New York Community Bancorp, Inc. (NYSE:NYCB) Down Graded To A Hold


Dallas, Texas 10/18/2013 (Financialstrend) – New York Community Bancorp, Inc. (NYSE:NYCB) stock attracted a downward rating from Standpoint Research on October 13. The rating agency has moved the company stock rating from Buy to Hold. With this latest rating alert, Standpoint has reversed its March’13 decision when it had recommended an upgrade by moving the stock to buy from previous Hold. In spite of the downgrade investors have continued to show confidence in the stock. Over the last one week that stock value has gone up by 1.73% and by over 8.3% in the last 90 days.

Its difficult to put one’s figure on the reason why the stock got downgraded. At cursory evaluation the banking stock has provided appreciable gains to its share holders. Investors who had bought the stock 6 months back have seen their stock holdings appreciate by 22%. The stock has also earned its share holders a not insignificant $1 dividend payout over the trailing 12 months period. This translates to a annual dividend yield of 6.29% which is substantial when compared to returns posted by other banking stock of New York Community size.

In terms of business operations, the bank has managed to post annual sales of $1.74 billion out of which it has managed to retain net income of $488.9 million over a trailing twelve month period. The weakness in the financial results is the quarter on quarter decrease in sales in 2Q. Sales had dropped by 4% while earnings per share had also gone down by 6.7% in the same period. To counter the slow sales the banking institution had posted strong operational and profit margins. Its operational margins were up 44% while profit margins were up 28%. Shareholders of the stock would be hoping that the 3Q results announcement scheduled for October 28 will provide more accurate guidance on the prospects of the bank.