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Short sellers targeting regional bank stocks up $1 billion -Ortex

Published 02/02/2024, 01:32 PM
Updated 02/02/2024, 01:36 PM
© Reuters. A man walks past a closed branch of the New York Community Bank in New York City, U.S., January 31, 2024. REUTERS/Mike Segar/File Photo

NEW YORK (Reuters) - Short sellers targeting shares of a group of U.S. regional banks, including New York Community Bancorp (NYSE:NYCB), were up about $1.04 billion in paper profits over the last two sessions, according to data and analytics company Ortex.

New York Community Bancorp (NASDAQ:CTBI), down about 40% since Tuesday's close of trading after announcing a surprise loss and a 70% divided cut, accounted for about $122 million of those gains.

Short sellers aim to profit by selling borrowed shares and buying them back later at a lower price.

© Reuters. A man walks past a closed branch of the New York Community Bank in New York City, U.S., January 31, 2024. REUTERS/Mike Segar/File Photo

About 3.6% of New York Community Bancorp's free float is sold short, according to Ortex data, little changed over the last two days and slightly below the 3-month average of 4.18%.

During last year's regional banking crisis short sellers targeted shares of banks including First Republic Bank (OTC:FRCB), Silicon Valley Bank and Signature Bank (OTC:SBNY), possibly exacerbating share price declines.

Latest comments

clearly you know nothing about market makers selling against the box. Do you know how easy it is to just short their entire inventory?
Short-selling should be outlawed. Talk about adding no value to society.
You have that correct!!
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