Ambac Financial Group (NYSE:AMBC) Shares Gap Up on Strong Earnings

Shares of Ambac Financial Group, Inc. (NYSE:AMBC) gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $15.12, but opened at $16.69. Ambac Financial Group shares last traded at $16.99, with a volume of 122,549 shares trading hands.

The company reported $0.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.21 by $0.61. The company had revenue of $103.00 million for the quarter. Ambac Financial Group had a return on equity of 6.99% and a net margin of 1.48%. During the same period in the previous year, the firm earned ($0.30) EPS.

Wall Street Analyst Weigh In

Several research firms have commented on AMBC. Compass Point lifted their target price on shares of Ambac Financial Group from $18.00 to $19.00 and gave the stock a “buy” rating in a research report on Wednesday. StockNews.com raised Ambac Financial Group from a “sell” rating to a “hold” rating in a research report on Wednesday.

Institutional Investors Weigh In On Ambac Financial Group

Hedge funds have recently modified their holdings of the stock. Hsbc Holdings PLC boosted its position in Ambac Financial Group by 27.3% during the third quarter. Hsbc Holdings PLC now owns 305,185 shares of the company’s stock worth $3,723,000 after purchasing an additional 65,366 shares during the period. Cornerstone Investment Partners LLC purchased a new position in shares of Ambac Financial Group in the fourth quarter valued at $178,000. Invesco Ltd. grew its position in shares of Ambac Financial Group by 5.9% in the third quarter. Invesco Ltd. now owns 885,456 shares of the company’s stock valued at $10,679,000 after purchasing an additional 49,529 shares in the last quarter. American Century Companies Inc. lifted its holdings in Ambac Financial Group by 20.6% during the 3rd quarter. American Century Companies Inc. now owns 427,678 shares of the company’s stock worth $5,158,000 after purchasing an additional 73,191 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. boosted its stake in Ambac Financial Group by 2.3% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 640,084 shares of the company’s stock worth $7,719,000 after purchasing an additional 14,466 shares during the period. Institutional investors own 84.49% of the company’s stock.

Ambac Financial Group Stock Up 0.1 %

The stock has a fifty day simple moving average of $15.19 and a two-hundred day simple moving average of $15.23. The firm has a market cap of $828.88 million, a PE ratio of 122.14 and a beta of 1.30. The company has a current ratio of 0.72, a quick ratio of 0.72 and a debt-to-equity ratio of 2.46.

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.