In a recent move, Michael Scott Price, the Chief Financial Officer of NewtekOne, Inc. (NASDAQ:NEWT), has increased his stake in the company through the purchase of shares valued at a total of $25,184. The transactions, which took place on June 17, 2024, were executed at prices ranging from $12.5798 to $12.605 per share.
The CFO's purchase involved two separate transactions, each consisting of 1,000 shares of common stock. Following these acquisitions, Price's total ownership in NewtekOne stands at 21,681 shares. These transactions reflect a vote of confidence from the CFO in the company's future prospects and financial health.
NewtekOne, Inc., with its headquarters in Boca Raton, Florida, operates within the national commercial banks sector. The company, formerly known as Newtek Business (NASDAQ:NEWT) Services Corp., has undergone a name change but continues to focus on providing financial services.
Investors often monitor the buying and selling activities of company insiders as these can provide insights into the company's performance and management's expectations. The recent purchases by NewtekOne's CFO may thus be of interest to current and potential shareholders.
The details of the transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission, as required by federal securities laws. These filings are publicly accessible and provide transparency into the trading activities of company executives and other insiders.
In other recent news, NewtekOne, Inc. has reported a strong start to 2024, exceeding its first-quarter 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 announced a 5.5% increase in its quarterly dividend. NewtekOne's alternative loan program is showing promise, with a reported 20%-30% return on equity.
The company is also making strides in its banking operations, with Newtek Bank National Association reporting a 9% deposit growth and an 11% loan growth sequentially, along with the addition of approximately 6,000 depository accounts. NewtekOne is planning to implement the NetSuite financial reporting platform in the second half of 2024, and is optimistic about its ability to attract customers with its no-service-fee, interest-bearing account model starting in Q2 2024.
Despite some concerns about commercial real estate and the impact of rising interest rates on the banking industry, NewtekOne is confident in its diversified loan portfolio and strong credit and risk management. These are the latest developments in the company's ongoing efforts to adapt to industry trends and focus on client success.
InvestingPro Insights
In light of the Chief Financial Officer's recent investment in NewtekOne, Inc. (NASDAQ:NEWT), it is worth considering some key financial metrics and insights that may underline the confidence demonstrated by this insider trading. According to InvestingPro data, NewtekOne has a market capitalization of $310.16 million and an attractive price-to-earnings (P/E) ratio of 8.26, which slightly increased to 8.44 when adjusted for the last twelve months as of Q1 2024. This valuation metric suggests that the company is potentially undervalued compared to earnings.
The company has also shown a robust revenue growth of 76.21% over the last twelve months leading up to Q1 2024. Such a significant increase in revenue may indicate the company's successful expansion and operational efficiency, possibly contributing to the CFO's decision to invest further in NewtekOne.
InvestingPro Tips highlight that NewtekOne has maintained dividend payments for 10 consecutive years, with a current dividend yield of 6.08%. This consistent dividend track record and the yield could be appealing to income-focused investors. Additionally, the company's liquid assets exceed its short-term obligations, providing financial stability and the ability to cover immediate liabilities. These aspects offer a glimpse into the company's financial health and its potential to sustain growth and shareholder value.
For those seeking a deeper analysis, InvestingPro offers additional tips on NewtekOne, Inc. By visiting https://www.investing.com/pro/NEWT, readers can access a comprehensive set of insights. For example, analysts predict the company will be profitable this year, and it has been profitable over the last twelve months, which aligns with the CFO's positive stance on the company's prospects. Moreover, the platform lists a total of 7 InvestingPro Tips for NewtekOne, providing a wealth of information for both current and prospective investors.
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