Trump Lender Axos Sinks After Hindenburg Shorts Bank’s Stock
- Short seller cites Axos’s CRE exposure, ‘aggressive’ valuation
- Shares of the lender shed 4.2% in wake of the report
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Axos Financial Inc., which has lent to properties including former President Donald Trump’s flagship New York tower, plunged after Hindenburg Research said it was short the stock because of the bank’s exposure to problematic commercial real estate loans.
Shares of the company shed 4.2% Tuesday, paring much of a loss that reached 16% intraday, after Hindenburg, the firm run by Nate Anderson, said the lender’s share price has an “aggressive” valuation compared to its peers. The slump left the stock at a seven-week low.