Notable Price Action: Is Arch Capital Group Ltd.’s Fuel Running High? The Stock Just Gapped Up

Notable Price Action: Is Arch Capital Group Ltd.'s Fuel Running High? The Stock Just Gapped Up

The stock of Arch Capital Group Ltd. (NASDAQ:ACGL) gapped up by $0.28 today and has $123.91 target or 55.00% above today’s $79.94 share price. The 8 months technical chart setup indicates low risk for the $9.85B company. The gap was reported on Oct, 14 by If the $123.91 price target is reached, the company will be worth $5.42 billion more.
Gaps up are useful for using as a support level and to some extent as a tradeable event. If investors already hold the stock and experience a price gap up, then its usually a good idea to hold the stock for a stronger up move. Back-tests of these patterns indicate that two-thirds of the times the stock performance improves after the gap. The area gaps close 89% of the time, the breakaway gaps, 2%, the continuation gaps 4% and the exhaustion gaps 61%. About 216,342 shares traded hands. Arch Capital Group Ltd. (NASDAQ:ACGL) has risen 12.70% since March 11, 2016 and is uptrending. It has outperformed by 7.25% the S&P500.

Analysts await Arch Capital Group Ltd. (NASDAQ:ACGL) to report earnings on October, 26. They expect $0.91 earnings per share, down 9.90% or $0.10 from last year’s $1.01 per share. ACGL’s profit will be $112.11M for 21.96 P/E if the $0.91 EPS becomes a reality. After $1.13 actual earnings per share reported by Arch Capital Group Ltd. for the previous quarter, Wall Street now forecasts -19.47% negative EPS growth.

Arch Capital Group Ltd. (NASDAQ:ACGL) Ratings Coverage

Out of 11 analysts covering Arch Capital (NASDAQ:ACGL), 3 rate it a “Buy”, 1 “Sell”, while 7 “Hold”. This means 27% are positive. Arch Capital has been the topic of 23 analyst reports since July 31, 2015 according to StockzIntelligence Inc. The stock of Arch Capital Group Ltd. (NASDAQ:ACGL) earned “Underperform” rating by Bank of America on Friday, October 30. The firm has “Neutral” rating given on Tuesday, January 19 by Macquarie Research. UBS upgraded the stock to “Buy” rating in Tuesday, September 6 report. The stock has “Outperform” rating given by RBC Capital Markets on Friday, July 31. The stock has “Buy” rating given by M Partners on Thursday, July 30. The rating was initiated by Nomura with “Neutral” on Wednesday, November 11. The firm earned “Hold” rating on Friday, July 29 by Deutsche Bank. The stock has “Buy” rating given by Zacks on Monday, August 10. The firm earned “Equal-Weight” rating on Thursday, September 15 by Barclays Capital. The firm earned “Market Perform” rating on Friday, August 5 by Keefe Bruyette & Woods.

According to Zacks Investment Research, “Arch Capital Group Ltd. is a diversified financial services holding company, with an emphasis on the insurance sector. The Arch Capital Group is engaged in a range of insurance and financial service activities through subsidiaries comprising Arch Insurance Services and the ownership of intermediaries, underwriting agencies, service providers and insurance companies.”

Insitutional Activity: The institutional sentiment increased to 0.9 in 2016 Q2. Its up 0.08, from 0.82 in 2016Q1. The ratio improved, as 14 funds sold all Arch Capital Group Ltd. shares owned while 107 reduced positions. 24 funds bought stakes while 85 increased positions. They now own 93.22 million shares or 0.26% less from 93.46 million shares in 2016Q1.
Clinton Grp holds 0.13% of its portfolio in Arch Capital Group Ltd. (NASDAQ:ACGL) for 42,741 shares. New York State Common Retirement Fund accumulated 437,000 shares or 0.05% of the stock. Moreover, Ls Invest Advsr Ltd Com has 0.04% invested in Arch Capital Group Ltd. (NASDAQ:ACGL) for 7,731 shares. Nomura Asset Mngmt accumulated 46,131 shares or 0.06% of the stock. Engineers Gate Manager Lp accumulated 0.05% or 10,600 shares. Natixis Asset Management holds 15,424 shares or 0.12% of its portfolio. Williams Jones Associate Ltd Liability Co reported 21,425 shares or 0.07% of all its holdings. Gideon Cap Advsrs last reported 0.42% of its portfolio in the stock. Smithfield Tru owns 288 shares or 0% of their US portfolio. Tarbox Gp holds 0% or 17 shares in its portfolio. Bluemountain Mngmt Lc has 0.01% invested in the company for 5,842 shares. Voya Mngmt Limited Liability holds 37,636 shares or 0.01% of its portfolio. Birch Hill Invest Ltd Liability owns 4,019 shares or 0.03% of their US portfolio. The Maryland-based Wms Prns Lc has invested 0.07% in Arch Capital Group Ltd. (NASDAQ:ACGL). Pictet North America Advsr Sa has invested 0.17% of its portfolio in Arch Capital Group Ltd. (NASDAQ:ACGL).

Insider Transactions: Since May 24, 2016, the stock had 0 insider buys, and 9 selling transactions for $11.41 million net activity. IORDANOU CONSTANTINE sold $2.86 million worth of stock or 40,000 shares. Lillikas Yiorgos also sold $113,373 worth of Arch Capital Group Ltd. (NASDAQ:ACGL) on Wednesday, June 1. 7,000 shares were sold by Lyons Mark Donald, worth $502,656. McElroy David had sold 25,000 shares worth $1.98M. 8,635 shares with value of $685,838 were sold by PETRILLO LOUIS T on Monday, August 22.

More notable recent Arch Capital Group Ltd. (NASDAQ:ACGL) news were published by: which released: “Arch Capital Group Ltd. Reports 2016 Second Quarter Results” on July 27, 2016, also with their article: “S&P Lowers Outlook on Arch Capital Group Ltd (ACGL) to Negative Amid United …” published on August 17, 2016, published: “Arch Capital Group Ltd. Names Marc Grandisson President and Chief Operating …” on November 11, 2015. More interesting news about Arch Capital Group Ltd. (NASDAQ:ACGL) were released by: and their article: “Arch Capital Group Ltd. to Report 2016 Second Quarter Results on July 27, 2016” published on June 29, 2016 as well as‘s news article titled: “Form 8-A12B ARCH CAPITAL GROUP LTD.” with publication date: September 29, 2016.

ACGL Company Profile

Arch Capital Group Ltd. (ACGL), incorporated on October 22, 2000, writes insurance and reinsurance on a worldwide basis. The Firm operates in five divisions: insurance, reinsurance, mortgage, other and corporate. The Company’s insurance, reinsurance and mortgage divisions are underwriting divisions. The insurance segment’s product lines include construction and national accounts; excess and surplus casualty; lenders products; professional lines; programs; property, energy, marine and aviation; travel, accident and health, and other, which includes alternative market risks and excess workers’ compensation. The reinsurance segment’s product lines include casualty; marine and aviation; other specialty; property catastrophe; property excluding property catastrophe, and other, which includes life reinsurance and casualty clash businesses. The mortgage segment includes the results of Arch Mortgage Insurance Company (Arch MI U.S.) and Arch Mortgage Insurance Designated Activity Company (Arch MI Europe), which are providers of mortgage insurance services and products to the United States and European markets. The corporate (non-underwriting) segment results include net investment income and interest expense. The other segment includes the results of Watford Holdings Ltd. (Watford Re).

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