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May 1, 2017, 1:36 p.m. EDT

Ocwen Financial's stock rockets as New Residential deal includes upfront payment, equity stake

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By Tomi Kilgore

Shares of Ocwen Financial Corp. /zigman2/quotes/209487504/composite OCN +2.85% rocketed 41% in afternoon trade Friday, after the troubled financial services company announced a new proposed deal with New Residential Corp. that includes an upfront payment of $425 million to Ocwen and an equity stake. The stock was the biggest percentage gainer on the New York Stock Exchange. Volume spiked to over 22 million shares, or more than triple the full-day average. Ocwen said the new deal would convert New Residential's existing rights to mortgage service rights (MSRs) to fully-owned MSRs. In addition, New Residential would also make an equity investment in Ocwen and become a 4.9% owner. On April 20, the stock had lost more than half its value after North Carolina ruled the firm couldn't acquire new service rights. Despite Monday's rally, the stock has still tumbled 40% year to date, while the SPDR Financial Select Sector ETF /zigman2/quotes/209660484/composite XLF +1.49% has gained 2.0% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.75% has advanced 6.8%.

/zigman2/quotes/209487504/composite
US : U.S.: NYSE
$ 29.59
+0.82 +2.85%
Volume: 130,052
Oct. 15, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$264.37 million
Rev. per Employee
$190,212
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/zigman2/quotes/209660484/composite
US : U.S.: NYSE Arca
$ 39.51
+0.58 +1.49%
Volume: 58.41M
Oct. 15, 2021 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
4,471.37
+33.11 +0.75%
Volume: 2.05B
Oct. 15, 2021 4:46p
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