Investors sold off their shares in Flagstar Bancorp in droves, driving the company's common stock price down by 46% on Thursday. This is in apparent reaction to the company pricing a 110 million share common stock offering at $1 per share.
The stock closed on Wednesday at $2.32; the next day, it opened at $1.55 per share and it closed at $1.24, still higher than the offering price. During the day, it fell as far as $1.21 per share, setting a new 52-week low.
Normal trading volume for Flagstar is under 1 million shares per day. Today, its volume was over 44 million shares traded.
A call to Flagstar for comment has not been returned.
After trading closed on Wednesday, Flagstar reported a loss of $23 million for the third quarter, much improved over the $298 million loss for the same period last year.
