On June 4, 2024, before the market opened, Hindenburg Research issued a report entitled “Axos: Glaring Commercial Real Estate Loan Problems and Lax Underwriting Beneath this Priced-For-Perfection Bank”. In this report, Hindenburg stated that its “research, including industry analysis, interviews with 21 former employees, lease agents and industry experts, combined with an examination of Axos’ loan book derived through local property records, indicates a company exposed to the riskiest asset classes with lax underwriting standards and a loan book filled with multiple glaring problems.”
On this news, Axos Financial’s stock fell $2.21 per share, or 4.2%, to close at $50.25 per share on June 4, 2024.
