In a recent move, Matus Kristi Ann, a director of Ambac Financial Group Inc . (NYSE:AMBC), acquired a significant number of shares in the company. The transactions, which took place on two different days, resulted in Matus adding a total of 9,000 shares to her holdings, with a combined value surpassing $100,000.
The first purchase, which occurred on September 26, involved 2,700 shares at a price of $11.27 each. The following day, Matus continued to increase her stake in the company by acquiring another 6,300 shares, this time at a slightly lower price of $11.16 per share. The transactions show a price range for these purchases between $11.16 and $11.27.
This series of acquisitions has brought Matus's total ownership in Ambac Financial Group Inc. to 9,000 shares directly held. The reported transactions were signed off by William J. White, attorney-in-fact, and filed on September 27.
Ambac Financial Group Inc., known for its role in the surety insurance industry, is incorporated in Delaware and has its business address at One World Trade Center, New York. With these latest purchases by a high-ranking director, investors may take a keen interest in the company's stock performance and strategic direction.
In other recent news, Ambac Financial has unveiled its Q2 2024 results, revealing a net loss of under $1 million, an adjusted net income of $8 million, and a consolidated EBITDA of $27 million. The company has also announced the impending sale of its legacy financial guarantee business to Oaktree Capital Management for a sum of $420 million. Another significant development is the completion of the Beat Capital acquisition, which projects a premium of $1.4 billion for 2024, positioning Ambac as a key player in the insurance distribution sector.
Roth/MKM has upgraded Ambac Financial from a Neutral to a Buy rating, setting a revised price target of $15.00, up from the previous $13.00. This upgrade is rooted in the company's strategic sale of its financial guarantee business and the initiation of a share repurchase program worth up to $50 million, set to begin after the sale's closure.
These recent developments indicate Ambac's transition to a specialty property and casualty company, aiming for growth in its insurance distribution business. Despite a slight net loss this quarter, the company has shown positive signs in its adjusted net income and EBITDA. Ambac's management has also expressed confidence in the company's growth opportunities and the current share price level.
InvestingPro Insights
The recent share purchases by director Matus Kristi Ann align with several intriguing financial metrics and insights from InvestingPro. Ambac Financial Group Inc. (NYSE:AMBC) is currently trading at a low Price to Book multiple of 0.38, suggesting the stock may be undervalued relative to its book value. This could explain why an insider like Matus is increasing her stake in the company.
Additionally, AMBC's Price to Earnings (P/E) ratio stands at a modest 6.76, further indicating potential undervaluation. This low earnings multiple, coupled with the expectation that net income is set to grow this year, as highlighted by an InvestingPro Tip, paints a potentially attractive picture for investors.
However, it's worth noting that the stock has taken a significant hit over the last six months, with a price total return of -26.24% during that period. This decline might have created an entry point for both insiders and outside investors who see long-term value in the company.
For those seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for AMBC, providing a deeper understanding of the company's financial health and market position. These insights could prove valuable for investors considering following the director's lead in acquiring AMBC shares.
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