NewtekOne (NASDAQ:NEWT) Announces Earnings Results

NewtekOne (NASDAQ:NEWT) issued its quarterly earnings results on Thursday. The business services provider reported $0.47 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.47, FiscalAI reports. The business had revenue of $90.05 million for the quarter, compared to analyst estimates of $75.00 million. NewtekOne had a net margin of 16.15% and a return on equity of 19.00%.

Here are the key takeaways from NewtekOne’s conference call:

• Second-quarter EPS was $0.48 basic and $0.47 diluted, while tangible book value continued to grow; management highlighted 75.3% tangible book value per-share growth over the 12 quarters since the bank-holding-company conversion.
• Deposits reached approximately $2.2 billion, with core consumer deposits increasing by $297 million during the quarter and 81% of deposit accounts insured below the $250,000 threshold. Management cited low-cost digital account acquisition and sticky deposits as key advantages.
• Newtek plans to hold more SBA-guaranteed and C&I loans on the bank’s balance sheet, shifting revenue from gain-on-sale income toward net interest income. Executives acknowledged this could pressure headline EPS over the next several quarters, and guidance is being reevaluated over the next 45 to 60 days.
• Credit metrics were mixed: net charge-offs improved, but 30-day delinquencies and guaranteed-loan nonperforming assets increased. Management said reserves remain appropriate, with 89% of the allowance for credit losses allocated to unguaranteed SBA 7(a) loans, and expects full recovery on the $15 million Simad Holdings exposure despite its bankruptcy.
• Management emphasized its technology platform—including digital onboarding, automated loan processing, real-time payments and the Newtek Advantage portal—as a potential competitive and licensing opportunity. The company said it is pursuing white-label or infrastructure relationships with other financial institutions, although adoption may take time.

NewtekOne Price Performance

Shares of NewtekOne stock opened at $14.95 on Friday. The firm has a market cap of $431.91 million, a PE ratio of 6.59 and a beta of 1.27. NewtekOne has a twelve month low of $9.59 and a twelve month high of $15.69. The company has a quick ratio of 0.64, a current ratio of 0.64 and a debt-to-equity ratio of 6.76. The business has a 50-day moving average price of $14.34 and a 200 day moving average price of $13.28.

NewtekOne Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 1st. Stockholders of record on Wednesday, June 24th were given a dividend of $0.19 per share. The ex-dividend date was Wednesday, June 24th. This represents a $0.76 dividend on an annualized basis and a dividend yield of 5.1%. NewtekOne’s dividend payout ratio (DPR) is 33.48%.

Insider Activity

In related news, CEO Barry Sloane purchased 11,000 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The shares were purchased at an average price of $14.21 per share, with a total value of $156,310.00. Following the purchase, the chief executive officer owned 1,176,914 shares of the company’s stock, valued at $16,723,947.94. The trade was a 0.94% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. In the last 90 days, insiders purchased 18,567 shares of company stock worth $261,156. Company insiders own 5.90% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Advisory Services Network LLC acquired a new position in NewtekOne in the 3rd quarter valued at $46,000. Quantbot Technologies LP acquired a new stake in shares of NewtekOne in the second quarter valued at approximately $107,000. Cerity Partners LLC grew its holdings in NewtekOne by 18.0% in the 4th quarter. Cerity Partners LLC now owns 13,714 shares of the business services provider’s stock valued at $156,000 after buying an additional 2,095 shares in the last quarter. Mercer Global Advisors Inc. ADV acquired a new stake in shares of NewtekOne in the 3rd quarter worth $191,000. Finally, Kestra Advisory Services LLC raised its holdings in shares of NewtekOne by 13.7% during the 4th quarter. Kestra Advisory Services LLC now owns 17,742 shares of the business services provider’s stock worth $201,000 after acquiring an additional 2,136 shares during the period. Institutional investors and hedge funds own 38.35% of the company’s stock.

Analysts Set New Price Targets

NEWT has been the subject of several research analyst reports. Keefe, Bruyette & Woods raised their price objective on NewtekOne from $12.00 to $13.00 and gave the stock a “market perform” rating in a research note on Friday, May 1st. Raymond James Financial upgraded shares of NewtekOne to a “hold” rating in a research note on Wednesday, July 1st. Finally, Weiss Ratings upgraded shares of NewtekOne from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Monday, July 13th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $15.00.

About NewtekOne

NewtekOne, Inc (NASDAQ: NEWT) is a publicly traded business development company that specializes in providing financial and business services to small and medium‐sized enterprises across the United States. Operating under the trade name The Newtek Small Business Finance, the company offers a diversified array of lending solutions designed to meet the working capital, equipment acquisition and growth needs of its clients.

The company’s core lending offerings include Small Business Administration (SBA) 7(a) loans, equipment financing, lines of credit and commercial real estate financing.