Abacus Life (NASDAQ:ABL) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• Abacus Life (NASDAQ:ABL) experienced a significant increase in share price, opening at $5.97, after reporting $0.22 earnings per share, which surpassed analysts' expectations of $0.16.
• The company generated $56.23 million in revenue for the quarter, well above the consensus estimate of $43.38 million, highlighting stronger-than-anticipated financial performance.
• Analysts show optimism for the stock, with a consensus rating of "Buy" and an average price target of $13.70, reflecting positive outlook on future performance.

Shares of Abacus Life, Inc. (NASDAQ:ABL - Get Free Report) gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $5.50, but opened at $5.97. Abacus Life shares last traded at $5.97, with a volume of 433,827 shares changing hands.

The company reported $0.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.06. The firm had revenue of $56.23 million during the quarter, compared to the consensus estimate of $43.38 million. Abacus Life had a negative net margin of 0.72% and a positive return on equity of 18.19%.

Wall Street Analyst Weigh In

Several brokerages have issued reports on ABL. Wall Street Zen upgraded shares of Abacus Life from a "hold" rating to a "buy" rating in a research report on Saturday. Maxim Group began coverage on shares of Abacus Life in a research report on Tuesday, April 29th. They issued a "buy" rating and a $14.00 price target for the company. Finally, Piper Sandler dropped their price target on shares of Abacus Life from $12.00 to $10.00 and set an "overweight" rating for the company in a research report on Wednesday, July 2nd. Six analysts have rated the stock with a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Buy" and a consensus price target of $13.70.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. AlphaQuest LLC bought a new stake in shares of Abacus Life during the second quarter worth $25,000. Legal & General Group Plc bought a new stake in shares of Abacus Life during the second quarter worth $34,000. KLP Kapitalforvaltning AS bought a new stake in shares of Abacus Life during the second quarter worth $41,000. State of Wyoming bought a new stake in shares of Abacus Life during the first quarter worth $105,000. Finally, Squarepoint Ops LLC bought a new stake in shares of Abacus Life during the fourth quarter worth $113,000.

Abacus Life Trading Up 9.1%

The business's 50 day simple moving average is $5.50 and its two-hundred day simple moving average is $7.02. The stock has a market cap of $610.64 million, a P/E ratio of -105.10 and a beta of 0.01. The company has a quick ratio of 0.47, a current ratio of 0.47 and a debt-to-equity ratio of 0.55.

Abacus Life Company Profile

Abacus Life, Inc operates as an alternative asset manager specializing in life insurance products. It purchases life insurance policies from consumers seeking liquidity and manages policies over time via trading, holding, and/or servicing. The company was founded in 2004 and is based in Orlando, Florida.