Institutional Investors Adjust Stakes in Ambac Financial Group Amid Mixed Earnings

In the fourth quarter, D. E. Shaw & Co. Inc. reduced its stake in Ambac Financial Group by 9.3%, selling 44,326 shares and retaining 431,135 shares valued at approximately $5.45 million. Several other institutional investors also adjusted their positions in Ambac shares: Barclays PLC increased holdings by 30.9%, JPMorgan Chase & Co. by 56.9%, Exchange Traded Concepts LLC by 4.3%, Empowered Funds LLC by 5.1%, and Rhumbline Advisers by 6.4%. Overall, hedge funds and institutional investors hold 84.49% of Ambac's stock, indicating significant institutional interest.

In insider transactions, director Jeffrey Scott Stein increased his stake by 42.86%, acquiring 15,000 shares valued at nearly $97,000, now totaling 50,000 shares worth about $323,000. As of May 19, 2023, Ambac's stock opened at $8.07, trading between a 12-month range of $5.99 to $18.40. The company exhibits a quick ratio and current ratio of 0.58, with a debt-to-equity ratio of 2.10, reflecting its balance sheet leverage. Ambac's market capitalization stands at approximately $412.2 million with a negative price-to-earnings ratio of -17.54 and a beta of 0.86.

In its most recent quarterly earnings released May 12, 2023, Ambac reported a loss per share of $0.13, missing analyst estimates. Revenues were $15.68 million, significantly below expectations of $33 million. The firm posted a negative net margin of 6.28% but maintained a positive return on equity of 2.51%.

Analyst consensus projects a positive EPS of 0.6 for the current fiscal year, indicating expectations of profitability improvement. Ambac Financial Group operates as a financial services holding company with three primary businesses: Specialty Property and Casualty Insurance, Insurance Distribution, and Legacy Financial Guarantee Insurance.

The Specialty Property and Casualty segment focuses on specialty commercial and personal liability insurance programs. Institutional trading activity and financial performance metrics suggest investor attention on Ambac's business turnaround and strategy execution in specialty insurance markets.