The California Public Employees Retirement System (CalPERS) has increased its stake in shares of New York Community Bancorp, Inc. (NYSE:NYCB) by 14.6% during the fourth quarter, according to its recent disclosure with the Securities and Exchange Commission. The move comes as no surprise considering the bank’s impressive track record and notable financial products and services to individuals and businesses across the country.
Established in 1993, New York Community Bancorp has evolved into one of the most respected bank holding companies today. Apart from providing multi-family loans on non-luxury rent-regulated buildings that offer below-market rents, it also offers an array of financial products and services to meet customers’ needs effectively.
Knowing CalPERS’ reputation for investing in financially sound companies, this move could be an indication of NYCB’s position as a solid provider of banking services. This is further cemented by NYCB’s market capitalization of $7.45 billion, which saw its shares open at $10.31 on Tuesday.
While NYCB’s 12 month low is at $5.81 and high at $11.02, it currently exhibits an attractive debt-to-equity ratio of 2.08 along with a current ratio of 1.24 and quick ratio of 1.23 – indicating financial stability despite market challenges.
As per its P/E ratio (price-earnings), NYCB has remained relatively low with a score of 2.71; however, its P/E/G ratio (price-earnings-growth) is promisingly steady at 0.79 – indicating growth potential considered by investors when determining a company’s stock price.
Only time will tell how beneficial CalPERS’ investment boost will be for NYCB; however, given CalPERS’ reputation as being among the largest public pension funds globally with over $400 billion in assets under management, it is indeed a significant event for the bank holding company. NYCB’s fifty-day and two-hundred-day moving average prices are $8.91 and $9.11, respectively, as of May 16, 2023.
In conclusion, while other companies in the banking industry increase their bottom line through ruthless lending practices and insatiable greed, NYCB has managed to balance its operations while providing affordable housing opportunities for communities throughout America – making it not only a solid investment choice but also socially responsible corporate citizen.
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New York Community Bancorp Receives Changes in Stock Positions by Hedge Funds and Institutional Investors
New York Community Bancorp, Inc is a financial services provider headquartered in Westbury, NY. The company has recently received changes to its stock positions by hedge funds and institutional investors. Swiss National Bank increased its position in New York Community Bancorp by 48.3% during the fourth quarter and now owns over 1.6 million shares of its stock worth $14,126,000. Similarly, New Mexico Educational Retirement Board increased its position in shares by 45.6% and now owns over 106,900 shares worth $919,000.
First Trust Advisors LP also raised its position in shares of New York Community Bancorp as it purchased an additional 1,135,590 shares during the last quarter worth $41,795,000. Echo Street Capital Management LLC and FourThought Financial Partners LLC also purchased new stakes in New York Community Bancorp at $272,000 and $249,000 respectively.
Several analysts have commented on the company’s stock performance with mixed views. Morgan Stanley lowered their target price from $10.50 to $10.00 and set an “equal weight” rating for the company while DA Davidson raised its shares from a “neutral” rating to a “buy” rating with a target price of $11.50 for the company and UBS Group lifted their target price on shares from $10.00 to $11.50.
Lastly, Wedbush gave an “outperform” rating to New York Community Bancorp stating that it had potential for success in the future market.
The bank holding company specializes in providing multi-family loans on non-luxury rent-regulated buildings that feature below-market rents as well as financial products and services for individuals and businesses.
In April 2017 quarterly earnings data release by the firm showed EPS ($0.23) hitting analyst’s consensus estimates of ($0.23) EPS; thus slightly competing with competitor banks such as JP Morgan and Bank of America. The firm’s revenue was $2.65 billion for the quarter, compared to analyst estimates of $623.11 million.
Furthermore, the company recently announced its quarterly dividends which will be paid on May 18th with a dividend payout ratio (DPR) of 17.85%. This represents a $0.68 dividend on an annualized basis with a yield of 6.60%. It is evident that despite mixed reviews by analysts and varied shareholder investments in the firm, New York Community Bancorp continues to provide noteworthy financial services as well as succeed in performance when compared to its competitors in the market.
