In a recent transaction, Richard Salute, a director of NewtekOne, Inc. (NASDAQ:NEWT), increased his stake in the company. The purchase, which took place on September 20, involved 500 shares of common stock at a price of $11.7299 per share, totaling approximately $5,864.
This move by Mr. Salute demonstrates a commitment to the company, as he now holds a total of 33,117 shares of NewtekOne, Inc. following the transaction. The purchase comes at a time when investors are closely watching insider activities to gauge the confidence level of company executives and directors in their own firms.
NewtekOne, Inc., listed under the national commercial banks sector, operates out of Boca Raton, Florida. It has recently undergone a name change from Newtek Business (NASDAQ:NEWT) Services Corp. as part of its evolving brand identity.
As insiders' transactions are often considered a signal of their belief in the company's future performance, investors tend to keep a close eye on such developments. It is worth noting that insider buying can be seen as a positive sign, as it may indicate that those with the most intimate knowledge of the company anticipate an increase in stock value.
For those interested in following the company's progress and insider transactions, further details can be found in the public filings available on the Securities and Exchange Commission's website.
In other recent news, NewtekOne, Inc. has been making significant moves in the financial sector. The financial holding company recently closed a $75 million offering of 8.625% Fixed Rate Senior Notes due 2029, with Morgan Stanley (NYSE:MS) & Co. LLC, Keefe, Bruyette & Woods, Inc., Raymond James & Associates, Inc., and UBS Securities LLC serving as joint book-running managers. The proceeds from this offering are expected to be used for investment funding, debt repayment, and general corporate purposes.
NewtekOne also announced the appointment of Andrew Kaplan as its Chief Strategy Officer. With over 35 years of experience in banking and financial services, Kaplan brings a wealth of knowledge to the NewtekOne team, particularly in digital banking and business line management.
The company has also divested its subsidiary, Newtek Technology Solutions, Inc., to Paltalk, Inc. in a transaction involving a $4 million cash payment and 4 million shares of Paltalk's newly created preferred stock. This divestiture is part of NewtekOne's transition to a financial holding company, following its acquisition of Newtek Bank.
On the earnings front, NewtekOne surpassed analysts' expectations for Q2 2024, reporting an earnings per share (EPS) of $0.43. The company has also reaffirmed its full-year EPS guidance, projecting a range between $1.85 and $2.05. These are the recent developments that highlight NewtekOne's strategic financial maneuvers and commitment to growth.
InvestingPro Insights
Following Richard Salute's recent purchase of NewtekOne, Inc. shares, a look at the company's financial metrics and InvestingPro Tips reveals a deeper understanding of the company's current position. According to InvestingPro data, NewtekOne, Inc. has a market capitalization of approximately $302.48 million. The company boasts a price-to-earnings (P/E) ratio of 7.01, which suggests the stock may be undervalued relative to near-term earnings growth, an observation that aligns with one of the InvestingPro Tips highlighting the company's low P/E ratio.
Significantly, NewtekOne's revenue growth over the last twelve months as of Q2 2024 stands at an impressive 54.13%, with a gross profit margin of 83.07%, indicating robust profitability in its operations. This performance is further underpinned by the company's commitment to shareholder returns, as it has not only maintained but also grown its dividend payments for 10 consecutive years, a factor that is underscored by another InvestingPro Tip. The current dividend yield is a substantial 6.52%, which is particularly attractive for income-focused investors.
For those considering an investment in NewtekOne, it's worth noting that the company's liquid assets exceed its short-term obligations, providing financial stability and flexibility. Additionally, investors can find encouragement in the fact that analysts predict the company will be profitable this year, and it has indeed been profitable over the last twelve months. For more InvestingPro Tips related to NewtekOne, Inc., investors can visit https://www.investing.com/pro/NEWT, where a total of 7 additional tips are available to help guide investment decisions.
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