Barry Sloane, the Chairman & CEO of NewtekOne, Inc. (NASDAQ:NEWT), a firm operating within the national commercial banks sector, has purchased additional shares of the company's common stock, according to a recent SEC filing. The series of transactions, which took place on September 23, 2024, involved Sloane acquiring a total of 41,134 shares at prices ranging from $11.68 to $11.9195, amounting to an investment of approximately $471,559.
The transactions indicate a vote of confidence from Sloane in the future of NewtekOne, as the CEO expanded his holdings in the company. Following the purchases, Sloane now owns a total of 1,187,457 shares of NewtekOne common stock directly.
While Sloane increased his stake, the filing also disclosed a gift of 40,134 shares to the CAMCO ONE IRREVOCABLE TRUST, for which Sloane is the grantor. The gifted shares are valued at $0, as they represent a bona fide gift, and Sloane has disclaimed beneficial ownership of these shares, stating that he does not have voting or investment control over the securities in the trust.
These transactions provide investors with a glimpse into the insider activity at NewtekOne, offering a perspective on how the top executives are managing their stakes in the company.
In other recent news, NewtekOne, Inc. recently completed a public offering of 8.625% Fixed Rate Senior Notes, raising $75 million. The notes, due in 2029, were underwritten by Morgan Stanley & Co. LLC, Keefe, Bruyette & Woods, Inc., Raymond James & Associates, Inc., and UBS Securities LLC. The company plans to use the proceeds for investment funding, debt repayment, and general corporate purposes. NewtekOne also announced the appointment of Andrew Kaplan as its Chief Strategy Officer, bringing his extensive experience in banking and financial services to the team. In a significant restructuring move, the company divested its subsidiary, Newtek Technology Solutions, Inc., to Paltalk, Inc., a transaction involving a $4 million cash payment and 4 million shares of Paltalk's newly created preferred stock. On the financial front, NewtekOne reported Q2 2024 earnings per share of $0.43, surpassing analysts' expectations, and reaffirmed its full-year earnings per share guidance of $1.85 to $2.05. These are recent developments highlighting NewtekOne's strategic financial maneuvers and commitment to growth.
InvestingPro Insights
Following the recent insider transactions by Barry Sloane, Chairman & CEO of NewtekOne, Inc. (NASDAQ:NEWT), market participants may gain additional insights by considering key metrics and expert analysis available through InvestingPro. NewtekOne's market capitalization stands at $309.75 million, and the company has been trading at a low price-to-earnings (P/E) ratio of 7.14, which suggests a potentially undervalued stock in relation to its near-term earnings growth.
Investors might find it encouraging that NewtekOne has demonstrated strong financial performance with a revenue growth of 54.13% over the last twelve months as of Q2 2024. The company has also maintained a high gross profit margin of 83.07% during the same period, reflecting efficient operations and robust profitability. Furthermore, the firm's commitment to returning value to shareholders is evident through its significant dividend yield of 6.4% and a 10-year track record of consistent dividend payments.
Two InvestingPro Tips to consider for NewtekOne include the high shareholder yield, which is an attractive feature for income-focused investors, and the fact that the company has liquid assets exceeding short-term obligations, indicating a strong liquidity position. For those seeking deeper analysis, InvestingPro offers additional tips, including insights on earnings revisions and profitability predictions for the year.
For a more comprehensive understanding of NewtekOne's financial health and stock valuation, interested parties can explore further on InvestingPro, which lists a total of 8 additional tips for the company at https://www.investing.com/pro/NEWT.
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