While shades of Silicon Valley Bank roamed over New York Community Bancorp’s (NYSE:NYCB) recent troubles, this bank stock wasn’t about to go quietly. In fact, New York Community has been putting up a fight ever since word of its troubles first emerged, and now, it’s up over 2% in Monday afternoon’s trading thanks to a few key buys.
Reports note that several major insiders have come back in, including Julie Signorille-Browne, who picked up 2,000 shares. Meanwhile, Reginald Davis, president of banking, added $4,920 worth of shares. That was after the CEO bought in a while back, and director Peter Schoels picked up a hefty 100,000 shares. Those figures are just for starters, as several other directors and insiders stepped in to buy more shares of their own bank.
Buying in on a Sinking Ship?
While certainly, this spate of top names picking up shares should be encouraging, it’s easy to wonder if they’re all just whistling past the graveyard. After all, one of the major underlying problems for New York Community is commercial real estate. A lot of regional banks are heavily tied into this market, and with remote/hybrid work schemes catching on, that’s going to make commercial real estate a lot less valuable.
Is NYCB Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on NYCB stock based on one Buy, 12 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 46.22% loss in its share price over the past year, the average NYCB price target of $6.42 per share implies 29.7% upside potential.
