Arch Capital (ACGL) Fell after Strong Q1

Written by Emily J. Thompson, Senior Investment Analyst

ACGL+0.49%

ACGLO+0.28%

ACGLN+0.74%

Source: Yahoo Finance

Updated: Jul 22 2025

0mins

Source: Yahoo Finance

Madison Large Cap Fund Performance: In Q2 2025, Madison Large Cap Fund (Class Y) increased by 3.1%, underperforming the S&P 500's 10.9% gain, with Arch Capital Group Ltd. noted as a significant detractor due to its recent stock performance.
Investment Insights on Arch Capital Group: Despite Arch Capital Group's potential, Madison Investments suggests that certain AI stocks may offer better upside potential and lower risk, indicating a shift in investment focus among hedge funds.

ACGL

$92.96+Infinity%1D

Analyst Views on ACGL

Wall Street analysts forecast ACGL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ACGL is 107.62 USD with a low forecast of 93.00 USD and a high forecast of 131.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

13 Analyst Rating

6 Buy

6 Hold

1 Sell

Moderate Buy

Current: 92.510

Low

93.00

Averages

107.62

High

131.00

Current: 92.510

Low

93.00

Averages

107.62

High

131.00

Barclays

Alex Scott

Equal Weight

maintain

$99 -> $104

2026-01-08

Reason

Barclays

Alex Scott

Price Target

$99 -> $104

AI Analysis

2026-01-08

maintain

Equal Weight

Reason

Barclays analyst Alex Scott raised the firm's price target on Arch Capital to $104 from $99 and keeps an Equal Weight rating on the shares. The firm adjusted ratings and price targets as part of its 2026 outlook for the North America property and casualty Insurance group. Pricing is softening across commercial and reinsurance, while personal lines look relatively better and brokers face organic growth headwinds, the analyst tells investors in a research note. Barclays recommends staying selective.

Evercore ISI

David Motemaden

In Line

maintain

$97 -> $100

2026-01-07

Reason

Evercore ISI

David Motemaden

Price Target

$97 -> $100

2026-01-07

maintain

In Line

Reason

Evercore ISI analyst David Motemaden raised the firm's price target on Arch Capital to $100 from $97 and keeps an In Line rating on the shares. With a tough cyclical backdrop, 2026 is "shaping up to be a challenging year for the P&C insurance sector," but this presents "a stock pickers market with opportunities for discerning investors," the analyst says in a year-ahead outlook note for the group.

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Goldman Sachs

Robert Cox

Sell

maintain

$84 -> $93

2026-01-07

Reason

Goldman Sachs

Robert Cox

Price Target

$84 -> $93

2026-01-07

maintain

Sell

Reason

Goldman Sachs analyst Robert Cox raised the firm's price target on Arch Capital to $93 from $84 and keeps a Sell rating on the shares. In a sector note on Americas Insurance, the firm said it expects "strong and fairly resilient" insurer profitability for the next few years, but added that it believes we are "solidly in the softening phase" of the P&C insurance cycle, which leads to "increased capital supply and competition, which should drive a deceleration in growth/pricing/margins, that we think are broadly underappreciated within Street estimates."

JPMorgan

Jimmy Bhullar

Neutral

maintain

$111 -> $117

2026-01-07

Reason

JPMorgan

Jimmy Bhullar

Price Target

$111 -> $117

2026-01-07

maintain

Neutral

Reason

JPMorgan analyst Jimmy Bhullar raised the firm's price target on Arch Capital to $117 from $111 and keeps a Neutral rating on the shares. The firm adjusted targets in the property and casualty insurance sector as part of its 2026 outlook. While fundamentals in the P&C sector "are getting more challenging," pricing, margin, and growth headwinds "seem better reflected in sentiment and valuation levels," the analyst tells investors in a research note.

About ACGL

Arch Capital Group Ltd. is a Bermuda-based company, which provides insurance, reinsurance, and mortgage insurance through its subsidiaries. The insurance segment consists of the Company’s insurance underwriting units, which offer specialty product lines, including construction and national accounts; excess and surplus casualty; professional lines; programs; property, energy, marine and aviation; travel, accident and health; warranty and lender solutions, and others (consisting of alternative markets, excess workers' compensation and surety business). The reinsurance segment consists of its reinsurance underwriting units, which offer specialty product lines, including casualty; marine and aviation; other specialty; property catastrophe; property excluding property catastrophe, and others (consisting of life reinsurance and other). The mortgage segment includes its United States primary mortgage insurance business, investment and services related to United States credit-risk transfer.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.