Ambac Financial(AMBC) Plunges 19.76% on Q1 Earnings Miss

Ambac Financial(AMBC) shares plummeted 19.76% today, hitting a record low with an intraday decline of 28.26%.

The strategy of buying AMBC shares after they reached a recent low and holding for 1 week yielded moderate returns over the past 5 years, with a 7.56% annualized gain. However, the maximum drawdown of 12.58% during the same period indicates that while there was some growth, it was not without risk. The recent rise of 2.2% in the stock price reflects short-term volatility, suggesting that holding for a longer period or employing a more sophisticated strategy might be necessary for better returns.

Ambac Financial's stock price has been under significant pressure due to a mix of financial results and profitability challenges. The company's consolidated financial results for the first quarter of 2025 revealed that expenses outpaced revenue growth, leading to a notable decline in profitability. This financial strain has contributed to the recent downturn in the stock's performance.

Ambac's earnings report for the first quarter of 2025 showed an earnings per share (EPS) of -$0.13, which fell short of analyst expectations by $0.06. Despite revenue exceeding estimates, the negative EPS revisions over the past 90 days have had a substantial impact on the stock's performance. This has resulted in a 28.45% drop over the past three months and a 53.53% decrease over the past year.

Since the beginning of the year, Ambac shares have experienced a 34% decline, with a significant decrease of 54% over the past 12 months. The stock has hit a low of $8.35 in recent trading sessions, reflecting the ongoing challenges faced by the company. These factors collectively underscore the volatility and difficulties Ambac Financial is currently navigating, which have significantly impacted its stock price performance.