10 Best Breakout Stocks To Invest In Right Now

8. Arch Capital Group Ltd. (NASDAQ:ACGL)

Number of Hedge Fund Holders: 37

Arch Capital Group Ltd. (NASDAQ:ACGL), headquartered in Bermuda, provides insurance, reinsurance, and mortgage insurance globally, with a specialization in niche areas of the insurance market that deal with complex and unique risks.

In the second quarter of 2024, Arch Capital Group Ltd. (NASDAQ:ACGL) delivered outstanding results, reporting operating earnings per share of $2.57, far exceeding analyst expectations of $2.09 and consensus estimates of $2.21. This strong performance was attributed to favorable reserve development, higher-than-expected net investment income (NII), and improved underwriting results. The company’s book value also saw a robust sequential growth of 7%, reaching $52.75, showcasing its financial stability.

Analysts have adjusted their price targets for ACGL following these results. Citi initiated coverage with a Neutral rating and a $114 price target, while Roth/MKM raised their target to $125. On the other hand, BMO Capital Markets set a target of $98, introducing a 2026 EPS estimate of $9.76, while Keefe, Bruyette & Woods increased their target to $121 and revised their EPS projections for 2024 and 2025 to $8.55 and $9.30, respectively.

In the second quarter of 2024, 37 hedge funds held stakes in Arch Capital Group Ltd. (NASDAQ:ACGL), with total holdings valued at $1.35 billion. Egerton Capital Limited emerged as the largest shareholder, holding a stake worth $326.2 million as of June 30.