New York Community Bancorp (NYSE:NYCB) Shares Up 32.5% on Better-Than-Expected Earnings

Shares of New York Community Bancorp, Inc. (NYSE:NYCB) traded up 32.5% on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $3.63 and last traded at $3.51. 59,897,947 shares changed hands during trading, an increase of 76% from the average session volume of 34,104,777 shares. The stock had previously closed at $2.65.

The financial services provider reported ($0.25) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.26) by $0.01. The firm had revenue of $633.00 million during the quarter, compared to the consensus estimate of $776.81 million. New York Community Bancorp had a return on equity of 2.78% and a net margin of 0.62%. The business’s revenue for the quarter was down 76.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.23 EPS.

New York Community Bancorp Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 17th. Investors of record on Friday, June 7th will be issued a dividend of $0.01 per share. The ex-dividend date is Friday, June 7th. This represents a $0.04 dividend on an annualized basis and a yield of 1.13%. New York Community Bancorp’s dividend payout ratio (DPR) is presently 2,000.00%.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on NYCB shares. Deutsche Bank Aktiengesellschaft lowered shares of New York Community Bancorp from a “buy” rating to a “hold” rating and decreased their price target for the stock from $15.00 to $7.00 in a research note on Friday, February 2nd. Citigroup lowered their target price on New York Community Bancorp from $5.00 to $3.50 and set a “neutral” rating on the stock in a research note on Thursday, March 7th. Wedbush upgraded New York Community Bancorp from an “underperform” rating to a “neutral” rating and increased their price target for the stock from $3.00 to $3.50 in a research note on Wednesday. Piper Sandler upgraded New York Community Bancorp from a “neutral” rating to an “overweight” rating and set a $4.00 price objective on the stock in a research note on Wednesday. Finally, UBS Group lowered shares of New York Community Bancorp from a “buy” rating to a “neutral” rating in a research report on Monday, January 8th. Two analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and one has assigned a buy rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $5.39.

Insider Activity

In other New York Community Bancorp news, Director Marshall Lux bought 27,100 shares of the firm’s stock in a transaction on Thursday, March 21st. The shares were acquired at an average cost of $3.69 per share, for a total transaction of $99,999.00. Following the purchase, the director now directly owns 64,872 shares of the company’s stock, valued at $239,377.68. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. In related news, Chairman Alessandro Dinello purchased 50,000 shares of the firm’s stock in a transaction dated Friday, February 9th. The shares were purchased at an average price of $4.19 per share, with a total value of $209,500.00. Following the acquisition, the chairman now directly owns 114,305 shares of the company’s stock, valued at $478,937.95. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Marshall Lux acquired 27,100 shares of the company’s stock in a transaction dated Thursday, March 21st. The shares were bought at an average cost of $3.69 per share, with a total value of $99,999.00. Following the completion of the acquisition, the director now directly owns 64,872 shares in the company, valued at approximately $239,377.68. The disclosure for this purchase can be found here. Insiders bought 213,410 shares of company stock worth $875,626 in the last three months. Corporate insiders own 1.62% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in NYCB. Norges Bank bought a new position in New York Community Bancorp during the fourth quarter valued at approximately $77,628,000. Wellington Management Group LLP grew its holdings in shares of New York Community Bancorp by 7.5% during the 3rd quarter. Wellington Management Group LLP now owns 67,668,954 shares of the financial services provider’s stock valued at $767,366,000 after purchasing an additional 4,723,876 shares during the last quarter. Westfield Capital Management Co. LP raised its position in New York Community Bancorp by 154.0% in the 3rd quarter. Westfield Capital Management Co. LP now owns 5,135,955 shares of the financial services provider’s stock worth $58,242,000 after purchasing an additional 3,114,070 shares during the period. Goldman Sachs Group Inc. lifted its stake in New York Community Bancorp by 353.5% in the fourth quarter. Goldman Sachs Group Inc. now owns 2,830,195 shares of the financial services provider’s stock worth $28,953,000 after purchasing an additional 2,206,140 shares during the last quarter. Finally, Rafferty Asset Management LLC lifted its stake in New York Community Bancorp by 187.4% in the fourth quarter. Rafferty Asset Management LLC now owns 2,466,622 shares of the financial services provider’s stock worth $25,234,000 after purchasing an additional 1,608,267 shares during the last quarter. Institutional investors own 67.88% of the company’s stock.

New York Community Bancorp Trading Up 4.7 %

The firm has a market capitalization of $2.82 billion, a PE ratio of 353.00 and a beta of 0.95. The firm’s 50-day simple moving average is $3.36 and its 200-day simple moving average is $7.02. The company has a quick ratio of 1.17, a current ratio of 1.18 and a debt-to-equity ratio of 2.70.

New York Community Bancorp Company Profile

New York Community Bancorp, Inc operates as the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company's deposit products include interest-bearing checking and money market, savings, non-interest-bearing, and retirement accounts, as well as certificates of deposit.