

About Arch Capital Group

Arch Capital Group Ltd. (NASDAQ: ACGL) is a Bermuda-based insurance and reinsurance holding company that underwrites a broad range of property and casualty, mortgage, and specialty risk products. The company operates through a group of underwriting subsidiaries and platforms to provide insurance, reinsurance and related risk solutions tailored to commercial, institutional and individual clients.

Arch’s product mix includes treaty and facultative reinsurance, primary casualty and property insurance, mortgage insurance and other specialty lines.