Magazine article American Banker

In Brief: Rough Morning for AmeriCredit Stock

Magazine article American Banker

In Brief: Rough Morning for AmeriCredit Stock

Article excerpt

Shares of AmeriCredit Corp. took a wild ride Monday, sinking more than 10% in morning trading, to $6.60 a share, before recovering ground as the day wore on.

The subprime auto financer's stock hit a 52-week high of $46.93 in April and a low of $6.15 on Oct. 16.

John Hoffmann, a spokesman for the company, said he did not know of any event that could have caused the market swing, but last week AmeriCredit announced plans to lay off 6.5% of its work force, or 350 people. He said that employees at all levels and in all business segments are subject to the job cuts, which are scheduled to be completed this month. The cuts are part of AmeriCredit's move to slow its growth, which has exceeded 40% a year for the past two years.

"It's part of our plan to create a right-sized organization for slower growth," Mr. Hoffman said.

Ten officers or directors added to their stakes last month, buying a combined 786,000 shares. …

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