New York Community Bancorp nyse Nycb Shares Plummet on Dual Downgrade News

New York Community Bancorp (NYSE: NYCB) Shares Plummet on Dual Downgrade News

New York Community Bancorp (NYSE: NYCB) stock plunged over 10% on Monday, extending a recent decline after being downgraded by Fitch and receiving a lowered price target from Citigroup.

Last week, NYCB stock plummeted nearly 45% in just two days. This sudden drop happened because the bank unexpectedly reported a loss for the fourth quarter. The company attributed this setback to the necessity of allocating additional funds to mitigate potential losses in their commercial real estate loan portfolio.

The stock attempted recovery on Friday, but Fitch’s credit rating downgrade for the bank and Citigroup’s target price cut for NYCB shares from $11 to $7 worsened the situation.

Analysts from Citigroup mentioned that there’s a lot of uncertainty surrounding NYCB’s stock right now. They don’t see any immediate improvements and suggest looking elsewhere for better investment opportunities.

On Monday, New York Community Bank confirmed that its Chief Risk Officer, Nick Munson, had parted ways with the firm. The Financial Times announced Munson’s exit a few weeks before the company’s fourth-quarter earnings were due.

The bank stated in an email,

“We can confirm that Nick Munson left the company in early 2024.”

Meanwhile, NYCB decides to play favorites by keeping their dividend for preferred shareholders the same while slashing it by a whopping 70% for common shareholders. Preferred shareholders get to keep their dividends at $15.94 per share, while common shareholders get the short end of the stick.

NY Community Bancorp (NYSE: NYCB) Stock Price Action

NYCB stock tumbled 10.60% to close at $5.40 on Monday. The traders had exchanged hands with 54,985,201 (54.98 million) shares compared to the average daily trading volume of 13.47 million.