A Closer Look at 9 Analyst Recommendations For Arch Capital Group

Ratings for Arch Capital Group ACGL were provided by 9 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $95.33, with a high estimate of $105.00 and a low estimate of $86.00. This current average has increased by 2.32% from the previous average price target of $93.17.

Analyzing Analyst Ratings: A Detailed Breakdown

A comprehensive examination of how financial experts perceive Arch Capital Group is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Arch Capital Group. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Arch Capital Group compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Arch Capital Group's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into Arch Capital Group's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Arch Capital Group analyst ratings.

Get to Know Arch Capital Group Better

Arch Capital Group Ltd is a Bermuda company which writes insurance and reinsurance with operations in Bermuda, the United States, Canada, Europe, Australia and South Africa. The business operates through three segments: insurance, reinsurance, and mortgage. The insurance segment provides specialty risk solutions to clients worldwide across a variety of industries. The reinsurance segment provides reinsurance services which cover property catastrophe, property, liability, marine, aviation and space, trade credit and surety, agriculture, accident, life and health, and political risk. The mortgage business provides risk management and risk financing products to the mortgage insurance sectors through platforms in the U.S., Europe and Bermuda.

Arch Capital Group: Financial Performance Dissected

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Arch Capital Group's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 32.2%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.

Net Margin: Arch Capital Group's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 21.65%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Arch Capital Group's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.05%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Arch Capital Group's ROA stands out, surpassing industry averages. With an impressive ROA of 1.31%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.19.

How Are Analyst Ratings Determined?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.