What Happened?
Shares of specialty insurance provider Skyward Specialty Insurance (NASDAQ:SKWD) jumped 4.7% in the afternoon session after the company received the necessary regulatory approvals for its acquisition of Apollo Group Holdings Limited and announced strong financial guidance for 2026. The transaction was expected to close early in the first quarter of 2026. Looking ahead, Skyward Specialty projected its gross written premiums for the 2026 fiscal year to be between $2.65 billion and $2.8 billion. The company also forecast net income to range from $207 million to $216 million. In response to these developments, a Citizens JMP analyst maintained a Buy rating on the stock and increased the price target to $80 from $75 per share, signaling confidence in the company's direction.
The shares closed the day at $47.07, up 4.2% from previous close.
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What Is The Market Telling Us
Skyward Specialty Insurance’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 5.7% on the news that the company announced a definitive agreement to acquire Lloyd’s specialist, Apollo Group Holdings Limited, for a total consideration of $555 million. The deal, consisting of $371 million in cash and $184 million in stock, is expected to significantly benefit Skyward's financial performance. The company projects the acquisition will deliver double-digit adjusted operating earnings per share (EPS) accretion in the first full year after closing and add over $1.5 billion in managed premium. Strategically, the move provides Skyward with a strong source of inorganic growth and diversification into the Lloyd's market, opening up new specialty business areas. Following the news, JMP Securities reiterated its 'Market Outperform' rating and raised its price target on the stock from $65 to $70, signaling confidence in the company's prospects.
Skyward Specialty Insurance is down 3.8% since the beginning of the year, and at $47.17 per share, it is trading 27.4% below its 52-week high of $65 from June 2025. Investors who bought $1,000 worth of Skyward Specialty Insurance’s shares at the IPO in January 2023 would now be looking at an investment worth $2,470.
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