Ambac stock touches 52-week low at $7.75 amid market challenges

Published 03/04/2025, 14:50
Ambac stock touches 52-week low at $7.75 amid market challenges

In a turbulent market environment, Ambac Financial Group Inc (NYSE:AMBC). stock has reached a 52-week low, dipping to $7.75. According to InvestingPro data, the stock’s technical indicators suggest oversold conditions, with analysts setting price targets between $15 and $19. This latest price level reflects a significant downturn for the company over the past year, with Ambac’s stock experiencing a substantial 1-year change, plummeting by -51.75%. Investors are closely monitoring the stock as it navigates through the financial headwinds that have led to this year-long decline. The company’s overall financial health score is rated as "FAIR" by InvestingPro, which currently indicates the stock may be undervalued based on its Fair Value analysis. The company, known for its involvement in financial services and insurance, has faced a series of challenges that have pressured its stock price, culminating in the current low. With a market capitalization of $363 million and revenue growth of 90.76% in the last twelve months, stakeholders are now looking for signs of stabilization or strategic moves that may influence the stock’s trajectory in the coming months. Discover more detailed insights and 8 additional ProTips for AMBC in the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Ambac Financial Group reported a significant net loss for the fourth quarter of 2024, with earnings per share (EPS) of -$0.12, missing the analyst forecast of $0.00. The company’s revenue also fell short of expectations, coming in at $18.93 million compared to the anticipated $24.83 million. Despite this, Ambac’s consolidated Property and Casualty (P&C) business showed resilience, generating nearly $900 million in premiums, marking a 74% increase from the previous year. Total (EPA:TTEF) revenues for the company rose by 93% to $99 million compared to 2023. In a strategic move, Ambac successfully sold its legacy financial guarantee business to Oaktree for $420 million, which is expected to accelerate the scaling of its Specialty P&C business. The company also highlighted its focus on growth in the Managing General Agent (MGA) platform, supported by a strong market environment. Analysts from Repertoire Partners noted some challenges in the employer stop-loss and short-term medical segments, but Ambac expressed optimism about market stabilization. The company remains committed to achieving $80-90 million in adjusted EBITDA to common shareholders by 2028.

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