Arch Capital Group Ltd. (ACGL) stock is nearly perfect except the valuation

The price of Arch Capital Group Ltd. (NASDAQ: ACGL) closed at $72.38 in the last session, up 0.85% from day before closing price of $71.77. In other words, the price has increased by $+0.61 from its previous closing price. On the day, 1677329 shares were traded. ACGL stock price reached its highest trading level at $73.06 during the session, while it also had its lowest trading level at $71.50.

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Ratios:

We take a closer look at ACGL’s different ratios to gain a better understanding of the stock. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 33.25 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 6.39. In the meantime, Its Debt-to-Equity ratio is 0.21 whereas as Long-Term Debt/Eq ratio is at 0.21.

Upgrades & Downgrades

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on May 19 when GRANDISSON MARC sold 200,000 shares for $76.10 per share. The transaction valued at 15,220,920 led to the insider holds 2,287,157 shares of the business.

PETRILLO LOUIS T sold 15,406 shares of ACGL for $1,183,071 on May 10. The OFFICER OF SUBSIDIARY now owns 105,254 shares after completing the transaction at $76.79 per share. On May 09, another insider, Rajeh Maamoun, who serves as the CHAIRMAN & CEO ARCH RE GROUP of the company, sold 40,000 shares for $76.41 each. As a result, the insider received 3,056,200 and left with 335,378 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, ACGL now has a Market Capitalization of 27.50B and an Enterprise Value of 30.28B. As of this moment, Arch’s Price-to-Earnings (P/E) ratio for their current fiscal year is 13.94, and their Forward P/E ratio for the next fiscal year is 10.60. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 0.78. For the stock, the TTM Price-to-Sale (P/S) ratio is 2.49 while its Price-to-Book (P/B) ratio in mrq is 2.02. Its current Enterprise Value per Revenue stands at 2.80.

Stock Price History:

Over the past 52 weeks, ACGL has reached a high of $78.30, while it has fallen to a 52-week low of $41.05. The 50-Day Moving Average of the stock is 71.38, while the 200-Day Moving Average is calculated to be 60.33.

Shares Statistics:

According to the various share statistics, ACGL traded on average about 2.14M shares per day over the past 3-months and 1.82M shares per day over the past 10 days. A total of 367.30M shares are outstanding, with a floating share count of 358.48M. Insiders hold about 0.90% of the company’s shares, while institutions hold 90.70% stake in the company. Shares short for ACGL as of Apr 27, 2023 were 4.36M with a Short Ratio of 5.20M, compared to 5.96M on Mar 30, 2023. Therefore, it implies a Short% of Shares Outstanding of 1.17% and a Short% of Float of 1.37%.

Earnings Estimates

The company has 10 analysts who recommend its stock at the moment. On average, analysts expect EPS of $1.59 for the current quarter, with a high estimate of $1.87 and a low estimate of $1.29, while EPS last year was $1.34. The consensus estimate for the next quarter is $1.2, with high estimates of $1.64 and low estimates of $0.75.

Analysts are recommending an EPS of between $7 and $5.7 for the fiscal current year, implying an average EPS of $6.26. EPS for the following year is $6.86, with 11 analysts recommending between $7.7 and $6.

Revenue Estimates

According to 5 analysts, the current quarter’s revenue is expected to be $3.14B. It ranges from a high estimate of $3.42B to a low estimate of $2.73B. As of the current estimate, Arch Capital Group Ltd.’s year-ago sales were $2.68B, an estimated increase of 17.10% from the year-ago figure. For the next quarter, 5 analysts are estimating revenue of $2.99B, an increase of 22.00% over than the figure of $17.10% in the same quarter last year. There is a high estimate of $3.15B for the next quarter, whereas the lowest estimate is $2.86B.

A total of 8 analysts have provided revenue estimates for ACGL’s current fiscal year. The highest revenue estimate was $13.31B, while the lowest revenue estimate was $11.63B, resulting in an average revenue estimate of $12.5B. In the same quarter a year ago, actual revenue was $9.5B, up 31.60% from the average estimate. Based on 8 analysts’ estimates, the company’s revenue will be $13.68B in the next fiscal year. The high estimate is $15.14B and the low estimate is $12.64B. The average revenue growth estimate for next year is up 9.40% from the average revenue estimate for this year.