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New York Community Bancorp (NYSE: NYCB) the stock recorded an increase up by 14.8% in Friday afternoon trading after disclosing that the company’s CEO and other insiders bought more than 200,000 shares of the stock, which has lost about half its value since posting a surprise fourth-quarter loss last week.
CEO Thomas Cangemi purchased about 11,000 shares of NYCB stock on Friday, according to SEC filings. Newly appointed Executive Chairman Alessandro DiNello purchased 50,000 shares of NYCB stock on Friday. Other insiders, including the bank’s board of directors, also bought shares.
On Jan. 31, NYCB said it would cut its dividend and create a much larger-than-expected provision for loan losses, amid concerns about its commercial real estate loans and tougher regulation. The shock dragged regional bank stocks lower, although the sector has since stabilized.
NYCB did not immediately respond to Seeking Alpha’s request for comment on the transactions.