NYCB shares surge after top executives disclose stake purchases
By Manya Saini and Niket Nishant
(Reuters) -New York Community Bancorp (NASDAQ:CTBI)'s battered shares surged 15% on Friday after top executives disclosed they had bought shares in the embattled U.S. lender.
NYCB has taken steps to boost investor confidence in recent days after its shares lost around 50% since Jan. 31, when it posted a surprise quarterly loss and slashed its dividend.
Purchases by NYCB executives totaled more than $850,000 combined, regulatory filings published on Friday showed. The filings gave no details beyond the name of the purchaser, the number of shares and their value.
Among the buyers were NYCB's newly-appointed Executive Chairman Alessandro DiNello, who bought 50,000 shares for around $209,480, the filings showed, while Peter Schoels, a director, purchased 100,000 shares for $414,750.
Market participants tend to track the trading activity of executives, as investors believe the insiders could have a clearer view of the company’s outlook.
«I believe insider buying today is a very positive development,» said Christopher Marinac, director of research at Janney Montgomery Scott LLC, adding: «It is exactly what investors have wanted to see.»
DiNello, who was appointed executive chairman earlier this week, said on Wednesday NYCB would take steps to reduce its exposure to the troubled commercial real estate (CRE) sector, including considering the sale of loans in its CRE portfolio.
Michael Ashley Schulman, a partner and chief investment officer at Running Point Capital Advisors, said the purchases could indicate that executives believe NYCB's current share price may not reflect the bank’s actual condition.
«On the other hand, one might say that their… share purchases can be seen as a relatively
Read more on investing.com
