Barry Sloane, Chairman and CEO of NewtekOne, Inc. (NASDAQ:NEWT), recently increased his stake in the company by purchasing 3,000 shares of common stock. The shares were acquired at a price of $14.75 each, amounting to a total transaction value of $44,250. Following this purchase, Sloane holds a total of 1,161,855 shares directly. This move underscores Sloane's continued confidence in NewtekOne's prospects.
In other recent news, Newtek Business (NASDAQ:NEWT) Services Corp reported robust Q3 results, exceeding the consensus estimate with earnings per share (EPS) of $0.45. The company also confirmed its EPS guidance for 2024 to be between $1.85 and $2.05 and introduced its EPS guidance for 2025, projecting a range of $2.00 to $2.25. In response to these developments, Piper Sandler revised its core EPS estimates for 2024 and 2025 upwards and increased the price target for Newtek to $15.00, while maintaining a Neutral rating on the stock.
NewtekOne's financial health was bolstered by a return on average assets of 2.8% and a net interest margin of 5.29%, outpacing industry counterparts. The company also recorded a 12% growth in deposits and a 17% increase in loans. Additionally, NewtekOne's payment processing segment saw a pre-tax income rise of 32.5% to $5.3 million for the quarter.
The company is in the process of merging its technology unit, NTS, into Paltalk, with completion expected in Q1 2024. However, it should be noted that the bank's net charge-offs increased to 104 basis points from 54 basis points last quarter. Despite this, NewtekOne's strong financials and clear future vision position it well within the dynamic banking sector.
InvestingPro Insights
Barry Sloane's recent purchase of NewtekOne, Inc. (NASDAQ:NEWT) shares aligns with several positive indicators highlighted by InvestingPro. The company's stock has shown strong performance, with a 16.34% price total return over the last three months. This momentum is reflected in an InvestingPro Tip noting NEWT's "Strong return over the last three months."
Additionally, NEWT's financial health appears robust. The company boasts a P/E ratio of 8.78, which an InvestingPro Tip suggests is "low relative to near-term earnings growth." This valuation metric, combined with the company's profitability over the last twelve months, may have influenced Sloane's decision to increase his stake.
Investors might also find NEWT's dividend profile attractive. The company offers a dividend yield of 5.15% and has maintained dividend payments for 10 consecutive years, according to another InvestingPro Tip. This consistent dividend history could be seen as a sign of financial stability and management's commitment to shareholder returns.
For those seeking a more comprehensive analysis, InvestingPro offers 8 additional tips on NEWT, providing deeper insights into the company's financial position and market performance.
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