New York Community Bancorp. rallied 17% at the closing bell on Friday after insiders at the company bought stock after a brutal couple of weeks for the bank.
With no major credit ratings actions or further updates from the company, New York Community Bancorp’s stock rose 71 cents to end Friday trading at $4.90 a share.
At the current price, the stock hasn’t traded consistently at this level since 1997.
Seven executives and directors of the company bought a combined $865,170 worth of stock at prices ranging from $4.05 a share to $4.41 a share, according to Friday filings.
Among them, Executive Chairman Chairman Alessandro DiNello paid $209,480 for 50,000 shares of New York Community Bancorp at an average price of $4.19 each.
Chief Executive Thomas R. Cangemi bought $50,000 in stock, Director Peter Schoels bought $414,750 and Senior Vice President Lee M. Smith purchased $101,250 in stock.
President of Banking Reginald E. Davis bought $4,920 in stock, Director Jennifer R. Whip bought $21,000 and Director David L. Treadwell bought $63,000 in stock.
Prior to trading on Friday, the stock had lost about 60% of its value since announcing a surprise loss on Jan. 31 and then following up with a statement on its ‘ample’ liquidity and a new executive chairman on Wednesday.
New York Community Bancorp also sustained a slew of ratings cuts from analysts including a Moody’s debt downgrade to junk.
Earlier in the day on Friday, the stock traded at $4.10 a share, down about 2%.
Any close below $4.19 would be a new 52-week low, although the stock hit an intra-day low of $3.60 a share on Wednesday.
Before its swoon in recent days, New York Community Bancorp’s stock had not closed at $4.10 a share since April 30, 1997. Since 2000, the stock has largely stayed above $8 per share, except for brief dips in 2009 and 2020, amid two crises that affected the U.S. stock markets.
Since Jan. 30 — the day before its fourth-quarter loss disclosure — New York Community Bancorp.’s stock has lost 60.2% of its value, while the SPDR S&P Regional Banking
KRE
has fallen 11.1% and the S&P 500 is up 1.6%.
Also read: New York Community Bancorp looks to sell rent-regulated commercial real estate after surprise quarterly loss
Also read: Regional-bank bondholders seem unworried by New York Community Bank’s problems
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