Ocwen Financial, Altisource Portfolio Solutions and Altisource Residential could be bouncing back to last week’s levels after a plunge in their stock this week.
In trading earlier Tuesday, Ocwen saw an increase in 3.5% while Altisource Portfolio Solutions increased by 2.2% and Altisource Residential by 1.2% according to an article by Stephen Alpher for Seeking Alpha.
While Tuesday's news is positive for Ocwen, it should be noted that Ocwen's stock has fallen steadily over the last several years. At its peak in 2013, Ocwen traded around $60 per share. Ocwen has not closed above $2 per share since early June.
Earlier this year, Ocwen said that it expected to post a loss in 2016, and the company’s first quarter results backed up that statement, as the company posted a net loss of $111.2 million in the first three months of 2016.
To counteract the expected losses from the business shift, Ocwen said that it was undertaking several cost-cutting efforts throughout 2016.
Included in those cost-cutting efforts is a reduction in the company’s staff, as HousingWire reported earlier this year that Ocwen recently laid off 120 employees from various office locations throughout the U.S.
After that, Ocwen’s stock soared with an increase of 8.941% as of 1:23 p.m. Eastern time on June 3, 2016 after it announced its layoff of 120 employees.
Last week, a computer-generated margin call at Interactive Brokers for a sizable holder of Ocwen (-17.5%), Altisource Portfolio (-16.2%), and Altisource Residential (-11.4%) is apparently behind the tumbles in those names, according to an article by Stephen Alpher for Seeking Alpha.
The report is good news for Ocwen, as it makes an S&P upgrade to average more likely, according to the article by Alpher.
It should be noted that the Dow and S&P are, in general, posting large gains.