In a recent transaction on May 15, Gregory L. Zink, a director of NewtekOne, Inc. (NASDAQ:NEWT), purchased shares of the company's common stock, signaling his confidence in the financial services firm. The acquisition, which consisted of 1,000 shares, was executed at prices ranging from $14.14 to $14.20 per share, amounting to a total investment of $14,152.
This purchase by Zink adds to his already substantial holding in the company, reflecting a positive stance towards NewtekOne's market position and future prospects. With the latest transaction, the director's ownership in the company has been further solidified, although the exact number of shares owned following the transaction was not disclosed in the filing.
Investors often monitor insider buying as it can be an indicator of an executive's belief in the company's current valuation and future performance. NewtekOne, with its focus on providing financial and business services, continues to attract attention in the commercial banking sector.
As the market processes the implications of this insider activity, shareholders and potential investors will be watching closely to see how this vote of confidence by a company insider aligns with NewtekOne's performance in the coming quarters.
InvestingPro Insights
Following the recent insider purchase by director Gregory L. Zink, NewtekOne, Inc. (NASDAQ:NEWT) demonstrates several noteworthy financial metrics and market indicators. The company's market capitalization stands at a robust $345.28 million, reflecting a significant presence in the financial services sector. Investors may find the company's price-to-earnings (P/E) ratio particularly interesting; at 9.36, it suggests that the stock is trading at a relatively reasonable valuation compared to earnings.
NewtekOne's revenue growth over the last twelve months as of Q1 2024 is an impressive 76.21%, indicating a strong expansion in its business operations. This growth is complemented by a solid gross profit margin of 83.61%, showcasing the company's ability to maintain profitability.
An InvestingPro Tip that may resonate with shareholders is the company's high shareholder yield, which is supported by a dividend yield of 5.45% and a dividend growth of 5.56% over the same period. Moreover, NewtekOne has maintained dividend payments for 10 consecutive years, reinforcing its commitment to returning value to shareholders. On the performance front, the company has seen a significant return over the last week, with a 10.72% price total return, and has also demonstrated strong returns over the last month and three months.
For those interested in further analysis and additional InvestingPro Tips, such as the company's cash burn rate and the RSI suggesting the stock is in overbought territory, visiting the dedicated page on InvestingPro for NewtekOne at https://www.investing.com/pro/NEWT can provide more in-depth insights. There are 10 additional InvestingPro Tips available, offering a comprehensive overview of the company's financial health and market performance. To access these valuable insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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