NewtekOne (NASDAQ:NEWT) Releases Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• NewtekOne reported earnings of $0.52 EPS, surpassing expectations of $0.50 by $0.02, with a return on equity of 18.81% and a net margin of 14.34%.
• The company declared a quarterly dividend of $0.19, equating to a 6.43% yield, and its dividend payout ratio stands at 39.58%.
• Analysts at Keefe, Bruyette & Woods reduced their price target for NewtekOne from $13.00 to $12.00, maintaining a "market perform" rating.

NewtekOne (NASDAQ:NEWT - Get Free Report) announced its quarterly earnings results on Monday. The business services provider reported $0.52 earnings per share for the quarter, topping analysts' consensus estimates of $0.50 by $0.02, Zacks reports. NewtekOne had a net margin of 14.65% and a return on equity of 19.48%. The company had revenue of $70.20 million for the quarter, compared to analysts' expectations of $73.88 million. NewtekOne updated its FY 2025 guidance to 2.100-2.500 EPS.

NewtekOne Stock Down 2.3%

Shares of NASDAQ NEWT traded down $0.27 during midday trading on Friday, reaching $11.18. The company's stock had a trading volume of 49,030 shares, compared to its average volume of 224,280. The stock has a 50 day simple moving average of $11.19 and a 200-day simple moving average of $11.58. The company has a current ratio of 0.72, a quick ratio of 0.72 and a debt-to-equity ratio of 6.16. The stock has a market capitalization of $294.37 million, a price-to-earnings ratio of 5.55 and a beta of 1.21. NewtekOne has a fifty-two week low of $9.12 and a fifty-two week high of $15.49.

NewtekOne Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, July 21st. Stockholders of record on Wednesday, July 9th were paid a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a dividend yield of 6.8%. The ex-dividend date of this dividend was Wednesday, July 9th. NewtekOne's dividend payout ratio (DPR) is currently 37.81%.

Insider Activity at NewtekOne

In other NewtekOne news, CEO Barry Sloane bought 10,000 shares of the firm's stock in a transaction that occurred on Thursday, May 29th. The stock was acquired at an average price of $10.86 per share, with a total value of $108,600.00. Following the completion of the transaction, the chief executive officer owned 1,200,459 shares in the company, valued at approximately $13,036,984.74. This trade represents a 0.84% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders have acquired a total of 36,500 shares of company stock valued at $406,175 over the last 90 days. Insiders own 6.50% of the company's stock.

Institutional Investors Weigh In On NewtekOne

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Jane Street Group LLC grew its holdings in shares of NewtekOne by 24.7% in the 1st quarter. Jane Street Group LLC now owns 36,676 shares of the business services provider's stock valued at $439,000 after acquiring an additional 7,274 shares in the last quarter. AQR Capital Management LLC boosted its position in NewtekOne by 306.4% during the first quarter. AQR Capital Management LLC now owns 168,269 shares of the business services provider's stock valued at $2,012,000 after purchasing an additional 126,865 shares during the last quarter. Finally, Royal Bank of Canada grew its stake in NewtekOne by 33.4% in the first quarter. Royal Bank of Canada now owns 23,639 shares of the business services provider's stock valued at $282,000 after purchasing an additional 5,916 shares in the last quarter. 38.35% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of research analysts have issued reports on NEWT shares. Piper Sandler boosted their target price on NewtekOne from $11.50 to $12.00 and gave the company a "neutral" rating in a research note on Tuesday. Keefe, Bruyette & Woods cut their price target on shares of NewtekOne from $13.00 to $12.00 and set a "market perform" rating on the stock in a research note on Friday, July 11th.

NewtekOne Company Profile

NewtekOne, Inc operates as the bank holding company for Newtek Bank, National Association that engages in the provision of various business and financial solutions under the Newtek brand name to the small- and medium-sized business market. The company accepts demand, savings, NOW, money market, and time deposits; and provides loans including SBA loans, commercial and industrial loans, and commercial real estate loans.