© Reuters. A man walks past a closed branch of the New York Community Bank in New York City, U.S., January 31, 2024. REUTERS/Mike Segar/File Photo
NEW YORK (Reuters) – Short sellers targeting shares of a group of U.S. regional banks, including New York Community Bancorp (NYSE:), were up about $1.04 billion in paper profits over the last two sessions, according to data and analytics company Ortex.
New York Community Bancorp (NASDAQ:), down about 40% since Tuesday’s close of trading after announcing a surprise loss and a 70% divided cut, accounted for about $122 million of those gains.
Short sellers aim to profit by selling borrowed shares and buying them back later at a lower price.
About 3.6% of New York Community Bancorp’s free float is sold short, according to Ortex data, little changed over the last two days and slightly below the 3-month average of 4.18%.
During last year’s regional banking crisis short sellers targeted shares of banks including First Republic Bank (OTC:), Silicon Valley Bank and Signature Bank (OTC:), possibly exacerbating share price declines.