Ambac Financial Group (NYSE:AMBC) Announces Quarterly Earnings Results

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 data on Thursday, August 7th. The company reported ($0.22) earnings per share for the quarter, topping analysts' consensus estimates of ($0.24) by $0.02, Zacks reports. The firm had revenue of $16.20 million during the quarter, compared to analyst estimates of $55.59 million. Ambac Financial Group had a negative return on equity of 3.50% and a negative net margin of 215.40%.

Ambac Financial Group Price Performance

Shares of NYSE AMBC traded down $0.19 during mid-day trading on Thursday, reaching $8.03. The company's stock had a trading volume of 580,578 shares, compared to its average volume of 1,059,027. The firm has a market capitalization of $372.41 million, a PE ratio of -0.59 and a beta of 0.92. The stock has a fifty day moving average of $7.60 and a two-hundred day moving average of $8.41. Ambac Financial Group has a 52 week low of $5.99 and a 52 week high of $13.64.

Insider Buying and Selling

In other news, CEO Claude Leblanc purchased 25,000 shares of the company's stock in a transaction that occurred on Monday, August 11th. The stock was bought at an average cost of $7.03 per share, with a total value of $175,750.00. Following the completion of the purchase, the chief executive officer owned 603,291 shares in the company, valued at approximately $4,241,135.73. This represents a 4.32% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 6.20% of the company's stock.

Hedge Funds Weigh In On Ambac Financial Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AMBC. Marshall Wace LLP raised its holdings in shares of Ambac Financial Group by 215.5% in the second quarter. Marshall Wace LLP now owns 648,155 shares of the company's stock worth $4,602,000 after buying an additional 442,750 shares during the period. Millennium Management LLC raised its holdings in shares of Ambac Financial Group by 142.7% in the first quarter. Millennium Management LLC now owns 508,686 shares of the company's stock worth $4,451,000 after buying an additional 299,094 shares during the period. Walleye Capital LLC raised its holdings in shares of Ambac Financial Group by 174.7% in the second quarter. Walleye Capital LLC now owns 38,094 shares of the company's stock worth $270,000 after buying an additional 89,094 shares during the period. Norges Bank purchased a new stake in shares of Ambac Financial Group in the second quarter worth approximately $532,000. Finally, Qube Research & Technologies Ltd purchased a new stake in shares of Ambac Financial Group in the second quarter worth approximately $267,000. 84.49% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Separately, Truist Financial assumed coverage on Ambac Financial Group in a research note on Tuesday, July 15th. They issued a "buy" rating and a $10.00 price objective 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.