Why New York Community Bancorp Stock Is Tumbling

New York Community Bancorp, Inc. NYCB shares are trading lower Monday on continued weakness after the company last week announced that it identified material weaknesses in its internal controls and replaced its CEO. Moody's also downgraded New York Community Bancorp's long-term issuer rating to B3.

The Details:

Moody's said the company’s delayed reporting of financials, reported material weaknesses in internal controls and the transitions in leadership and board membership were the primary factors in its downgraded rating.

Moody's highlighted that these new risks are in addition to the company's reported fourth-quarter losses and changes to its functional leadership. Moody's noted heightened ongoing risks to New York Bancorp's creditworthiness during the period it may take the changes to become fully effective.

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Should I Sell My NYCB Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of New York Community NYCB have decreased by 66.26% in the past year. An investor who bought shares of New York Community at the beginning of the year would take a loss of $7.51 per share if they sold it today. The stock has fallen 46.2% over the past month, meaning an investor who bought shares on Feb. 1 would see a capital loss of $3.14.

New York Community shares have an all-time high of $14.11, representing 385.71% upside from current levels.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. New York Community stock currently has an RSI of 22.68, indicating oversold conditions.

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NYCB Price Action: According to Benzinga Pro, New York Bancorp shares are down 20% at $2.84 at the time of publication.

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