Shares of E-Trade Financial Corp. fell Monday after the discount brokerage filed for its biggest stakeholder and creditor and others, to sell up to $2.6 billion of the company's stock and bonds, a move one analyst said could pressure the stock.
In a filing with the Securities and Exchange Commission, E-Trade registered to sell up to 94.9 million shares, or $376.6 million, of the company's stock. Citadel Investment Group, the company's biggest stakeholder, bought 84.7 million shares of E-Trade's stock as part of a $2.5 billion investment last year, and has added to its stake since then. E-trade also registered for the security holders to sell more than $2 billion of its bonds.
Other selling security holders include BlackRock and Wingate Capital.
Deutsche Bank analyst Matthew Fischer said the share sales could pressure the company's stock.
E-Trade's shares lost 28 cents, or 6.5 percent, to close at $4.03 Monday.
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