Technicals Say Arch Capital Group Ltd. (ACGL) Is Worth Holding


As of Friday close, Arch Capital Group Ltd.’s (NASDAQ:ACGL) stock was down -$2.92, moving down -4.42 percent to $63.15. The average number of shares traded per day over the past five days has been 3,651,680 shares. 2 times new highs have been achieved over the past 5 days, with a -$3.46 fall in that time frame. In the last twenty days, the average volume was 2,787,150, while in the previous 50 days, it was 2,177,514.

Since last month, ACGL stock retreated -7.11%. Shares of the company fell to $62.10 on 03/16/23, the lowest level in the past month. A 52-week high of $72.28 was reached on 03/06/23 after having rallying from a 52-week low of $41.05. Since the beginning of this year, ACGL’s stock price has risen by 0.59% or $0.37, and marked a new high 20 times. However, the stock has declined by -12.63% since its 52-week high.

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ACGL stock investors should be aware that Arch Capital Group Ltd. (ACGL) stock had its last reported insider trading activity 16 days ago on Mar 02. Papadopoulo Nicolas, the OFFICER OF SUBSIDIARY of the company, disposed of 30,000 shares for $70.16 on Mar 02. It resulted in a $2,104,671 divestment by the insider. Morin Francois sold 15,814 shares at an average price of $67.61 on Feb 21. The insider now owns 185,869 shares following the transaction. On Feb 15, CHAIR PASQUESI JOHN M sold 26,329 shares at $67.01 apiece. The transaction was valued at $1,764,225.

Valuation Metrics

Right now, Arch Capital Group Ltd. (ACGL) has a P/E ratio of about 16.58. The stock’s beta is 0.74. Besides these, the trailing price-to-sales (P/S) ratio of 2.53, the price-to-book (PB) ratio of 1.91, and the price-to-cash flow ratio of 6.39 may also be considered.

Financial Health

According to company report, the long-term debt-to-equity ratio for the quarter ending December 30 was 0.23, and the total debt-to-equity ratio was 0.23. In the year ended December 30, operating margins totaled 14.80%. Based on annual data, ACGL earned $1.56 billion in gross profit and brought in $9.61 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 8.90%. Return on equity (ROE) for the past 12 months was 12.30%.

In Arch Capital Group Ltd.’s quarter-end financial report for December 30, it reported total debt of $2.73 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. ACGL’s revenue rose 24.7% to $2.39 billion during the quarter, while net income inched up to $3.07 billion. While analysts expected Arch Capital Group Ltd. to report $1.34 quarterly earnings, the actual figure was $2.14 per share, beating the consensus estimate by 59.70%. During the quarter, the company generated $1.03 billion in EBITDA. The value of shareholders’ equity is $371.2 million.

Technical Picture

This quick technical analysis looks at Arch Capital Group Ltd.’s (ACGL) price momentum. With a historical volatility rate of 54.57%, the RSI 9-day stood at 36.83% on 17 March.

With respect to its five-day moving average, the current Arch Capital Group Ltd. price is down by -5.19% percent or -$3.46. At present, ACGL shares trade -5.89% below its 20-day simple moving average and +30.94% percent above its 100-day simple moving average. However, the stock is currently trading approximately +0.61% above its SMA50 and +33.06% above its SMA200.

Stochastic coefficient K was 17.65% and Stochastic coefficient D was 20.98%, while ATR was 2.39. Given the Stochastic reading of 10.31% for the 14-day period, the RSI (14) reading has been calculated as 40.29%. As of today, the MACD Oscillator reading stands at -2.76, while the 14-day reading stands at -4.27.


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