Investor Alert

July 8, 2021, 1:37 p.m. EDT

Carver Bancorp’s stock more than triples in volatile trade despite no news released

Tomi Kilgore

Shares of Carver Bancorp Inc. skyrocketed in very volatile trading toward a more than 10-year high, even though the New York-based bank serving African-American communities apparently has not released any news.

The stock (NAS:CARV) rose 236% in afternoon trading, paring an earlier gain of as much as 267%, but on track to close at the highest price since January 2011. Trading volume spiked up to 69.2 million shares, compared with the full-day average over the past 30 days of about 1.1 million shares.

Since Thursday’s opening bell, Carver’s stock has been halted 9 times for volatility, all so far between 9:36 a.m. Eastern and 11:16 a.m.

“As a matter of policy, Carver Bancorp Inc. does not comment on daily fluctuations in its stock price,” a company spokesperson told MarketWatch.

Prior to Thursday’s rally, the stock had run up 63% year to date through Wednesday, while the SPDR S&P Regional Banking exchange-traded fund (PSE:KRE) had rallied 22% and the S&P 500 index (S&P:SPX) had climbed 16%.

The last news released by the company was on June 17, when the bank holding company and Bank of America Corp. announced that they had closed on a senior secured social impact revolving credit facility with BlackRock Inc.’s (NYS:BLK) Alternative Solutions Group. Carver said that marked the first it had participated in a subscription line facility.

The last filing with the Securities and Exchange Commission was the company’s 10-K annual report on June 29.

The latest official exchange reading on short interest showed that bearish bets on Carver’s stock nearly tripled in the latest two week period to a record high of 272,367 shares as of June 15, up from 108,725 shares as of May 28.

That pushed short interest as a percent of the public float of shares up to 60.2% . In comparison, short interest as a percent of float was 9.2% for fellow New York-based regional bank New York Community Bancorp Inc. (NYS:NYCB) , 3.7% for Dime Community Bancshares Inc. (NAS:DCOM) and 2.3% for Signature Bank (NAS:SBNY) .

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