Ambac Financial Group Inc. [NYSE: AMBC] jumped around 1.42 points on Tuesday, while shares priced at $16.06 at the close of the session, up 9.70%. The company report on November 10, 2020 that Ambac Reports Third Quarter 2020 Results.
Ambac Financial Group, Inc. (NYSE: AMBC) (“Ambac”), a financial services holding company whose subsidiaries include run-off financial guarantors, Ambac Assurance Corporation (“AAC”) and Ambac Assurance UK Limited (“Ambac UK”), reported a Net Loss attributable to common stockholders of $108 million or $2.33 per diluted share and an Adjusted Loss(1) of $93 million or $2.01 per diluted share for the quarter ended September 30, 2020. This compares to a Net Loss attributable to common stockholders of $35 million or $0.77 per diluted share and an Adjusted Loss of $24 million or $0.52 per diluted share in the second quarter of 2020. Book Value per Share decreased $0.75 to $22.59 and Adjusted Book Value per Share(1) decreased $1.62 to $19.44 at September 30, 2020 from June 30, 2020.
The results for the third quarter of 2020 were primarily driven by an increase in loss and loss expense reserves due to Puerto Rico and RMBS.
Ambac Financial Group Inc. stock is now -25.54% down from its year-to-date (YTD) trading value. AMBC Stock saw the intraday high of $16.97 and lowest of $15.30 per share. The company’s 52-week high price is 22.90, which means current price is +83.75% above from all time high which was touched on 01/17/20.
Compared to the average trading volume of 348.48K shares, AMBC reached a trading volume of 1053500 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about Ambac Financial Group Inc. [AMBC]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for AMBC shares is $14.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on AMBC stock is a recommendation set at 3.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
MKM Partners have made an estimate for Ambac Financial Group Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on May 12, 2017. While these analysts kept the previous recommendation, MKM Partners dropped their target price from $27 to $10. The new note on the price target was released on December 19, 2016, representing the official price target for Ambac Financial Group Inc. stock. Previously, the target price had yet another raise from $20 to $27, while MKM Partners kept a Neutral rating on AMBC stock. On August 11, 2015, analysts decreased their price target for AMBC shares from 25 to 16.50.
The Average True Range (ATR) for Ambac Financial Group Inc. is set at 0.76, with the Price to Sales ratio for AMBC stock in the period of the last 12 months amounting to 4.29. The Price to Book ratio for the last quarter was 0.72, with the Price to Cash per share for the same quarter was set at 0.81.
How has AMBC stock performed recently?
Ambac Financial Group Inc. [AMBC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 6.64. With this latest performance, AMBC shares gained by 30.78% in over the last four-week period, additionally plugging by 11.53% over the last 6 months – not to mention a drop of -22.45% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for AMBC stock in for the last two-week period is set at 66.50, with the RSI for the last a single of trading hit 70.22, and the three-weeks RSI is set at 64.41 for Ambac Financial Group Inc. [AMBC]. The present Moving Average for the last 50 days of trading for this stock 13.57, while it was recorded at 15.27 for the last single week of trading, and 14.12 for the last 200 days.
Ambac Financial Group Inc. [AMBC]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Ambac Financial Group Inc. [AMBC] shares currently have an operating margin of +17.14. Ambac Financial Group Inc.’s Net Margin is presently recorded at -43.55.
Return on Total Capital for AMBC is now 0.91, given the latest momentum, and Return on Invested Capital for the company is -2.31. Return on Equity for this stock declined to -14.08, with Return on Assets sitting at -1.54. When it comes to the capital structure of this company, Ambac Financial Group Inc. [AMBC] has a Total Debt to Total Equity ratio set at 501.35. Additionally, AMBC Total Debt to Total Capital is recorded at 83.37, with Total Debt to Total Assets ending up at 55.41. Long-Term Debt to Equity for the company is recorded at 501.08, with the Long-Term Debt to Total Capital now at 83.33.
Reflecting on the efficiency of the workforce at the company, Ambac Financial Group Inc. [AMBC] managed to generate an average of -$2,076,923 per employee.
Earnings analysis for Ambac Financial Group Inc. [AMBC]
With the latest financial reports released by the company, Ambac Financial Group Inc. posted -1.91/share EPS, while the average EPS was predicted by analysts to be reported at -0.46/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -315.20%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for AMBC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Ambac Financial Group Inc. go to 11.00%.
Insider trade positions for Ambac Financial Group Inc. [AMBC]
There are presently around $588 million, or 80.70% of AMBC stock, in the hands of institutional investors. The top three institutional holders of AMBC stocks are: BLACKROCK INC. with ownership of 6,274,317, which is approximately -1.694% of the company’s market cap and around 0.89% of the total institutional ownership; VANGUARD GROUP INC, holding 4,476,968 shares of the stock with an approximate value of $71.9 million in AMBC stocks shares; and FMR LLC, currently with $33.09 million in AMBC stock with ownership of nearly 0% of the company’s market capitalization.
Positions in Ambac Financial Group Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 55 institutional holders increased their position in Ambac Financial Group Inc. [NYSE:AMBC] by around 3,303,364 shares. Additionally, 64 investors decreased positions by around 3,728,846 shares, while 33 investors held positions by with 29,558,749 shares. The mentioned changes placed institutional holdings at 36,590,959 shares, according to the latest SEC report filing. AMBC stock had 14 new institutional investments in for a total of 1,143,086 shares, while 19 institutional investors sold positions of 2,474,254 shares during the same period.