Shares of Ambac Financial (NASDAQ:AMBC) are soaring today after the company’s subsidiary Ambac Assurance Corp (AAC) settled its RMBS litigations with Bank of America (NYSE:BAC).
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Ambac expects to record a $390 million gain in relation to the overall $1.84 billion settlement. Further, it plans to record the gain over the third and fourth quarters.
The President and CEO of the company, Claude LeBlanc, commented, “Ambac is very pleased to have reached this settlement with Bank of America, which materially advances our strategic priority to progress AAC to a stable runoff and further maximizes optionality for our legacy financial guaranty business.”
Is AMBC Stock Going to Go Up?
While analysts are yet to discover Ambac stock, hedge funds remain positive about it. AMBC shares have jumped ~67% over the past six months, and our data indicates hedge funds have been lapping up shares since January.
Further, in the past quarter alone, hedge funds have increased holdings in Ambac by 196,100 shares.
