Astoria’s Stock Down 3% After Offering

The stock market pulled back on Friday, ending 10 days of gains for the Dow Jones Industrial Average, and the turn was felt in the Mortgage Industry Equity Composite, as 10 of the 17 stocks in this index closed lower than they did on Thursday.

The stock with the biggest percentage loss was Astoria Financial, which last week priced a $135 million preferred stock offering at $25 per share. Before the markets opened on Friday, Fitch Ratings put out a release saying it rated the offering at “B” because “deteriorating asset quality metrics, aggressive capital management or excessive loan growth in the multifamily business could lead to negative ratings pressure.

“Conversely, positive rating action is unlikely in the near term given Astoria’s funding profile, profitability and concentrations.” Astoria closed down 3.33% on Friday.

The other stocks with large percentage losses were Radian, down 3.28%, and Redwood Trust, down 1.14%.

At the other end of the spectrum is Bank of America Corp., up 3.8%, followed by Ellie Mae, up 1.96%, and OceanFirst Financial, up 1.32%.

Article source: http://www.nationalmortgagenews.com/dailybriefing/astoria-stock-down-after-offering-1035141-1.html

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