Multiple insiders bought Ambac Financial Group, Inc. (NYSE:AMBC) stock earlier this year, a positive sign for shareholders
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Ambac Financial Group, Inc. (NYSE:AMBC), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Ambac Financial Group
The Last 12 Months Of Insider Transactions At Ambac Financial Group
In the last twelve months, the biggest single purchase by an insider was when President Claude LeBlanc bought US$159k worth of shares at a price of US$15.91 per share. That means that an insider was happy to buy shares at above the current price of US$8.15. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Ambac Financial Group insiders bought shares during the last year, they didn't sell. The average buy price was around US$14.31. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Ambac Financial Group Insiders Bought Stock Recently
It's good to see that Ambac Financial Group insiders have made notable investments in the company's shares. Overall, two insiders shelled out US$163k for shares in the company -- and none sold. That shows some optimism about the company's future.
Does Ambac Financial Group Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Ambac Financial Group insiders own about US$7.0m worth of shares (which is 1.8% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Ambac Financial Group Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Ambac Financial Group insiders are expecting a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 3 warning signs (1 makes us a bit uncomfortable!) that you ought to be aware of before buying any shares in Ambac Financial Group.
Of course Ambac Financial Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
