Whilst it may not be a huge deal, we thought it was good to see that the Ambac Financial Group, Inc. (NYSE:AMBC) President, Claude LeBlanc, recently bought US$99k worth of stock, for US$11.75 per share. Although the purchase is not a big one, increasing shareholding by only 6.2%, it can be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Ambac Financial Group
Notably, that recent purchase by Claude LeBlanc is the biggest insider purchase of Ambac Financial Group shares that we've seen in the last year. That implies that an insider found the current price of US$12.83 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Ambac Financial Group share holders is that insiders were buying at near the current price.
In the last twelve months Ambac Financial Group insiders were buying shares, but not selling. The average buy price was around US$14.27. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Ambac Financial Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Ambac Financial Group
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Ambac Financial Group insiders own 1.0% of the company, worth about US$5.7m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Ambac Financial Group Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Ambac Financial Group stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Ambac Financial Group has 2 warning signs (and 1 which is potentially serious) we think you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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