Axis Capital (NYSE:AXS) Downgraded by Zacks Research to Strong Sell

Zacks Research cut shares of Axis Capital (NYSE:AXS) from a hold rating to a strong sell rating in a report released on Wednesday morning,Zacks.com reports. Zacks Research also issued estimates for Axis Capital’s Q3 2026 earnings at $2.87 EPS, Q4 2026 earnings at $3.45 EPS, FY2026 earnings at $12.58 EPS, Q1 2027 earnings at $3.25 EPS, Q2 2027 earnings at $3.43 EPS, Q3 2027 earnings at $3.29 EPS, Q4 2027 earnings at $3.66 EPS, FY2027 earnings at $13.64 EPS, Q1 2028 earnings at $3.59 EPS, Q2 2028 earnings at $3.76 EPS and FY2028 earnings at $14.62 EPS.

A number of other brokerages have also commented on AXS. Keefe, Bruyette & Woods dropped their price target on Axis Capital from $131.00 to $125.00 and set an “outperform” rating for the company in a research note on Tuesday, August 4th. Bank of America dropped their price target on Axis Capital from $115.00 to $106.00 and set a “neutral” rating on the stock in a research report on Tuesday, April 14th. UBS Group dropped their price target on shares of Axis Capital from $131.00 to $126.00 and set a “buy” rating on the stock in a research note on Monday, August 3rd. Atlantic Securities set a $122.00 price objective on Axis Capital in a research report on Wednesday, July 15th. Finally, BMO Capital Markets reaffirmed a “market perform” rating on shares of Axis Capital in a report on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $120.50.

Axis Capital Trading Up 0.6%

Shares of AXS stock opened at $100.07 on Wednesday. The stock has a market capitalization of $7.30 billion, a PE ratio of 7.11, a P/E/G ratio of 4.34 and a beta of 0.50. Axis Capital has a 1-year low of $88.07 and a 1-year high of $119.99. The company has a debt-to-equity ratio of 0.26, a current ratio of 0.64 and a quick ratio of 0.64. The business has a 50-day moving average of $107.36 and a 200 day moving average of $103.30.

Axis Capital (NYSE:AXS) last issued its earnings results on Wednesday, July 29th. The insurance provider reported $2.84 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.25 by ($0.41). The firm had revenue of $1.75 billion during the quarter, compared to the consensus estimate of $1.74 billion. Axis Capital had a return on equity of 17.00% and a net margin of 16.23%.The firm’s revenue for the quarter was up 7.4% on a year-over-year basis. During the same quarter in the prior year, the business posted $3.29 EPS. As a group, sell-side analysts anticipate that Axis Capital will post 12.39 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Activest Wealth Management bought a new position in shares of Axis Capital in the fourth quarter worth about $30,000. Assetmark Inc. boosted its position in shares of Axis Capital by 80.8% during the 1st quarter. Assetmark Inc. now owns 396 shares of the insurance provider’s stock valued at $40,000 after acquiring an additional 177 shares during the last quarter. Cassaday & Co Wealth Management LLC purchased a new position in shares of Axis Capital in the 1st quarter worth $43,000. Fideuram Asset Management Ireland dac purchased a new position in Axis Capital in the fourth quarter worth about $47,000. Finally, DV Equities LLC purchased a new position in shares of Axis Capital in the 4th quarter worth approximately $54,000. Institutional investors own 93.44% of the company’s stock.

Key Axis Capital News

Here are the key news stories impacting Axis Capital this week:

• Positive Sentiment: AXS’s specialty-insurance focus, premium growth and capital-return potential support its long-term investment case. The stock also trades at a discount to parts of the insurance industry, which may offer valuation support if underwriting performance improves. AXS Lags Industry, Trades at a Discount: Here’s How to Play the Stock
• Neutral Sentiment: Zacks Research maintained its current full-year EPS estimate at $12.58 and forecasts fiscal 2027 earnings of $13.64. Those figures imply continued earnings growth, although they were accompanied by lower estimates for several individual quarters.
• Negative Sentiment: Zacks Research reduced its fiscal 2026 EPS estimate to $12.58 from $13.54. Quarterly estimates were also cut for Q3 2026 to $2.87 from $3.38, Q4 2026 to $3.45 from $3.58, Q2 2027 to $3.43 from $3.71, Q3 2027 to $3.29 from $3.69, and Q2 2028 to $3.76 from $3.88.
• Negative Sentiment: Longer-term projections were lowered as well: fiscal 2027 EPS fell to $13.64 from $14.35, while fiscal 2028 EPS declined to $14.62 from $14.97. Additional revisions cut Q1 2027 EPS to $3.25 from $3.40 and Q1 2028 EPS to $3.59 from $3.78.
• Negative Sentiment: The estimate reductions suggest analysts see greater pressure on Axis Capital’s earnings outlook, potentially from catastrophe losses, competitive pricing and weaker underwriting margins. This is notable because the company’s most recent quarterly EPS of $2.84 already missed the $3.25 consensus estimate, despite revenue exceeding expectations.

Axis Capital Company Profile

AXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products in Bermuda, the United States, and internationally. It operates through two segments, Insurance and Reinsurance. The Insurance segment offers professional insurance products that cover directors' and officers' liability, errors and omissions, employment practices, fiduciary, crime, professional indemnity, medical malpractice, and other financial insurance related coverages for commercial enterprises, financial institutions, not-for-profit organizations, and other professional service providers; and property insurance products for commercial buildings, residential premises, construction projects, property in transit, onshore renewable energy installations, and physical damage and business interruption following an act of terrorism.