President of Ambac Financial Group Claude LeBlanc Buys 4.3% More Shares

Explore Ambac Financial Group's Fair Values from the Community and select yours

Investors who take an interest in Ambac Financial Group, Inc. (NYSE:AMBC) should definitely note that the President, Claude LeBlanc, recently paid US$7.03 per share to buy US$176k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 4.3%.

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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 Independent Director Michael Price bought US$500k worth of shares at a price of US$6.54 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$8.05. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Ambac Financial Group insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Ambac Financial Group

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Insider Ownership Of Ambac Financial Group

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Ambac Financial Group insiders own 4.5% of the company, worth about US$16m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Ambac Financial Group Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Ambac Financial Group we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Ambac Financial Group has 1 warning sign and it would be unwise to ignore this.

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. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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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.