In a recent transaction on May 22, Nicolas Young, the President of Newtek Bank, N.A., a subsidiary of NewtekOne, Inc. (NASDAQ:NEWT), purchased 500 shares of the company's common stock at a price of $13.23 per share. This investment amounted to a total of $6,615, signaling confidence in the financial institution's future prospects.
Nicolas Young's acquisition of additional shares has brought his total ownership in NewtekOne to 30,691 shares, according to the latest filings. This move by a high-ranking executive often garners attention from investors as it may reflect the insider's belief in the company's current valuation and future performance.
NewtekOne, Inc., known for its role in the national commercial banking sector, has its headquarters in Boca Raton, Florida. The company has undergone a name change from Newtek Business (NASDAQ:NEWT) Services Corp. and continues to operate under the trading symbol NEWT on the NASDAQ exchange.
Investors and market watchers often look to such transactions for insights into the sentiment of company insiders. The purchase of company stock by an executive is typically viewed as a positive sign, suggesting that the leadership has a vested interest in the company's success and may anticipate positive developments.
The transaction was publicly disclosed in compliance with SEC regulations, providing transparency to shareholders and the broader investment community. As with all insider transactions, the details are available for review to ensure full disclosure of executive dealings in the company's stock.
InvestingPro Insights
Following the insider purchase by Nicolas Young, NewtekOne, Inc. (NASDAQ:NEWT) investors may be interested in some key metrics and insights from InvestingPro that could help in evaluating the company's current market standing. According to InvestingPro data, NewtekOne has a market capitalization of approximately $325.5 million and a Price to Earnings (P/E) ratio of 8.6, which adjusts to 8.83 when looking at the last twelve months as of Q1 2024. This valuation metric can be particularly relevant for investors trying to determine if the stock is trading at a fair price relative to its earnings.
The company has also shown significant revenue growth of 76.21% over the last twelve months as of Q1 2024, which may indicate a strong business expansion or successful acquisition strategy. This growth is complemented by a solid gross profit margin of 83.61%, suggesting efficient cost management and a potentially strong competitive position in the commercial banking sector.
InvestingPro Tips for NewtekOne include the high shareholder yield and the fact that the company has maintained dividend payments for 10 consecutive years, with a recent dividend yield of 5.82%. This consistent return to shareholders could be a compelling factor for income-focused investors. Additionally, the company has been profitable over the last twelve months and analysts predict it will remain profitable this year, which may bolster investor confidence in the company's financial health.
For those looking for more insights, there are additional InvestingPro Tips available that provide deeper analysis into NewtekOne's financials, performance, and market outlook. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and unlock the full potential of InvestingPro's expert analysis.
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