Flagstar Hits New 52-Week Low as Q3 Miss Comes With 2028 Target Push
FLG is trading near its 52-week low of $10.295 (0.5% above the low) on elevated volume (2.6× avg).
Summary
Flagstar's Q3 adjusted profit was 1 cent a share against an 8 cent consensus, and the stock slid to a new 52-week low around $10.40, under the prior low of $10.57. Revenue was the bright spot at $530 million versus a $487.8 million forecast, and net interest margin widened 4 basis points to 2.17% as loans grew $958 million to $61.9 billion. The bigger problem is credit: provisions jumped $58 million, substandard loans rose $248 million and criticized and classified loans climbed $670 million, driven by higher rates and New York City rent regulation hitting multi-family loans. CEO Joseph Otting pushed the bank's long-term targets out to 2028 from 2027, with 2028 adjusted EPS of $1.60-$1.70 and a 2.85%-2.95% net interest margin. Net income of $12 million fell from $34 million in Q2, though it beat last year's $36 million loss, and the $250 million buyback was completed in early October.
At the time of this announcement, FLG was trading at $10.35 on NYSE in the Finance sector, with a market capitalization of approximately $4.3B. The 52-week trading range was $10.30 to $15.44. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.