NYCB Shares Keep Falling As Investors Weigh ‘Significant And Very Expensive’ Financial Strategy
Shares in New York Community Bancorp (NYSE:NYCB) continued to fall heavily on Monday after a brief pick-up last week following the announcement of a $1 billion capital raise.
On Wednesday last week, it was announced that Steven Mnuchin, former Treasury Secretary, along with a number of other outside investors, would invest $1 billion in NYCB, sending shares up by 7.5% on the day.
The announcement’s stimulative impact didn’t last long, once investors realized the price they would be paying for the $1 billion injection. New shares were issued at $2, a deal that was described as “meaningfully dilutive to common shares” by analysts at Wedbush.
Wedbush rated the stock Underperform “based on NYCB’s above average exposure to commercial real estate (CRE) loans.” It set a target price of $3.
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Full story available on Benzinga.com
