The company‘s stock fell 31 cents, or 7.85%, to end the session at just $3.64, the lowest point since shares dipped to $3.34 on May 10, 1990, according to Big Charts/Marketwatch data.
The nation’s second largest independent mortgage lender, now valued at just $300.4 million, has seen its share of problems over the past 12 months, including rising delinquencies, tough secondary market conditions, the loss of 24 percent of its workforce, and the announcement of its first annual loss in 2007.
That led CEO Michael Perry to note that “innovative home lending went too far,” blaming his company and others for the mortgage crisis that ensued.
And just last week, he passed on the opportunity to acquire another one million shares of stock, claiming they would better serve as a motivational aid for IndyMac employees.
The question remains how IndyMac is going to navigate the current crisis, given the fact that they’ve only traded one non-agency loan bundle (at a loss) since February and loan production is off more than 60 percent from year-ago levels.
It’s also curious that they’ve been able to avoid a capital infusion or takeover similar to many of their rivals that are in comparable positions.
The Pasadena, CA-based mortgage lender is set to announce first quarter earnings on May 12, with analysts polled by Thomson Financial expecting a loss of 98 cents.