We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Ambac Financial Group, Inc. (NASDAQ:AMBC).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Ambac Financial Group Insider Transactions Over The Last Year
The President, Claude LeBlanc, made the biggest insider sale in the last 12 months. That single transaction was for US$244k worth of shares at a price of US$20.11 each. So we know that an insider sold shares at around the present share price of US$17.52. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Notably Claude LeBlanc was also the biggest buyer, having purchased US$590k worth of shares.
In the last twelve months insiders purchased 36330 shares for US$590k. On the other hand they divested 53414 shares, for US$1m. Over the last year we saw more insider selling of Ambac Financial Group shares, than buying. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Ambac Financial Group Insiders Bought Stock Recently
At Ambac Financial Group,over the last quarter, we have observed quite a lot more insider buying than insider selling. In fact, six insiders bought US$590k worth of shares. On the other hand, insiders netted US$380k by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Insider Ownership of Ambac Financial Group
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.7% of Ambac Financial Group shares, worth about US$5.7m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Ambac Financial Group Insiders?
It is good to see recent purchasing. On the other hand the transaction history, over the last year, isn't so positive. Neither the level of insider ownership, nor the transactions over the last twelve months inspire us, but we think the recent buying is positive. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Ambac Financial Group.
But note: Ambac Financial Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
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