Arch Capital Group Ltd. (NASDAQ:ACGL) a Hold: KBW

In a research note issued to investors, Meyer Shields at KBW Reiterated their Hold rating on Arch Capital Group Ltd. (NASDAQ:ACGL). The analyst placed a $63.00 price target on the stock which indicates a 2.44% upside to the last closing price. In the year following Meyer’s ratings, the stocks covered yield an average return of 5.6% according to TipRanks.com. In the past year 16 out of 26 recommendations or 62% were successful.

There are 9 research firms in total that have issued ratings on Arch Capital Group Ltd. (NASDAQ:ACGL) within the past year. The consensus, or mean target price of the Wall Street analysts covering the firm is $65.111.

Analysts are predicting that Arch Capital Group Ltd. (NASDAQ:ACGL) will report $1.06 earnings per share when they next issue their quarterly earnings release on or around 2015-07-30. The consensus mean estimate is the calculated mean of all brokerage sell-side analysts that issue earnings estimates for the company. In the most recent quarter the company reported earnings of $1.17 that ended on 2015-03-31.

Arch Capital Group Ltd. (NASDAQ:ACGL) has a 2.18 consensus analyst rating on the stock based on an arithmetical average of the 9 ratings given by the brokerage analysts covering the company. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell. The highest estimate of the 9 covering analysts sees the stock climbing to $70 within the next year while the lowest estimate places the 12-month target price at $60.

Looking ahead to full year estimates, analysts have placed the consensus earnings per share estimate for the current year at $4.02. The most bullish analyst sees the company reporting earnings per share of $4.47 while the most bearish analyst is predicting a current year EPS number of $3.52. Looking further ahead to the next three to five years, the long term EPS growth rate on a consensus basis is 6.22%, based on the 4 analysts providing longer term projections in their models.

Arch Capital Group Ltd. (ACGL) writes insurance and reinsurance on a worldwide basis. ACGL operates in two underwriting segments: insurance and reinsurance. Its insurance operations are conducted in Bermuda, the United States, Europe, Canada, Australia and South Africa. Its insurance operations in Bermuda are conducted through Arch Insurance (Bermuda), a division of Arch Re Bermuda. In the United States, its insurance group’s principal insurance subsidiaries are Arch Insurance Company, Arch Excess & Surplus Insurance Company, Arch Specialty Insurance Company, and Arch Indemnity Insurance Company. Its reinsurance operations are conducted on a worldwide basis through its reinsurance subsidiaries, Arch Reinsurance Ltd., Arch Reinsurance Company, including treaty and property facultative reinsurance operations) and Reinsurance Europe Underwriting Limited. In April 2012, the Company acquired Ariel Re’s Credit & Surety reinsurance operations based in Zurich.