On January 14, 2024, Frank Demaria, an insider at NewtekOne, Inc. (NASDAQ: NEWT), acquired 1,556 shares of the company’s stock. The shares were purchased at an average price of $13.91, totaling approximately $21,643.96. Following this transaction, Demaria’s ownership in NewtekOne increased to 35,220 shares, valued at around $489,910.20, marking a 4.62% increase in his stake.
This acquisition was disclosed in a filing with the Securities and Exchange Commission, which is publicly accessible. Despite the insider purchase, shares of NewtekOne saw a modest decline of 0.3% on the following trading day, closing at $14.55. The volume of shares traded was 105,324, notably lower than the average volume of 331,449.
Company Overview and Financial Health
NewtekOne operates as a business development company, primarily servicing small and medium-sized enterprises in the United States. The company reported a market capitalization of $420.35 million and has a price-to-earnings ratio of 6.53. Its quick ratio and current ratio stand at 0.67, while the debt-to-equity ratio is significantly high at 5.69.
Recent financial performance highlights include a quarterly earnings report released on October 29, 2023. NewtekOne reported $0.67 earnings per share (EPS), surpassing analysts’ expectations of $0.63 by $0.04. However, the company’s revenue of $74.94 million fell short of the anticipated $78.31 million. The net margin was recorded at 15.59%, with a return on equity of 19.93%.
Market Analyst Ratings and Institutional Interest
Market analysts have recently updated their ratings on NewtekOne. Keefe, Bruyette & Woods reiterated a “market perform” rating with a price target increase from $12.00 to $13.00. In another report, Wall Street Zen upgraded the stock from a “sell” to a “hold” rating. As per the latest data from MarketBeat, the stock currently holds a consensus rating of “Hold” with a target price of $14.50.
Institutional investors have been active in adjusting their positions in NewtekOne. Notably, Trust Co. of Vermont acquired a new stake valued at approximately $29,000, while Advisory Services Network LLC purchased shares worth about $46,000. Additionally, CWM LLC significantly increased its holdings by 728.7%, now owning 8,610 shares valued at $97,000. Overall, institutional investors collectively own 38.35% of NewtekOne’s stock.
As NewtekOne continues to navigate the challenges of the business landscape, the recent insider purchase by Frank Demaria may signal confidence in the company’s future prospects. Investors and analysts alike will be closely monitoring developments as NewtekOne strives to enhance its position in the market.
