Hindenburg Research Shorts Axos Financial, Citing 'Glaring Commercial Real Estate Loan Problems and Lax Underwriting'

Hindenburg Research has taken a short position against Axos Financial AX, a regional bank with a $3.1 billion market cap. The financial research firm, known for its investigative reports, released a detailed analysis alleging significant risks within the company.

Hindenburg's report is based on extensive industry research, interviews with 21 former employees, lease agents, and experts. The firm scrutinized Axos’s loan book and found what it describes as “exposure to the riskiest asset classes” alongside “lax underwriting standards.” According to Hindenburg, these issues raise substantial concerns about the bank’s financial stability and risk management practices.

Here’s Hindenburg’s post on X:

Axos Financial, headquartered in San Diego, California, was incorporated in 1999 and went public in March 2005. The bank has built a reputation for innovation in the digital banking space but is now facing scrutiny over its lending practices.

Hindenburg's short report has already impacted Axos's stock, which is down over 15% in pre-market trading.

Axos Financial has not yet responded to Hindenburg's allegations.

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