New Chairman, Credit Downgrade Impact Bank Stock

Moody's downgraded all long-term and some short-term rating and assessments from Baa3 to Ba2

Deputy Editor
Feb 7, 2024 at 8:59 AM
facebook X logo linkedin


Shares of New York Community Bancorp, Inc. (NYSE:NYCB) are rebounding from yesterday's 22.2% dip, last seen up 8.1% in premarket trading after a c-suite shakeup. Specifically, per the company's statement, the regional bank promoted Alessandro DiNello from nonexecutive chairman to chairman in order to work with the company's CEO to "improve all aspects of the Bank's operations."

In addition, Moody's last night downgraded all long-term and some short-term rating and assessments to Baa3 from Ba2, saying NYCB faced "multi-faceted financial, risk-management, and governance challenges." Coming into today, 10 analysts rate the security a "hold," with one a "strong sell," and five a "strong buy."

It's worth noting that the security's Schaeffer's Volatility Scorecard (SVS) sits at 96 out of 100, meaning it has exceeded option traders' volatility expectations during the past year -- a boon for options buyers. 

Following a disappointing Jan. 31 fourth-quarter report, New York Community Bancorp suffered a massive bear gap on the charts, followed by a series of losses that yesterday sent it to its lowest level since 2000. A month into 2024, NYCB sports a nearly 60% year-to-date deficit, with pressure looming overhead from all noteworthy short- and long-term moving averages.

It's worth noting that the equity's 14-day relative strength index (RSI) of 11.6 is firmly in "oversold" territory. This low of a reading typically precedes a short-term bounce.  

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI