NewtekOne Director Richard Salute Buys $5.9K in Company Shares by Investing.com

In a recent transaction, Richard Salute, director of NewtekOne, Inc. (NASDAQ:NEWT), increased its 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, for a total value of approximately $5,864.

This move by Mr. Salute demonstrates a commitment to the company as he now owns a total of 33,117 shares of NewtekOne, Inc. following the transaction. The acquisition comes at a time when investors are closely watching insider activity to gauge the level of confidence company executives and directors have in their own firms.

NewtekOne, Inc., listed in the national commercial banking sector, operates in Boca Raton, Florida. It recently underwent a name change from Newtek Business (NASDAQ: ) Services Corp. as part of its evolving brand identity.

Since insider trading is often seen as a signal of their faith in the company’s future performance, investors tend to follow such developments closely. It is worth noting that insider buying can be seen as a positive sign, as it can indicate that those with the most intimate knowledge of the company anticipate an increase in the stock’s value.

For those interested in following the company’s progress and insider trading, more details can be found in public filings available on the Securities and Exchange Commission’s website.

In other recent news, NewtekOne, Inc. made significant moves in the financial sector. The financial holding recently completed a $75 million offering of 8.625% Fixed Rate Senior Notes due 2029 with Morgan Stanley & Co. LLC, Keefe, Bruyette & Woods, Inc., Raymond James & Associates, Inc. and UBS Securities LLC. as joint accounting managers. The proceeds from this offering are expected to be used to finance investments, repay debt and for general corporate purposes.

NewtekOne also announced the appointment of Andrew Kaplan as Chief Strategy Officer. With over 35 years of banking and financial services experience, Kaplan brings a wealth of knowledge to the NewtekOne team, particularly in digital banking and line of business management.

The company also sold its subsidiary, Newtek Technology Solutions, Inc., to Paltalk, Inc. in a transaction involving a cash payment of $4 million and 4 million shares of Paltalk’s newly created preferred stock. This divestment is part of NewtekOne’s transition to a financial holding company following the acquisition of Newtek Bank.

On the earnings front, NewtekOne beat analyst expectations for Q2 2024, reporting earnings per share (EPS) of $0.43. The company also reaffirmed its full-year EPS guidance, projecting a range of $1.85 to $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. stock, a look at the company’s financials 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 InvestingPro’s Tips highlighting the price/ It’s low of the company. report.

Significantly, NewtekOne’s trailing twelve month revenue growth from Q2 2024 is an impressive 54.13% with a gross profit margin of 83.07%, indicating robust profitability in its operations. This performance is further supported by the company’s commitment to shareholder returns, as it has not only maintained but increased its dividend payments for 10 consecutive years, a factor that is highlighted by another InvestingPro tip. The current dividend yield is 6.52%, which is particularly attractive to income-focused investors.

For those considering an investment in NewtekOne, it is worth noting that the company’s liquid assets exceed short-term liabilities, providing financial stability and flexibility. Additionally, investors can take heart from the fact that analysts predict the company will be profitable this year, and indeed it has been profitable for the past 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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