New York Community Bancorp (NYSE: NYCB) saw its shares plummet for the fourth time in five days, extending a recent downturn triggered by an unexpected quarterly loss announcement and a significant dividend cut.
NYCB stock plummeted by 23% on Tuesday, hitting its lowest point since June 2000. Since its earnings announcement on January 31, the stock has declined over 50%, wiping out around $4 billion in market capitalization.
Investor confidence has taken a severe hit recently, with a flurry of analyst downgrades exacerbating the situation. Moody’s Investors Service has further compounded the lender’s woes by initiating a review for a possible credit rating downgrade.
The recent plunge has been attributed to a report indicating that the bank encountered pressure from the Office of the Comptroller of the Currency, prompting it to slash its quarterly dividend and augment its loan-loss provision to more than tenfold what analysts had anticipated.
The bank was preparing for more stringent regulation following transactions that elevated its assets beyond $100 billion and potential vulnerabilities in office and multifamily property markets.
NY Community Bancorp (NYSE: NYCB) Stock Price Action
NYCB stock plunged 22.22% to close at $4.20 on Tuesday. The traders had exchanged hands with 146,748,293 (146.74 million) shares compared to the average daily trading volume of 14.16 million.
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