NEW YORK (AP) -- Shares of IndyMac Bancorp Inc. plummeted Tuesday morning after the company stopped accepting some loan submissions and trimmed its work force, and an analyst cut his price target to $0.

The stock fell 31 cents, or 43.5 percent, to 40 cents after hitting an all-time low of 34 cents earlier in the session.

Late Monday, the mortgage lender said it has stopped accepting new loan submissions in its main mortgage lending divisions and plans to slash 3,800 jobs, or more than half of its work force. In addition, the company said its second-quarter loss will be wider than in the first quarter.

In a letter to shareholders, Chief Executive Michael W. Perry said IndyMac is working with U.S. banking regulators, who have determined the company is no longer well capitalized and have asked it to submit a new business plan designed to improve its financial footing.

Friedman, Billings, Ramsey & Co. Paul J. Miller Jr. cut his price target on the Pasadena, Calif., company to $0 from $1. He rates the company "Underperform."

"Given continued home price declines, management's higher loss estimates, recent ratings agency downgrades on the company's mortgage-backed securities and the company's decision to stop new mortgage originations, we do not believe that there is any value left for common shareholders," Miller said in a note to clients.

So far this year, the stock has fallen 88 percent.

A company representative was not immediately available for comment.