Ny Community Bancorp nyse Nycb Stock Tumbled As Analysts Sound Alarm over Internal Control Fears

NY Community Bancorp (NYSE: NYCB) Stock Tumbled as Analysts Sound Alarm Over Internal Control Fears

New York Community Bancorp (NYSE: NYCB) stock plummeted 26% on Friday after DA Davidson cut its price target, citing concerns over internal control issues.

DA Davidson has revised down its stock price target for New York Community Bancorp (NYCB) from $5.00 to $4.00, maintaining a Neutral rating on the stock. The move comes in the wake of disclosures made by NYCB, which have sparked concerns regarding the company’s internal controls and recent leadership transitions.

NYCB made two 8K filings following the market close on Friday. The first filing that the company’s management had identified a material weakness in its internal controls. However, the full assessment of these controls is still pending.

The second 8K filing outlined a substantial leadership shift within the company. Former CEO and President Tom Cangemi stepped down from his roles on February 23, though he will remain a board member. Sandro DiNello took the helm as the new president and CEO on February 29, following his earlier appointment as Executive Chairman on February 6.

DA Davidson has observed that NYCB’s stock appears to be trading at a significant divergence from its fundamental value, with a price-to-tangible book value (P/TBV) ratio of 0.36X. Given the heightened risks associated with internal control issues and management transitions, the firm has adjusted its target P/TBV downward to 0.3X from the previous 0.4X.

NY Community Bancorp (NYSE: NYCB) Stock Price Action

NYCB stock plunged 25.89% to close at $3.55 on Friday. The traders had exchanged hands with 123,079,195 (123.07 million) shares compared to the average daily trading volume of 24.62 million.