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. However, it only increased shares held by 6.2%, and it wasn't a huge purchase by absolute value, either.
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. So it's clear an insider wanted to buy, at around the current price, which is US$12.83. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
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 want to know exactly who sold, for how much, and when, simply click on the graph below!
Ambac Financial Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Ambac Financial Group Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. 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 Do The Ambac Financial Group Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ambac Financial Group. For instance, we've identified 2 warning signs for Ambac Financial Group (1 is significant) you should be aware of.
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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