In a recent stock transaction, Salvatore Mulia, a director at NewtekOne, Inc. (NASDAQ:NEWT), sold shares in the company. The transaction, which took place on August 21, 2024, involved the sale of 750 shares at a price of $12.5115 per share, amounting to a total value of approximately $9,383.
This sale was conducted under a 10b5-1 trading plan, which was previously adopted by Mulia on June 20, 2023. A 10b5-1 trading plan allows company insiders to set up a predetermined plan to sell company stocks, allowing them to trade on a schedule and avoid accusations of insider trading.
Following the transaction, Salvatore Mulia's remaining holdings in NewtekOne amount to 45,291 shares of common stock. The sale represents a minor adjustment to Mulia's position in the company, and the director continues to hold a significant number of shares following this sale.
Investors often monitor insider transactions as they can provide insights into an insider’s perspective on the value of the company's stock. However, it is important to note that these transactions can be motivated by a variety of personal financial considerations and do not necessarily indicate a change in company fundamentals.
NewtekOne, Inc., headquartered in Boca Raton, Florida, operates in the national commercial banks sector and has undergone changes in its corporate structure in the past, including a name change from Newtek Business (NASDAQ:NEWT) Services Corp. in 2013.
The details of the transaction were disclosed in a Form 4 filing with the Securities and Exchange Commission.
In other recent news, NewtekOne, Inc. has made significant strides in its business operations. The financial holding company announced the sale of its subsidiary, Newtek Technology Solutions, Inc., to Paltalk, Inc. This transaction, which includes a $4 million cash payment and 4 million shares of Paltalk's newly created preferred stock, comes as NewtekOne transitions to a financial holding company after acquiring Newtek Bank. Additional earn-out payments up to $5 million are contingent on future Adjusted EBITDA performance.
On the financial front, NewtekOne reported a successful second quarter for 2024 with earnings per share (EPS) of $0.43, surpassing analysts' expectations. The company has also reaffirmed its EPS guidance for the full year, ranging between $1.85 and $2.05. These recent developments underscore the company's robust financial performance, including deposit and loan growth, as well as the successful launch of the Newtek Advantage business portal.
Furthermore, NewtekOne remains focused on customer retention and diversifying earnings through SBA lending, lower-cost business accounts, and service automation. The company's updated guidance for 2024 anticipates higher expenses due to infrastructure investments and lower loan production, yet maintains its EPS guidance. These developments highlight NewtekOne's commitment to achieving its financial goals and providing value to its clients and shareholders.
InvestingPro Insights
NewtekOne, Inc. (NASDAQ:NEWT) has recently been the subject of an insider stock transaction, which often garners attention from investors seeking to understand the company's financial health and future prospects. In light of this event, key metrics provided by InvestingPro offer valuable insights into NewtekOne's current financial position and performance.
One of the standout metrics for NewtekOne is its high shareholder yield, which is a positive sign for investors looking for returns through dividends and stock repurchases. Additionally, NewtekOne has maintained dividend payments for 10 consecutive years, demonstrating a commitment to returning value to shareholders consistently over time. This is further supported by the company's substantial dividend yield of 6.08%, as of the latest data.
From a valuation standpoint, NewtekOne is trading at a low P/E ratio of 7.53, suggesting that the stock may be undervalued relative to near-term earnings growth. This is complemented by a PEG ratio of 0.44, indicating that the company's growth rate is not fully reflected in its current stock price. Moreover, the company's revenue growth has been strong, with a 54.13% increase over the last twelve months as of Q2 2024.
Despite recent volatility, with the stock price having decreased by 13.07% over the past month, NewtekOne's fundamentals appear robust. The company has also been profitable over the last twelve months, and analysts predict it will continue to be profitable this year. With liquid assets exceeding short-term obligations, NewtekOne's financial stability is reinforced, which may provide some reassurance to investors concerned about the recent insider sale.
For those interested in a deeper analysis, there are additional InvestingPro Tips available for NewtekOne. These tips provide more nuanced insights into the company's performance and potential investment opportunities. To explore these further, visit the InvestingPro platform for NewtekOne.
It is important for investors to consider these metrics in conjunction with insider trading activities to form a comprehensive view of NewtekOne's investment potential. As always, individual transactions should be weighed against the backdrop of broader financial data and market trends.
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