Roth Capital Forecasts Lower Earnings for Arch Capital Group

Arch Capital Group Ltd. (NASDAQ:ACGL) – Research analysts at Roth Capital lowered their Q2 2025 earnings estimates for Arch Capital Group in a report released on Wednesday, April 30th. Roth Capital analyst H. Fong now forecasts that the insurance provider will earn $2.34 per share for the quarter, down from their prior estimate of $2.35. The consensus estimate for Arch Capital Group’s current full-year earnings is $8.42 per share. Roth Capital also issued estimates for Arch Capital Group’s Q4 2025 earnings at $2.49 EPS, Q2 2026 earnings at $2.60 EPS and Q4 2026 earnings at $2.86 EPS.

Other equities analysts also recently issued reports about the stock. UBS Group decreased their price objective on shares of Arch Capital Group from $127.00 to $124.00 and set a “buy” rating on the stock in a report on Wednesday, April 9th. Royal Bank of Canada decreased their price objective on shares of Arch Capital Group from $125.00 to $110.00 and set an “outperform” rating on the stock in a report on Wednesday, February 12th. Keefe, Bruyette & Woods decreased their price objective on shares of Arch Capital Group from $120.00 to $113.00 and set an “outperform” rating on the stock in a report on Thursday, February 13th. Morgan Stanley lowered their price target on shares of Arch Capital Group from $115.00 to $110.00 and set an “overweight” rating on the stock in a research report on Friday, February 14th. Finally, Barclays cut their price objective on shares of Arch Capital Group from $100.00 to $93.00 and set an “equal weight” rating for the company in a report on Friday, April 11th. Six research analysts have rated the stock with a hold rating and eleven have given a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $115.00.

Arch Capital Group Stock Performance

ACGL opened at $89.67 on Thursday. The company has a quick ratio of 0.58, a current ratio of 0.54 and a debt-to-equity ratio of 0.15. The company has a market cap of $33.69 billion, a price-to-earnings ratio of 8.01, a PEG ratio of 2.31 and a beta of 0.36. Arch Capital Group has a 52-week low of $82.49 and a 52-week high of $116.47. The firm’s fifty day simple moving average is $92.02 and its two-hundred day simple moving average is $94.62.

Arch Capital Group (NASDAQ:ACGL) last announced its quarterly earnings results on Tuesday, April 29th. The insurance provider reported $1.54 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.59 by ($0.05). The firm had revenue of $4.52 billion for the quarter, compared to analysts’ expectations of $4.75 billion. Arch Capital Group had a return on equity of 17.96% and a net margin of 24.73%. The business’s quarterly revenue was up 10.5% on a year-over-year basis. During the same period last year, the company posted $2.45 earnings per share.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Empirical Financial Services LLC d.b.a. Empirical Wealth Management grew its position in Arch Capital Group by 3.5% in the fourth quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 197,111 shares of the insurance provider’s stock worth $18,203,000 after acquiring an additional 6,663 shares during the period. Pittenger & Anderson Inc. lifted its stake in Arch Capital Group by 56.6% during the fourth quarter. Pittenger & Anderson Inc. now owns 6,720 shares of the insurance provider’s stock worth $621,000 after purchasing an additional 2,430 shares in the last quarter. Asahi Life Asset Management CO. LTD. acquired a new position in Arch Capital Group during the fourth quarter worth $366,000. Northstar Group Inc. lifted its stake in Arch Capital Group by 5.1% during the fourth quarter. Northstar Group Inc. now owns 122,197 shares of the insurance provider’s stock worth $11,285,000 after purchasing an additional 5,947 shares in the last quarter. Finally, William Blair Investment Management LLC lifted its stake in Arch Capital Group by 33.7% during the fourth quarter. William Blair Investment Management LLC now owns 624,055 shares of the insurance provider’s stock worth $57,631,000 after purchasing an additional 157,197 shares in the last quarter. 89.07% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, insider Louis T. Petrillo sold 11,600 shares of the stock in a transaction that occurred on Wednesday, March 5th. The stock was sold at an average price of $91.00, for a total value of $1,055,600.00. Following the completion of the transaction, the insider now directly owns 140,023 shares in the company, valued at approximately $12,742,093. This represents a 7.65 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 4.10% of the stock is currently owned by company insiders.

About Arch Capital Group

Arch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products worldwide. The company's Insurance segment offers primary and excess casualty coverages; loss sensitive primary casualty insurance programs; directors' and officers' liability, errors and omissions liability, employment practices and fiduciary liability, crime, professional indemnity, and other financial related coverages; medical professional and general liability insurance coverages; and workers' compensation and umbrella liability, as well as commercial automobile and inland marine products.