In a recent move that has caught the attention of investors, Barry Sloane, the Chairman and CEO of NewtekOne, Inc. (NASDAQ:NEWT), has increased his stake in the company through the purchase of additional shares. According to the latest filings, Sloane acquired 5,000 shares of NewtekOne at a price of $12.539 per share, totaling approximately $62,695.
This transaction, which took place on June 17, 2024, has resulted in Sloane's direct ownership of 1,135,674 shares in the company. The acquisition demonstrates a significant investment by the CEO into the company's stock and could be interpreted as a sign of confidence in the future prospects of NewtekOne.
NewtekOne, Inc., known formally as Newtek Business (NASDAQ:NEWT) Services Corp., is a company operating within the national commercial banks sector, based in Boca Raton, Florida. The company has been a part of the financial landscape, providing a range of services to its clients.
Investors often keep a close eye on purchases and sales of company stock by executives as these transactions can provide insights into the leadership's view of the company's valuation and its future direction. Sloane's recent acquisition is no exception and may lead to investor speculation regarding the company's performance and strategic initiatives moving forward.
The financial details of these transactions are available in the public filings, which provide transparency into the trading activities of company executives and other insiders. As always, investors are encouraged to consider the broader market and company-specific factors when assessing the implications of such insider transactions for their investment strategies.
In other recent news, NewtekOne reported a strong first quarter for 2024, exceeding 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 alternative loan program is showing promise with a 20%-30% return on equity.
The company plans to implement the NetSuite financial reporting platform in the second half of 2024 and aims to enhance the client experience and business solutions. However, it anticipates challenges in the banking sector with low-cost deposits and the ease of digital money transfers.
NewtekOne also discussed its plans to generate $150 million to $300 million in business deposits. Recent developments also include a successful gain on sale strategy with 20 years of consistent income and strong credit and risk management with a diversified loan portfolio. These are part of the company's strategic initiatives aimed at growing the business and maintaining a competitive edge in a challenging banking environment.
InvestingPro Insights
Following the news of Barry Sloane's increased investment in NewtekOne, Inc., current and prospective investors may find the latest data and analysis from InvestingPro particularly illuminating. With a market capitalization of $316.84 million and a robust revenue growth of 76.21% over the last twelve months as of Q1 2024, NewtekOne demonstrates a strong financial performance. This is further underscored by its impressive gross profit margin of 83.61% within the same timeframe.
An InvestingPro Tip worth noting is the company's high shareholder yield, which is a positive signal for those interested in shareholder returns. Moreover, NewtekOne has maintained dividend payments for 10 consecutive years, with a current dividend yield of 6.08%, reflecting a steady commitment to providing income to its shareholders. Additionally, the company's liquid assets surpass its short-term obligations, suggesting a solid financial cushion for operational needs and potential growth investments.
For investors seeking a deeper dive into NewtekOne's performance and potential, InvestingPro offers a range of additional tips. There are currently 6 more InvestingPro Tips available, which can be accessed through the InvestingPro platform. These tips provide valuable insights that could guide investment decisions. To further enhance the value for our readers, use the coupon code PRONEWS24 to receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription.
It's also noteworthy that analysts predict the company will be profitable this year, and the company has been profitable over the last twelve months, which may instill further confidence in the CEO's recent purchase and in the company's future trajectory. With a P/E ratio of 8.26, NewtekOne is positioned as an attractive option for value investors.
Keeping an eye on executive stock purchases like Sloane's, alongside the comprehensive data and analysis from InvestingPro, can provide a richer picture of NewtekOne's investment potential.
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