Arch Capital Group officer sells $1.93 million in shares

Louis T. Petrillo, an officer of a subsidiary at Arch Capital Group Ltd. (NASDAQ:ACGL), reported selling a significant amount of the company’s common shares, according to a recent SEC filing. On March 4 and 5, Petrillo sold a total of 21,000 shares. The sales were executed at prices ranging from $91.0032 to $92.7338 per share, amounting to a total transaction value of approximately $1.93 million. The transaction comes as the $34.2 billion market cap insurer trades at an attractive P/E ratio of 8x, with InvestingPro analysis indicating the stock is currently undervalued.

Additionally, Petrillo exercised stock options on March 4 and 5, acquiring 21,000 shares at an exercise price of $15.835 per share. However, these transactions were not directly linked to the sales reported. The company has demonstrated strong financial performance, with revenue growing nearly 28% over the last twelve months.

Following these transactions, Petrillo holds 140,023 shares of Arch Capital Group Ltd. directly. The transactions reflect a strategic decision by Petrillo regarding his holdings in the company, which specializes in fire, marine, and casualty insurance. With an "GREAT" financial health score and strong returns over both five and ten-year periods, detailed analysis of ACGL’s performance metrics and future prospects is available through InvestingPro’s comprehensive research reports.

In other recent news, Arch Capital Group Ltd. reported fourth-quarter earnings that exceeded analyst expectations, with adjusted earnings per share reaching $2.26, surpassing the consensus estimate of $1.84. The company’s revenue also exceeded forecasts, coming in at $4.76 billion compared to the expected $4.03 billion. Gross premiums written saw a year-over-year increase of 11.9% to $4.76 billion, while net premiums written rose 17.1% to $3.82 billion. Despite pre-tax catastrophe losses of $393 million due to Hurricanes Milton and Helene, the company maintained a combined ratio of 85.0%.

RBC Capital Markets recently revised Arch Capital’s price target to $110 from $125, maintaining an Outperform rating, citing strong year-end results despite challenges. Keefe, Bruyette & Woods also adjusted their target to $113, influenced by anticipated increased catastrophe losses and other financial factors. JMP Securities, however, kept their price target at $125, highlighting Arch Capital’s strategic positioning and financial discipline in the property and casualty insurance market.

These developments reflect Arch Capital’s robust performance and strategic maneuvers in a challenging market environment. The company’s strong balance sheet and underwriting expertise have been recognized as key advantages by analysts. Arch Capital’s strategic acquisitions and cycle management continue to play a significant role in its overall performance and market positioning.

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