All articles tagged with #dividend cut
Dow Inc. reduced its quarterly dividend by half to conserve cash amid a prolonged industry downturn and lower earnings, leading to a decline in its stock price and analyst downgrades, despite efforts to control costs and improve future earnings.
Carl Icahn's conglomerate, Icahn Enterprises, is facing financial strain as it grapples with operational issues and declining asset values, leading to a halved dividend and a 38% stock drop this year. The company is attempting to stabilize by selling a valuable scrapyard in Nashville and increasing its stake in CVR Energy, despite recent losses. Icahn's heavy borrowing against his shares adds pressure, but he remains optimistic about future cash flow improvements and potential regulatory relief for CVR Energy.
New York Community Bank's incoming CEO, Joseph Otting, announced a new business plan after the bank received a $1 billion equity infusion from investors, including Steven Mnuchin's Liberty Strategic Capital. The bank disclosed a 7% decline in deposits and a second dividend cut this year, as it aims to stabilize its stock following a surprise quarterly loss and stricter regulatory requirements. Otting, credited with turning around IndyMac, plans to present the new business plan in late April, while investors focus on the bank's exposure to struggling commercial real estate and recent internal control weaknesses.
New York Community Bancorp's stock fell by 0.2% on Monday following a brief rally fueled by insider stock buying, including a 50,000-share purchase by the board's executive chairman. However, the bank's fundamental problems, such as an unexpected net loss and significant net charge-offs, continue to weigh on investor confidence. Additionally, the bank's decision to slash its dividend by 70% and a downgrade by Moody's to "junk" status have further contributed to the stock's decline.
New York Community Bancorp's stock soared after its CEO and other insiders purchased over 200,000 shares following a significant drop in value due to a dividend cut and larger loan-loss provisions. The purchases, totaling about $870,000, signal renewed commitment and confidence in the bank. The company's market value has declined by about $4 billion since the announcement, but the insider buying has provided a positive development for investors. Additionally, call options equivalent to more than 550,000 shares were snapped up shortly after the insider purchases, indicating increased interest in the bank's stock.
Altria Group, a high-yielding dividend stock, reported a decline in net revenue and earnings for the fourth quarter of 2023, but its payout ratio remains at 84%. The company plans to increase its dividend and expects adjusted diluted EPS and dividend growth until 2028. However, investors are skeptical due to the stock's decline and the company's heavy reliance on smokable products, which may pose a risk to its long-term revenue and profitability. While a dividend cut is not imminent, Altria's uncertain future suggests caution for long-term investors.
New York Community Bancorp's stock plunged by 22% to its lowest level since 1997, extending a $4.5 billion market capitalization loss triggered by a surprise quarterly loss and dividend cut. Analysts and Moody's Investors Service have raised concerns about the bank's credit and regulatory pressures following asset-boosting deals. Interest in put options on the stock surged, and regional bank stocks have been affected, with the KBW Regional Banking Index down around 12% year-to-date.
New York Community Bancorp's stock sank for a second day, prompting at least five Wall Street analysts to lower their recommendations and Moody’s Investors Service to review the bank’s credit rating for a downgrade. The company's surprise dividend cut, fourth-quarter loss, and provision build sparked broader concerns over issues facing the commercial real estate market and the exposure that smaller lenders have to the space, leading to a renewed rout in regional banks. The stock tumbled as much as 15% on Thursday, hitting its lowest level since 2000, and regional bank peers also followed the firm lower.
New York Community Bancorp's stock experienced a significant drop, triggering the steepest decline in regional-bank stocks since the collapse of Silicon Valley Bank in March 2023. The bank's troubles began with a surprise loss and dividend cut, leading to a 37% one-day drop. Moody's has placed the bank's ratings on review for a downgrade due to weak earnings and capitalization. Analysts have downgraded the bank's stock and adjusted profit estimates, while the bank expects a drop in loans and an increase in deposits in 2024. The broader financial sector was impacted by the bank's decline, but some investors see the situation as an opportunity to buy larger banks.
Moody's has placed New York Community Bancorp on review for a potential downgrade, which could push the bank into "junk" territory, citing unanticipated losses, weak earnings, declining capitalization, and increased reliance on wholesale funding. The bank's shares slumped after it announced a 70% dividend cut and a significant loss due to credit provisions. The bank's recent acquisitions have pushed its balance sheet above a $100 billion regulatory threshold, subjecting it to stricter capital and liquidity requirements, sparking concerns about the health of similar regional lenders.
New York Community Bancorp's stock plummeted 37% after reporting a surprise loss, increasing reserves, and signaling trouble in the office-space sector with two troubled loans. The bank also announced a more than two-thirds dividend cut to meet regulatory requirements as a larger Category IV bank. The fourth-quarter loss was $260 million, with adjusted earnings per share at 27 cents, missing estimates. The bank's net interest income and revenue also fell short of analyst expectations. The stock's largest one-day percentage drop in history reflects concerns about credit risk and capital building, following the acquisition of Signature Bank and Flagstar Bank.
Icahn Enterprises' stock hit a fresh 52-week low of $17.92 after short seller Hindenburg Research accused the company of overstating values and paying an unaffordable dividend. The stock has fallen 65% this year and lost billions in market capitalization, prompting the company to cut its dividend in half.
Icahn Enterprises (NASDAQ:IEP) saw its shares drop 4% in after-hours trading and 23% in regular trading after disclosing that the Securities & Exchange Commission (SEC) had contacted the company regarding various aspects of its operations. This follows a similar inquiry by the U.S. Attorney's office in May. Icahn Enterprises also announced a 50% reduction in its quarterly distribution, prompting criticism from Hindenburg Research, which had previously issued a short report on the company. The SEC and U.S. Attorney's office have not made any claims or allegations against Icahn Enterprises or its owner, Carl Icahn.
Despite cutting its dividend, PacWest Bancorp's stock rose by 80% on Friday, leading a rally in the regional bank sector. The rally continued on Monday, with PacWest and other regional bank stocks climbing, as investors looked to capitalize on the rebound.
The Dow Jones Industrial Average fell slightly on Monday, while PacWest soared after cutting its dividend. The consumer price index for April is out on Wednesday, and inflation data will be closely watched throughout May. The stock market rally remains under pressure, and exposure should still be limited to 20% to 40%. The best stocks to watch include Nike, Visa, Nvidia, Paccar, Lam Research, and HubSpot. Tesla stock rebounded from its recent lows, while Apple and Microsoft shares continue to perform well.