Abacus Life (NASDAQ:ABL) Shares Gap Up on Strong 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.

Abacus Life, Inc. (NASDAQ:ABL - Get Free Report)'s stock price gapped up before the market opened 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.

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

Analyst Ratings Changes

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

Institutional Investors Weigh In On Abacus Life

Several hedge funds have recently made changes to their positions in the company. Alyeska Investment Group L.P. boosted its position in shares of Abacus Life by 116.5% during the fourth quarter. Alyeska Investment Group L.P. now owns 2,540,790 shares of the company's stock valued at $19,894,000 after purchasing an additional 1,367,210 shares in the last quarter. Goldman Sachs Group Inc. raised its stake in Abacus Life by 13.0% during the first quarter. Goldman Sachs Group Inc. now owns 1,928,293 shares of the company's stock valued at $14,443,000 after buying an additional 221,712 shares during the last quarter. Royce & Associates LP raised its stake in Abacus Life by 39.6% during the first quarter. Royce & Associates LP now owns 1,824,253 shares of the company's stock valued at $13,664,000 after buying an additional 517,822 shares during the last quarter. Allspring Global Investments Holdings LLC raised its stake in Abacus Life by 6.2% during the second quarter. Allspring Global Investments Holdings LLC now owns 1,475,053 shares of the company's stock valued at $7,818,000 after buying an additional 86,705 shares during the last quarter. Finally, Mendon Capital Advisors Corp raised its stake in Abacus Life by 9.1% during the first quarter. Mendon Capital Advisors Corp now owns 1,422,171 shares of the company's stock valued at $10,652,000 after buying an additional 118,345 shares during the last quarter.

Abacus Life Stock Up 8.0%

The stock has a 50 day simple moving average of $5.54 and a 200-day simple moving average of $7.03. The firm has a market cap of $575.29 million, a PE ratio of -99.00 and a beta of 0.01. The company has a debt-to-equity ratio of 0.55, a current ratio of 0.47 and a quick ratio of 0.47.

About Abacus Life

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.