Newtek Business Services - NEWT Stock Forecast, Price & News

Newtek Business Services Corp. is a business development company specializing in providing financial and business services to the small-and medium-sized business market in the United States. The firm also seeks to invest in early stage businesses. The firm seeks to makes both debt and equity investments. Under debt investments, it focuses on first lien loans, which have terms of 1 to 25 years; second lien loans, which have terms of 5 to 25 years, and unsecured loans, which are provided to meet short-term funding needs and are repaid within 6 to 12 months. It operates through Electronic Payment Processing, Managed Technology Solutions, Small Business Finance, and Capcos segments. The company originates small business administration loans for the purpose of acquiring commercial real estate, machinery, equipment, and inventory, as well as to refinance debt and fund franchises, working capital, and business acquisitions; and offers small business loan servicing and consulting services to the Federal Deposit Insurance Corporation and various other financial institutions, as well as provides management services. Its electronic payment processing services include credit and debit card processing, check approval, ancillary processing equipment and software to merchants, eCommerce, electronic solutions to accept non-cash payments, check conversion, remote deposit capture, ACH processing, and electronic gift and loyalty card programs. The company also provides Website hosting, dedicated server, and cloud hosting services; Web design and development; Internet marketing; data storage and backup and other related services; and ecommerce services, such as payment processing, online shopping cart tools, Website design and Web related services; Accounts Receivable Financing, and The Secure Gateway. In addition, it offers Newtek Advantage, a mobile, real-time operating platform enabling a business to access data on a smartphone, tablet, laptop, or PC for eCommerce, credit/debit transactions, Website statistics, payroll, insurance, and business loans. Further, the company sells personal, commercial, and health/benefits lines of insurance products; and payroll management processing and employee tax filing services. It has strategic alliances with American International Group, CTAA, Navy Federal Credit Union, Credit Union National Association, Pershing, and others to provide agent services to small business clients. The firm seeks to invest in New York and Louisiana area. The firm seeks to invest $0.3 million to $3 million in businesses. It provides small business terms loans ranging from $0.05 million to $10 million. The firm also provides account receivable financing ranging from $0.05 million to $1.5 million. It also provides $0.05 million to $10 million financing to owner occupied real estate businesses whose average net income over the last 2 years must not exceed $2.5 million. Newtek Business Services Corp.,was founded in 1998 and converted to a BDC company in 2014 and is headquartered in Boca Raton, Florida with additional offices in Lake Success, New York, Garden City, New York; Miami, Florida; Milwaukee, Wisconsin; New Orleans, Louisiana; and New York, New York.

Newtek Business Services Stock Performance

NASDAQ:NEWT opened at $20.61 on Wednesday. The company's 50 day moving average is $20.86 and its 200-day moving average is $24.25. Newtek Business Services has a 12-month low of $17.65 and a 12-month high of $32.38. The company has a quick ratio of 2.91, a current ratio of 2.91 and a debt-to-equity ratio of 1.03. The firm has a market cap of $498.49 million, a P/E ratio of 8.11 and a beta of 1.14.

Newtek Business Services (NASDAQ:NEWT - Get Rating) last released its earnings results on Wednesday, August 3rd. The business services provider reported $0.75 earnings per share for the quarter, beating analysts' consensus estimates of $0.61 by $0.14. The company had revenue of $19.23 million for the quarter, compared to analysts' expectations of $20.16 million. Newtek Business Services had a net margin of 109.21% and a return on equity of 16.42%. During the same quarter in the previous year, the company earned $1.20 EPS. Sell-side analysts predict that Newtek Business Services will post 2.6 earnings per share for the current year.

Analyst Ratings Changes

Separately, Raymond James upgraded shares of Newtek Business Services from an "underperform" rating to a "market perform" rating in a research report on Monday.

Insider Transactions at Newtek Business Services

In other news, CEO Barry Sloane purchased 4,200 shares of the business's stock in a transaction that occurred on Wednesday, May 18th. The shares were bought at an average cost of $24.20 per share, for a total transaction of $101,640.00. Following the acquisition, the chief executive officer now owns 988,016 shares of the company's stock, valued at approximately $23,909,987.20. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 5.70% of the stock is currently owned by corporate insiders.