The New York Stock Exchange has warned Flagstar Bancorp Inc. that its stock is in danger of being delisted because it has traded at an average of less than $1 for 30 consecutive days.
The $12.7 billion-asset Flagstar, of Troy, Mich., said Wednesday that while its stock will remain listed on the exchange for now, its symbol would be assigned a special indicator to alert investors that it is no longer in compliance with NYSE listing requirements. If the shares are not trading at average above $1 for 30 straight days by Feb. 18 - six months from the day it received the NYSE warning - then the stock could be removed from the exchange.
Flagstar's shares first dipped below $1 on July 27 after the company reported a wider-than-expected loss of $74.9 million in the second quarter. Its shares plunged 18% that day, to 98 cents, fell another 26% the following day and have not traded above 77 cents since. The shares were trading at 63 cents late Thursday.