BidaskClub Downgrades NEWTEK Business Services (NEWT) to Buy

BidaskClub cut shares of NEWTEK Business Services (NASDAQ:NEWT) from a strong-buy rating to a buy rating in a research note published on Friday, BidAskClub reports.

A number of other equities research analysts also recently weighed in on NEWT. ValuEngine upgraded shares of NEWTEK Business Services from a hold rating to a buy rating in a research note on Wednesday, May 1st. Zacks Investment Research upgraded shares of NEWTEK Business Services from a hold rating to a buy rating and set a $23.00 price target on the stock in a research note on Thursday, April 4th. TheStreet downgraded shares of NEWTEK Business Services from a b rating to a c+ rating in a research note on Monday, March 11th. Finally, Compass Point initiated coverage on shares of NEWTEK Business Services in a research note on Friday, March 8th. They set a neutral rating and a $19.00 price target on the stock. One research analyst has rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. NEWTEK Business Services has a consensus rating of Buy and a consensus price target of $19.17.

Shares of NEWTEK Business Services stock traded up $0.08 during midday trading on Friday, hitting $22.41. The company had a trading volume of 43,341 shares, compared to its average volume of 79,001. The company has a market cap of $428.26 million, a price-to-earnings ratio of 11.55 and a beta of 1.39. The company has a current ratio of 0.35, a quick ratio of 0.35 and a debt-to-equity ratio of 0.34. NEWTEK Business Services has a 1-year low of $15.59 and a 1-year high of $24.24.

NEWTEK Business Services (NASDAQ:NEWT) last announced its quarterly earnings data on Wednesday, May 1st. The business services provider reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.41 by $0.03. The business had revenue of $13.76 million for the quarter. NEWTEK Business Services had a net margin of 70.19% and a return on equity of 8.99%. As a group, research analysts forecast that NEWTEK Business Services will post 2.25 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 28th. Shareholders of record on Friday, June 14th will be paid a dividend of $0.46 per share. The ex-dividend date is Thursday, June 13th. This represents a $1.84 dividend on an annualized basis and a yield of 8.21%. This is an increase from NEWTEK Business Services’s previous quarterly dividend of $0.40. NEWTEK Business Services’s payout ratio is currently 82.47%.

In other NEWTEK Business Services news, CEO Barry Sloane purchased 4,000 shares of the firm’s stock in a transaction on Wednesday, March 20th. The shares were purchased at an average price of $19.70 per share, for a total transaction of $78,800.00. Following the completion of the purchase, the chief executive officer now directly owns 1,023,708 shares of the company’s stock, valued at $20,167,047.60. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Insiders have acquired 4,782 shares of company stock worth $94,898 in the last quarter. Corporate insiders own 6.30% of the company’s stock.

Several large investors have recently modified their holdings of the company. Private Portfolio Partners LLC boosted its stake in shares of NEWTEK Business Services by 1.6% in the 1st quarter. Private Portfolio Partners LLC now owns 29,599 shares of the business services provider’s stock valued at $581,000 after purchasing an additional 479 shares in the last quarter. Chubb Ltd boosted its stake in shares of NEWTEK Business Services by 3.2% in the 1st quarter. Chubb Ltd now owns 17,308 shares of the business services provider’s stock valued at $339,000 after purchasing an additional 543 shares in the last quarter. Cambridge Investment Research Advisors Inc. boosted its stake in shares of NEWTEK Business Services by 8.0% in the 4th quarter. Cambridge Investment Research Advisors Inc. now owns 10,712 shares of the business services provider’s stock valued at $187,000 after purchasing an additional 797 shares in the last quarter. Fusion Family Wealth LLC boosted its stake in shares of NEWTEK Business Services by 11.9% in the 4th quarter. Fusion Family Wealth LLC now owns 10,841 shares of the business services provider’s stock valued at $189,000 after purchasing an additional 1,150 shares in the last quarter. Finally, Wells Fargo & Company MN boosted its stake in shares of NEWTEK Business Services by 7.5% in the 1st quarter. Wells Fargo & Company MN now owns 31,730 shares of the business services provider’s stock valued at $623,000 after purchasing an additional 2,217 shares in the last quarter. Institutional investors own 19.35% of the company’s stock.

About NEWTEK Business Services

Newtek Business Services Corp. is a business development company specializing in providing financial and business services to the small-and medium-sized business market in the United States. The firm also seeks to invest in early stage businesses. The firm seeks to makes both debt and equity investments.

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