Ambac Financial Group (NYSE:AMBC) Posts Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Ambac Financial Group reported a quarterly earnings per share (EPS) of ($0.22), beating analysts' estimates of ($0.24) by $0.02 despite having revenue of only $16.20 million, far below the $55.59 million estimate.
• The stock of Ambac Financial Group opened at $6.93, and has seen a significant decrease of 16.4% following the earnings report.
• Institutional ownership is strong, with 84.49% of the stock held by institutional investors, while insiders hold 6.20% of the shares.

Ambac Financial Group (NYSE:AMBC - Get Free Report) released its quarterly earnings results on Thursday. The company reported ($0.22) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.24) by $0.02, Zacks reports. The firm had revenue of $16.20 million for the quarter, compared to analyst estimates of $55.59 million. Ambac Financial Group had a negative return on equity of 3.34% and a negative net margin of 215.40%.

Ambac Financial Group Trading Down 16.4%

AMBC stock opened at $6.93 on Friday. The firm has a 50 day moving average of $7.58 and a 200-day moving average of $8.50. Ambac Financial Group has a 12-month low of $5.99 and a 12-month high of $13.64. The company has a market cap of $321.95 million, a price-to-earnings ratio of -0.51 and a beta of 0.92.

Insider Activity

In related news, Director Jeffrey Scott Stein acquired 15,000 shares of the business's stock in a transaction that occurred on Wednesday, May 14th. The stock was purchased at an average cost of $6.46 per share, for a total transaction of $96,900.00. Following the transaction, the director directly owned 50,000 shares of the company's stock, valued at approximately $323,000. This trade represents a 42.86% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 6.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Empowered Funds LLC grew its stake in Ambac Financial Group by 7.4% in the 1st quarter. Empowered Funds LLC now owns 195,127 shares of the company's stock worth $1,707,000 after acquiring an additional 13,494 shares during the period. Creative Planning purchased a new stake in Ambac Financial Group in the 2nd quarter worth approximately $145,000. Finally, Millennium Management LLC grew its stake in Ambac Financial Group by 142.7% in the 1st quarter. Millennium Management LLC now owns 508,686 shares of the company's stock worth $4,451,000 after acquiring an additional 299,094 shares during the period. 84.49% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Separately, Truist Financial began coverage on shares of Ambac Financial Group in a research report on Tuesday, July 15th. They set a "buy" rating and a $10.00 price target for the company.

Ambac Financial Group Company Profile

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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