In a recent transaction on July 22, 2024, Salvatore Francis Mulia, a director at NewtekOne, Inc. (NASDAQ:NEWT), sold a total of 750 shares of the company's common stock. The sale was executed at a price of $14.33 per share, amounting to a total of $10,747.
The transaction was conducted under a prearranged 10b5-1 trading plan, which allows company insiders to set up a trading plan for selling stocks they own in accordance with the insider trading laws. The plan was adopted by Mulia on June 20, 2023.
Following the sale, Salvatore Francis Mulia still owns 46,241 shares of NewtekOne stock, directly holding onto his investment in the company. The sale made on July 22 reflects a partial divestment from his position in the company, yet he maintains a significant stake.
NewtekOne, Inc., headquartered in Boca Raton, Florida, operates in the national commercial banks sector. The company, formerly known as Newtek Business (NASDAQ:NEWT) Services Corp., has undergone a name change in the past but continues to serve its clients under the NewtekOne brand.
Investors and the market at large often keep a close eye on insider transactions as they can provide insights into an insider's view of the company's value. While this sale represents a relatively small portion of Mulia's total holdings, it is a transaction that stakeholders may consider when evaluating their own investment in NewtekOne.
The details of the transaction are public information, released in compliance with SEC regulations that govern the disclosure of insider trading activities.
In other recent news, NewtekOne reported a strong first quarter in 2024, surpassing its earnings guidance with core earnings of $0.38 per share. The company has also raised its fiscal year 2024 guidance to a range of $1.85 to $2.05 per share and increased its quarterly dividend by 5.5%. NewtekOne's subsidiary, Newtek Bank National Association, saw a 9% deposit growth and 11% loan growth sequentially, with its net interest margin expanding to 4.80%. The company added approximately 6,000 depository accounts and boasted a 20%-30% return on equity in its alternative loan program. These recent developments indicate a positive outlook for NewtekOne, which plans to implement the NetSuite financial reporting platform in the second half of 2024 and forecasts continued dividend payments and strong profitability. However, the company anticipates challenges within the banking sector, including potential charge-offs and higher operational expenses. Despite these challenges, NewtekOne remains optimistic about its future, leveraging artificial intelligence in its Newtek Advantage program and maintaining a diversified loan portfolio.
InvestingPro Insights
Despite the recent insider sale, NewtekOne, Inc. (NASDAQ:NEWT) presents a mix of financial metrics that could be of interest to investors. With a market capitalization of $364.08 million and a price-to-earnings (P/E) ratio standing at 9.71, the company is positioned in the market with a valuation that suggests profitability. The P/E ratio, which has slightly adjusted to 9.87 for the last twelve months as of Q1 2024, indicates that investors are paying less for each dollar of NEWT's earnings compared to the broader market.
On the growth front, NewtekOne has demonstrated significant revenue growth of 76.21% over the last twelve months as of Q1 2024, coupled with a quarterly revenue growth of 25.16% in Q1 2024. These figures suggest a robust upward trajectory in the company's earnings capability. Additionally, the company's gross profit margin stands at an impressive 83.61%, indicating efficient management of its production costs and a strong market position.
An InvestingPro Tip to consider is the company's high shareholder yield, which is a positive sign for those who prioritize income alongside capital gains. Furthermore, NewtekOne has consistently maintained dividend payments for 10 consecutive years, with a current dividend yield of 5.29%, and has seen a dividend growth of 5.56% over the last twelve months as of Q1 2024. These aspects underscore the company's commitment to returning value to shareholders.
For investors looking for more in-depth analysis and additional InvestingPro Tips, there are 6 more tips available on NewtekOne, which can be accessed by visiting InvestingPro. To get the most out of these insights, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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