Barry Sloane, the Chairman and CEO of NewtekOne, Inc. (NASDAQ:NEWT), has made a significant investment in the company's stock, purchasing shares worth over $80,000. The transactions, which occurred on August 14, 2024, demonstrate Sloane's confidence in the financial services firm.
According to the latest filings, Sloane acquired a total of 6,649 shares of NewtekOne's common stock, with prices ranging from $12.08 to $12.172 per share. These purchases add to his already substantial holdings in the company, signaling a positive outlook on the company's future performance.
Investors often look to insider buying as a sign that company executives believe in the business's prospects. Sloane's role as both Chairman and CEO gives him a unique perspective on NewtekOne's operations and potential, making his stock purchases particularly noteworthy.
With this latest move, Sloane's direct ownership in NewtekOne has increased, reflecting his vested interest in the company's success. As the market processes the significance of these transactions, shareholders and potential investors will be watching closely to see how this vote of confidence translates into NewtekOne's strategic direction and financial results in the coming quarters.
In other recent news, NewtekOne, Inc. has reported notable developments. The company has announced the sale of its subsidiary, Newtek Technology Solutions, Inc., to Paltalk, Inc., a transaction that includes a $4 million cash payment and 4 million shares of Paltalk's newly created preferred stock. This divestiture is part of NewtekOne's transition to a financial holding company, following its acquisition of Newtek Bank. The agreement also grants NewtekOne a seat on Paltalk's board of directors post-sale.
In addition to this, NewtekOne has reported a successful second quarter for 2024 with earnings per share (EPS) of $0.43, surpassing analysts' expectations. The company has also reaffirmed its EPS guidance for the full year, ranging between $1.85 and $2.05. This strong performance was highlighted by the company's CEO, Barry Sloane, who mentioned robust deposit and loan growth, as well as the successful launch of the Newtek Advantage business portal and a recent securitization.
These are among the recent developments for NewtekOne, Inc., a company that continues to demonstrate resilience and strategic foresight in its operations and financial planning.
InvestingPro Insights
Following the news of Chairman and CEO Barry Sloane's recent stock purchase, NewtekOne, Inc. (NASDAQ:NEWT) has caught the attention of investors seeking to understand the company's current financial health and future prospects. According to InvestingPro data, NewtekOne boasts a market capitalization of $312.61 million, with a notably attractive price-to-earnings (P/E) ratio of 7.3. This low P/E ratio, when compared to near-term earnings growth, suggests the stock may be undervalued relative to its earnings potential.
Adding to the company's appeal is its strong revenue growth, which stands at 54.13% for the last twelve months as of Q2 2024, showcasing NewtekOne's ability to significantly increase its sales. Furthermore, the company's gross profit margin during the same period is an impressive 83.07%, indicating efficient management and a strong market position.
InvestingPro Tips highlight that NewtekOne pays a substantial dividend to shareholders, with a current dividend yield of 6.27%. This commitment to returning value to shareholders is further evidenced by the company's track record of maintaining dividend payments for 10 consecutive years. Additionally, NewtekOne's liquid assets exceed its short-term obligations, providing financial stability and flexibility.
For investors intrigued by these insights, there are more InvestingPro Tips available that delve deeper into NewtekOne's financial metrics and performance indicators. With seven additional tips listed on InvestingPro, investors can gain a comprehensive understanding of the company's investment potential by visiting https://www.investing.com/pro/NEWT.
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