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Arch Capital Group Ltd. (ACGLO)

NasdaqGS - NasdaqGS Real-time price. Currency in USD
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22.31+0.10 (+0.43%)
As of 12:40PM EDT. Market open.
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  • Y
    Yahoo Finance Insights
    Arch Capital reached an all time low at 18.40
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    Yahoo Finance Insights
    Arch Capital reached an all time low at 18.32
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    Yahoo Finance Insights
    Arch Capital reached an all time low at 19.05
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    Yahoo Finance Insights
    Arch Capital reached a 52 Week low at 19.00
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    Yahoo Finance Insights
    Arch Capital reached an all time low at 18.90
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    Yahoo Finance Insights
    Arch Capital reached a 52 Week low at 18.66
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    Yahoo Finance Insights
    Arch Capital reached a 52 Week high at 50.70
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    Yahoo Finance Insights
    Arch Capital reached an all time high at 50.01
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    Yahoo Finance Insights
    Arch Capital reached an all time low at 19.35
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    Yahoo Finance Insights
    Arch Capital reached an all time low at 19.00
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    Yahoo Finance Insights
    Arch Capital reached an all time high at 50.47
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    Yahoo Finance Insights
    Arch Capital reached an all time low at 19.28
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    Yahoo Finance Insights
    Arch Capital reached a 52 Week low at 18.37
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    Yahoo Finance Insights
    Arch Capital reached an all time low at 19.31
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    Yahoo Finance Insights
    Arch Capital reached an all time low at 19.48
  • Y
    Yahoo Finance Insights
    Arch Capital reached an all time low at 19.48
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    Yahoo Finance Insights
    Arch Capital reached an all time low at 19.39
  • W
    William
    Sleeper stock set to rise:
    Arch: Upgrading To Buy On Improved MI Outlook + Hard(ening) P/C Market. Valuation Attractive At 110% of TBV. Raising Q2-20E & ‘20E By $0.30/sh And ‘21E By $0.15/sh.

    We are upgrading Arch Capital (ACGL, $28.29, Buy) to Buy from Neutral. There are 3 significant contributing factors we believe support a buy rating at this time: (1) The near term MI outlook now appears materially better than we had forecasted / mgmt. suggested in Q1 (guided to essentially no u/wing income over the last 3 quarters) and the reasonable “worst case” remains manageable given the capital position / significant reinsurance support. (2) While COVID-19 will be a nearer term drag on reported P/C results (we’re modeling ~$260M from here through 2021, including $60M in Q2), we believe the hard(ening) (re)insurance market “has legs” and presents an attractive opportunity for Arch. (3) Arch is a well-managed / premiere franchise with a strong balance sheet (recent $1B debt offering provides additional cushion) and a compelling valuation. Shares are down 34% YTD (vs. the S&P at -2%, multi-line (re)insurance peers at -27% and monoline MI’s at -47%) and are down 21% from the early June “bounce.” The stock currently trades at only a modest premium to TBV = 110% of Q2E TBV (115% with bonds at cost) with the current price suggesting a 2021E operating earnings yield of 9%. With our revised / improved outlook, we are raising our Q2-20E & 2020E by $0.30/sh each to $0.15/sh and $1.15/sh, respectively. We are also raising our 2021E by $0.15/sh to $2.50/sh. Additionally, we are initiating a $3.40/sh 2022E which contemplates further normalization in MI results and continued improvement for P/C as rate increases earn through.
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    Yahoo Finance Insights
    Arch Capital reached an all time low at 20.11
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    Yahoo Finance Insights
    Arch Capital reached an all time low at 21.20