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DHI

Financial Sector Update for 06/23/2017: GPMT,TWO,FOR,DHI,HOT,LADR

Top Financial Stocks

JPM 0.00%

BAC -0.52%

WFC +0.02%

C -0.19%

USB -1.03%

Financial stocks were mixed in afternoon trade, with the NYSE Financial Sector Index rising slightly less than 0.1% while financial companies in the S&P 500 Index were declined almost 0.3%.

In company news, Granite Point Mortgage Trust ( GPMT ) opened Friday at $18.25 a share and soon dropped to a first-day low of $18.11 a share, or slightly more 7% under its initial public offering price of $19.50 a share.

The $19.50-a-share IPO price was below the company's expected $20 to $21 per share pricing range and generated $195 million in gross proceeds from the sale of 10 million shares. Underwriters also received options to buy up to 1.5 million more shares to cover possible over-allotments.

The freshly minted real estate investment trust was created to continue and expand the commercial real estate lending business of Two Harbors Investment ( TWO ), a hybrid mortgage REIT that today contributed its $651 million equity stake in TH Commercial Holdings to Granite Point Mortgage.

In addition to around $1.8 billion in commercial real estate properties, the equity interest also included about $1.2 billion in related debt plus another $100 million in working capital, according to the final prospectus.

In other sector news,

(+) FOR, (+7.3%) Terminates prior merger agreement with Starwood Capital Group after board votes to accept an improved offer from DR Horton ( DHI ) to acquire 75% of Forestar's shares for $17.75 apiece - up from its prior offer of $16.25 a share.

(-) LADR, (-2.5%) Promotes co-founder and chief operating officer Pamela McCormack to company president, taking over for the retiring Michael Mazzei, who will be joining the company's board of directors.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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