What happens to stocks if AI loses momentum?
ORLANDO - Abacus Global Management, Inc. (NASDAQ: ABL), an alternative asset management firm trading at $6.26 per share and currently showing signs of being undervalued according to InvestingPro analysis, has publicly responded to what it calls a "false and misleading short attack." The company, which specializes in buying and selling life insurance policies, has been operating for over 20 years and attributes its success to long-standing and trusted relationships in the industry.
In light of recent accusations of using flawed data for over-valuing its insurance product assets, Abacus pointed to its first-quarter financial results as evidence of its ongoing viability and profitability. While the company reported impressive revenue growth of 73% in the last twelve months and maintains a strong gross profit margin of 88%, InvestingPro data indicates the company is quickly burning through cash with negative free cash flow. As reported on May 8, 2025, in its 10-Q filing, the company realized gains of nearly 40% on a capital deployment of $126 million, with a marginal error of 2% from the previous quarter’s valuation mark.
CEO Jay Jackson defended the company’s record, stating, "Our returns and valuation are audited, and consistent with a 20-year track record of generating positive revenue." He dismissed the allegations as fiction propagated by a major competitor and assured stakeholders that Abacus would continue its growth trajectory.
Abacus emphasized its unique position as the only publicly traded entity in its market segment, which subjects it to higher regulatory scrutiny compared to privately-held competitors. Despite current challenges, analysts maintain a bullish outlook with price targets ranging from $12 to $15, significantly above the current trading price. The company plans to release a detailed rebuttal to the short seller’s claims and intends to pursue legal action against those responsible for the attack. Get deeper insights into ABL’s valuation and 7 additional key ProTips with InvestingPro.
While the press release included forward-looking statements about Abacus’s financial and operational outlook, it also acknowledged the uncertainties and risks inherent in such predictions. Financial metrics support these concerns, with a current ratio of 0.47 indicating potential liquidity challenges. The company noted that its loss reserves are based on estimates that could be insufficient for actual losses, and it acknowledged other business risks including pricing of policies, geographical concentration, industry cyclicality, regulatory impacts, competition, investment objectives, and the ability to raise capital. Access comprehensive analysis and the full Pro Research Report for ABL, along with 1,400+ other stocks, exclusively on InvestingPro.
This news article is based on a press release statement from Abacus Global Management.
In other recent news, Abacus Global Management reported a substantial increase in revenue for the first quarter of 2025, with figures more than doubling to $44.1 million compared to the same period last year. The company’s adjusted net income also saw a significant rise of 158%, reaching $17.3 million. This growth comes amid the company’s strategic initiatives to expand its product offerings and strengthen its market position. Meanwhile, Abacus Global Management has implemented changes to its executive compensation structure, including salary increases and performance-based incentives, aligning with market standards and company performance goals.
Additionally, a report from short seller Morpheus Research has cast doubts on Abacus Life’s asset valuation practices, alleging potential overvaluation of life settlement assets. This report has raised questions about the company’s business model, impacting investor sentiment. Abacus Global Management’s recent earnings call highlighted positive guidance for the full year, projecting adjusted net income between $70 million and $78 million, indicating potential growth. The company is also exploring mergers and acquisitions to bolster its market position further. Despite these developments, Abacus Global Management remains focused on executing its growth strategy and maintaining investor confidence.
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