NewtekOne (NASDAQ:NEWT) Posts Quarterly Earnings Results, Meets Estimates

Key Points

• NewtekOne met earnings expectations, reporting quarterly EPS of $0.47, while revenue of $90.05 million significantly exceeded the $75.00 million consensus estimate. Net margin was 16.15% and return on equity was 19.00%.
• The company declared a quarterly dividend of $0.19, equivalent to $0.76 annually and a 5.1% yield; its payout ratio is 33.48%.
• Analyst sentiment is moderately positive, with an average “Moderate Buy” rating and a $15.00 price target. CEO Barry Sloane also purchased 11,000 shares, while institutional investors own 38.35% of the stock.

NewtekOne (NASDAQ:NEWT - Get Free Report) released its earnings results on Thursday. The business services provider reported $0.47 EPS for the quarter, hitting analysts' consensus estimates of $0.47, FiscalAI reports. The business had revenue of $90.05 million for the quarter, compared to the consensus estimate of $75.00 million. NewtekOne had a net margin of 16.15% and a return on equity of 19.00%.

NewtekOne Stock Performance

NEWT traded down $0.18 on Thursday, hitting $14.95. The company had a trading volume of 208,370 shares, compared to its average volume of 233,412. The company's fifty day moving average price is $14.32 and its 200 day moving average price is $13.28. NewtekOne has a 1-year low of $9.59 and a 1-year high of $15.69. The company has a debt-to-equity ratio of 6.76, a current ratio of 0.64 and a quick ratio of 0.64. The stock has a market cap of $431.92 million, a price-to-earnings ratio of 6.59 and a beta of 1.27.

NewtekOne Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 1st. Investors of record on Wednesday, June 24th were paid a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a dividend yield of 5.1%. The ex-dividend date of this dividend was Wednesday, June 24th. NewtekOne's dividend payout ratio (DPR) is presently 33.48%.

Analysts Set New Price Targets

Several research analysts have recently weighed in on NEWT shares. Keefe, Bruyette & Woods lifted their target price on shares of NewtekOne from $12.00 to $13.00 and gave the stock a "market perform" rating in a research report on Friday, May 1st. Raymond James Financial raised shares of NewtekOne to a "hold" rating in a research note on Wednesday, July 1st. Finally, Weiss Ratings upgraded shares of NewtekOne from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, July 13th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, NewtekOne currently has an average rating of "Moderate Buy" and an average price target of $15.00.

Insider Buying and Selling

In other news, CEO Barry Sloane purchased 11,000 shares of the company's stock in a transaction dated Monday, June 15th. The shares were bought at an average price of $14.21 per share, with a total value of $156,310.00. Following the completion of the transaction, the chief executive officer directly owned 1,176,914 shares in the company, valued at $16,723,947.94. This trade represents a 0.94% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders purchased a total of 19,567 shares of company stock worth $275,026 in the last 90 days. Company insiders own 5.90% of the company's stock.

Institutional Investors Weigh In On NewtekOne

Hedge funds have recently bought and sold shares of the company. Patriot Financial Partners GP II L.P. bought a new position in shares of NewtekOne in the third quarter worth about $26,423,000. Vanguard Group Inc. lifted its holdings in shares of NewtekOne by 1.9% during the third quarter. Vanguard Group Inc. now owns 1,459,051 shares of the business services provider's stock worth $16,706,000 after buying an additional 26,966 shares during the last quarter. Marshall Wace LLP boosted its position in shares of NewtekOne by 42.9% in the second quarter. Marshall Wace LLP now owns 623,540 shares of the business services provider's stock valued at $7,034,000 after acquiring an additional 187,103 shares during the period. Goldman Sachs Group Inc. grew its stake in shares of NewtekOne by 119.3% in the fourth quarter. Goldman Sachs Group Inc. now owns 549,239 shares of the business services provider's stock worth $6,234,000 after acquiring an additional 298,830 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD grew its stake in shares of NewtekOne by 1,987.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 357,106 shares of the business services provider's stock worth $4,054,000 after acquiring an additional 340,000 shares during the last quarter. 38.35% of the stock is currently owned by institutional investors.

NewtekOne Company Profile

NewtekOne, Inc NASDAQ: NEWT is a publicly traded business development company that specializes in providing financial and business services to small and medium‐sized enterprises across the United States. Operating under the trade name The Newtek Small Business Finance, the company offers a diversified array of lending solutions designed to meet the working capital, equipment acquisition and growth needs of its clients.

The company's core lending offerings include Small Business Administration (SBA) 7(a) loans, equipment financing, lines of credit and commercial real estate financing.

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