Keefe, Bruyette & Woods Reiterates "Market Perform" Rating for NewtekOne (NASDAQ:NEWT)

Key Points

• Keefe, Bruyette & Woods has reaffirmed NewtekOne's "market perform" rating, raising its target price from $12.00 to $13.00, suggesting a potential upside of 5.86% from the previous close.
• NewtekOne's stock saw a 2.0% decrease, trading at $12.28, with a market cap of approximately $323.21 million and a P/E ratio of 6.10.
• The company reported earnings per share of $0.52 for the last quarter, exceeding estimates, but revenue fell short of expectations with $70.20 million reported against the forecast of $73.88 million.

Keefe, Bruyette & Woods restated their market perform rating on shares of NewtekOne (NASDAQ:NEWT - Free Report) in a research note published on Friday morning,Benzinga reports. They currently have a $13.00 price objective on the business services provider's stock, up from their previous price objective of $12.00.

Several other research analysts also recently weighed in on the stock. Piper Sandler upped their price target on shares of NewtekOne from $11.50 to $12.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 29th. B. Riley assumed coverage on shares of NewtekOne in a research note on Monday, September 15th. They set a "buy" rating and a $18.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $14.25.

NewtekOne Trading Down 1.8%

NASDAQ:NEWT traded down $0.23 during midday trading on Friday, hitting $12.30. The stock had a trading volume of 378,208 shares, compared to its average volume of 190,767. NewtekOne has a one year low of $9.12 and a one year high of $15.49. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 5.95. The stock has a 50-day moving average of $11.85 and a 200 day moving average of $11.34. The company has a market capitalization of $323.74 million, a price-to-earnings ratio of 6.12 and a beta of 1.25.

NewtekOne (NASDAQ:NEWT - Get Free Report) last issued its earnings results on Monday, July 28th. The business services provider reported $0.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.02. The company had revenue of $70.20 million for the quarter, compared to analysts' expectations of $73.88 million. NewtekOne had a net margin of 14.65% and a return on equity of 19.16%. NewtekOne has set its FY 2025 guidance at 2.100-2.500 EPS. As a group, sell-side analysts forecast that NewtekOne will post 1.93 EPS for the current year.

NewtekOne Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, July 21st. Investors of record on Wednesday, July 9th were paid a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a dividend yield of 6.2%. The ex-dividend date of this dividend was Wednesday, July 9th. NewtekOne's dividend payout ratio (DPR) is presently 37.81%.

Institutional Investors Weigh In On NewtekOne

Several hedge funds and other institutional investors have recently made changes to their positions in NEWT. Man Group plc lifted its position in NewtekOne by 6.1% in the 2nd quarter. Man Group plc now owns 40,138 shares of the business services provider's stock valued at $453,000 after acquiring an additional 2,304 shares in the last quarter. Bank of America Corp DE increased its stake in NewtekOne by 20.0% in the second quarter. Bank of America Corp DE now owns 135,578 shares of the business services provider's stock valued at $1,529,000 after acquiring an additional 22,613 shares during the last quarter. Ameriprise Financial Inc. grew its position in NewtekOne by 73.0% in the second quarter. Ameriprise Financial Inc. now owns 143,607 shares of the business services provider's stock valued at $1,620,000 after acquiring an additional 60,593 shares during the last quarter. AQR Capital Management LLC grew its holdings in shares of NewtekOne by 111.5% during the 2nd quarter. AQR Capital Management LLC now owns 355,847 shares of the business services provider's stock valued at $4,014,000 after purchasing an additional 187,578 shares during the last quarter. Finally, Raymond James Financial Inc. grew its holdings in shares of NewtekOne by 20.2% during the second quarter. Raymond James Financial Inc. now owns 45,620 shares of the business services provider's stock worth $515,000 after purchasing an additional 7,674 shares during the last quarter. 38.35% of the stock is owned by institutional investors and hedge funds.

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.