Ambac Financial Group, Inc. (NYSE:AMBC) Sees Large Drop in Short Interest

Key Points

• Ambac Financial Group experienced a 22.5% decrease in short interest in August, with 2,370,000 shares short sold as of August 15th.
• Truist Financial initiated coverage with a buy rating and a $10.00 price target, while the consensus rating stands at "Buy" with a target of $12.50.
• Insider transactions included CEO Claude Leblanc purchasing 25,000 shares at an average price of $7.03, increasing his ownership stake in the company.

Ambac Financial Group, Inc. (NYSE:AMBC - Get Free Report) saw a significant decrease in short interest in the month of August. As of August 15th, there was short interest totaling 2,370,000 shares, adecreaseof22.5% from the July 31st total of 3,060,000 shares. Based on an average daily trading volume, of 981,900 shares, the days-to-cover ratio is presently 2.4 days. Approximately5.7% of the company's shares are short sold. Approximately5.7% of the company's shares are short sold. Based on an average daily trading volume, of 981,900 shares, the days-to-cover ratio is presently 2.4 days.

Wall Street Analysts Forecast Growth

Separately, Truist Financial assumed coverage on shares of Ambac Financial Group in a report on Tuesday, July 15th. They issued a "buy" rating and a $10.00 price target for the company. One analyst has rated the stock with a Strong Buy rating and two have issued a Buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus price target of $12.50.

Insider Buying and Selling at Ambac Financial Group

In other news, CEO Claude Leblanc acquired 25,000 shares of the firm's stock in a transaction dated Monday, August 11th. The stock was bought at an average cost of $7.03 per share, for a total transaction of $175,750.00. Following the completion of the transaction, the chief executive officer directly owned 603,291 shares in the company, valued at $4,241,135.73. This represents a 4.32% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. 6.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Ambac Financial Group

A number of hedge funds have recently added to or reduced their stakes in the stock. Continental General Insurance Co. acquired a new position in Ambac Financial Group during the 2nd quarter valued at about $8,650,000. Gendell Jeffrey L boosted its holdings in Ambac Financial Group by 99.0% during the second quarter. Gendell Jeffrey L now owns 1,198,420 shares of the company's stock worth $8,509,000 after purchasing an additional 596,134 shares during the last quarter. Geode Capital Management LLC boosted its holdings in Ambac Financial Group by 2.5% during the second quarter. Geode Capital Management LLC now owns 1,122,616 shares of the company's stock worth $7,972,000 after purchasing an additional 27,670 shares during the last quarter. Prescott Group Capital Management L.L.C. boosted its holdings in Ambac Financial Group by 98.0% during the second quarter. Prescott Group Capital Management L.L.C. now owns 875,977 shares of the company's stock worth $6,219,000 after purchasing an additional 433,613 shares during the last quarter. Finally, Nuveen Asset Management LLC boosted its holdings in Ambac Financial Group by 65.5% during the fourth quarter. Nuveen Asset Management LLC now owns 824,357 shares of the company's stock worth $10,428,000 after purchasing an additional 326,149 shares during the last quarter. Institutional investors and hedge funds own 84.49% of the company's stock.

Ambac Financial Group Trading Down 0.3%

Shares of AMBC traded down $0.03 on Tuesday, reaching $9.15. The company's stock had a trading volume of 83,501 shares, compared to its average volume of 985,034. Ambac Financial Group has a twelve month low of $5.99 and a twelve month high of $13.64. The stock has a market capitalization of $424.65 million, a PE ratio of -0.67 and a beta of 0.96. The firm has a fifty day moving average of $8.24 and a 200-day moving average of $8.03.

Ambac Financial Group (NYSE:AMBC - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The company reported ($0.22) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.24) by $0.02. The business had revenue of $16.20 million during the quarter, compared to the consensus estimate of $55.59 million. Ambac Financial Group had a negative return on equity of 3.50% and a negative net margin of 215.40%. As a group, equities analysts anticipate that Ambac Financial Group will post 0.6 EPS for the current fiscal year.

About Ambac Financial Group

Ambac Financial Group, Inc operates as a financial services holding company. It operates three businesses: Specialty Property and Casualty Insurance, Insurance Distribution, and Legacy Financial Guarantee (LFG) Insurance. The Specialty Property and Casualty Insurance business provides specialty property and casualty program insurance with a focus commercial and personal liability risks.

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