NYCB, ROK: What's Behind the Drop in Stock Prices? - TipRanks.com

Shares of New York Community Bancorp (NYSE:NYCB) and Rockwell Automation (NYSE:ROK) dropped 37.7% and 17.6%, respectively, on Wednesday, January 31. NYCB’s underperformance on the bottom line front, coupled with a dividend cut, weighed on its stock price. At the same time, lower-than-expected Q1 performance and supply chain headwinds dragged ROK stock lower. 

New York Community Bancorp owns Flagstar Bank, one of the leading regional banks in the U.S. Meanwhile, Rockwell is an automation and digital transformation company. 

NYCB Disappointed Investors 

NYCB stock lost significant value as its Q4 performance and decision to slash its dividend disappointed investors. It reported a loss of $0.36 per share in Q4 compared to analysts’ expectations of an EPS of $0.27. The management believes that weak earnings were due to higher provisions for credit losses.

Further, the company lowered its quarterly dividend to $0.05 per share from $0.17 to strengthen its capital positioning and balance sheet.

Here’s How Analysts Reacted to NYCB’s Q4 Financials

Raymond James analyst Steve Moss downgraded New York Community Bancorp to Hold from Buy. The analyst cites the need for more visibility around capital and future business plans for the downgrade. On the other hand, Citi analyst Benjamin Gerlinger sees the decline in the share price as “misplaced.” Gerlinger maintained a Hold rating on the stock.

Overall, one analyst downgraded NYCB stock after the release of Q4 financials. Two analysts reiterated a Hold, two maintained a Buy, and one analyst retained a Sell rating.

Is NYCB Stock a Good Buy?

While NYCB stock has lost substantial value, analysts are cautiously optimistic about its prospects. With six Buy, five Hold, and one Sell recommendations, NYCB stock has a Moderate Buy consensus rating. 

Analysts’ average price target of $11.40 implies 76.2% upside potential from current levels. 

Rockwell’s Top and Bottom Lines Miss Estimates

Rockwell’s Q1 top and bottom lines fell short of analysts’ expectations. High levels of channel inventory and ongoing supply chain constraints remained concerns. The company’s sales of $2.05 billion missed analysts’ estimate of $2.1 billion. Moreover, its EPS of $2.04 was well below the Street’s forecast of $2.64. 

Two analysts reiterated a Buy after the release of its Q1 results. Two analysts maintained a Hold, while one analyst retained the Sell recommendation. 

Is Rockwell a Buy?

Wall Street remained sidelined on Rockwell stock. It has five Buy, six Hold, and four Sell recommendations, translating into a Hold consensus rating. Analysts’ average price target of $302.86 implies 19.58% upside potential. 

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