Hindenburg Research takes short position in Axos Financial (updated)

Axos Financial

04/06/2024 13:35

(Adds details from Hindenburg Research report in paragraphs 2
and 3)
       June 4 (Reuters) - Short seller Hindenburg Research said
on Tuesday it had taken a short position in lender Axos
Financial  AX.N , sending shares of the bank down 18% in
premarket trading.
    Hindenburg alleged that the bank had lax underwriting
standards and a loan book filled with multiple glaring problems.
    The bank is exposed to the riskiest asset classes and unlike
other peers who have backed away from the deteriorating
commercial real estate market, Axos has increased its total
exposure to the sector, Hindenburg said in its report.
    Axos Financial did not immediately respond to a Reuters
request for comment.
    Reuters could not independently verify the claims in the
short seller report.

 (Reporting by Arasu Kannagi Basil in Bengaluru; Editing by
Shinjini Ganguli)
 ((ArasuKannagi.Basil@thomsonreuters.com;))