Gregory L. Zink, a director at NewtekOne, Inc. (NASDAQ:NEWT), recently acquired 1,000 shares of the company's common stock. The purchase, which took place on November 15, was executed at a price of $13.9491 per share, amounting to a total transaction value of $13,949.
Following this acquisition, Zink now holds a total of 33,017 shares in the company. This transaction reflects Zink's continued investment in NewtekOne, a company known for its role in the national commercial banking sector.
In other recent news, Newtek Business (NASDAQ:NEWT) Services Corp has been making headlines with its strong Q3 earnings report and revised future outlook. The company reported a Q3 earnings per share (EPS) of $0.45, exceeding the consensus estimate of $0.43. Newtek also confirmed its EPS guidance for 2024 to be between $1.85 and $2.05, and introduced an EPS guidance for 2025, projecting a range of $2.00 to $2.25.
In response to these developments, Piper Sandler revised its price target for Newtek from $13.00 to $15.00, while maintaining a neutral rating on the stock. The revised price target reflects Piper Sandler's positive view on Newtek's earnings potential and financial projections for the coming years.
In addition to these financial highlights, Newtek is in the process of merging its technology unit, NTS, into Paltalk, with completion expected in Q1 2024. This is part of Newtek's transition into a financial holding company. Despite facing some challenges, such as an increase in the bank's net charge-offs, these recent developments indicate a robust financial position for Newtek.
InvestingPro Insights
Gregory L. Zink's recent purchase of NewtekOne, Inc. (NASDAQ:NEWT) shares aligns with several positive indicators highlighted by InvestingPro. The company's stock, which has seen a significant 11.48% price total return over the past three months, is currently trading at an attractive valuation. With a P/E ratio of 8.43, NewtekOne appears undervalued relative to its near-term earnings growth potential, as pointed out by one of the InvestingPro Tips.
Despite the recent 9.09% drop in stock price over the last week, NewtekOne's fundamentals remain strong. The company boasts a robust revenue growth of 38.64% over the last twelve months, with a healthy gross profit margin of 83.2%. This financial performance supports the InvestingPro Tip that analysts predict the company will be profitable this year.
For income-focused investors, NewtekOne offers an appealing dividend yield of 5.41%, with a track record of maintaining dividend payments for 10 consecutive years. This consistency in shareholder returns, coupled with the company's profitability over the last twelve months, may have influenced Zink's decision to increase his stake.
InvestingPro provides 8 additional tips for NewtekOne, offering a more comprehensive analysis for investors looking to delve deeper into the company's prospects. These insights can be particularly valuable in understanding the context of insider purchases like Zink's recent acquisition.
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