Newtek Business Services Inc. (NEWT) Lowered to Sell at Zacks Investment Research
According to Zacks, “Newtek Capital, Inc. resulted from the combination of the businesses previously owned by BJB Holdings, Inc. and REXX Environmental Corporation and is operating as a holding company for a network of partner companies in a collaborative and coordinated effort to develop successful businesses in a number of existing as well as emerging, technological business lines. “
A number of other research firms have also recently commented on NEWT. Raymond James Financial Inc. dropped their target price on shares of Newtek Business Services from $16.00 to $15.00 and set an outperform rating for the company in a report on Monday, August 15th. DA Davidson reaffirmed a buy rating and issued a $16.00 price objective on shares of Newtek Business Services in a research note on Thursday, September 29th. One investment analyst has rated the stock with a sell rating and four have given a buy rating to the stock. The stock presently has an average rating of Buy and a consensus target price of $15.25.
Newtek Business Services (NASDAQ:NEWT) opened at 14.08 on Tuesday. Newtek Business Services has a 52 week low of $9.37 and a 52 week high of $17.80. The firm has a 50-day moving average of $13.96 and a 200-day moving average of $13.11. The company has a market cap of $204.03 million, a price-to-earnings ratio of 5.71 and a beta of 0.96.
Newtek Business Services (NASDAQ:NEWT) last posted its earnings results on Monday, August 8th. The company reported $0.34 EPS for the quarter, missing analysts’ consensus estimates of $0.37 by $0.03. Equities analysts forecast that Newtek Business Services will post $1.61 earnings per share for the current year.
The company also recently announced a quarterly dividend, which was paid on Friday, September 30th. Shareholders of record on Tuesday, September 20th were given a dividend of $0.43 per share. This represents a $1.72 dividend on an annualized basis and a yield of 12.14%. The ex-dividend date was Friday, September 16th. This is an increase from Newtek Business Services’s previous quarterly dividend of $0.35. Newtek Business Services’s dividend payout ratio is currently 85.15%.
Hedge funds have recently added to or reduced their stakes in the stock. Royce & Associates LP increased its stake in Newtek Business Services by 2.9% in the first quarter. Royce & Associates LP now owns 380,682 shares of the company’s stock worth $4,759,000 after buying an additional 10,782 shares in the last quarter. UBS Group AG increased its stake in Newtek Business Services by 3.6% in the first quarter. UBS Group AG now owns 193,267 shares of the company’s stock worth $2,416,000 after buying an additional 6,650 shares in the last quarter. Chubb Ltd. purchased a new stake in Newtek Business Services during the first quarter worth $187,000. Wellington Management Group LLP increased its stake in Newtek Business Services by 28.7% in the first quarter. Wellington Management Group LLP now owns 732,269 shares of the company’s stock worth $9,153,000 after buying an additional 163,486 shares in the last quarter. Finally, PARK CIRCLE Co purchased a new stake in Newtek Business Services during the second quarter worth $112,000. 21.63% of the stock is owned by institutional investors and hedge funds.
About Newtek Business Services
Newtek Business Services Corp. is a non-diversified closed-end management investment company. The Company is engaged in non-bank lending providing a range of business services and financial products under the Newtek brand to the small- and medium-sized business (SMB) market. Its products and services consist of Business Lending, Electronic Payment Processing, Managed Technology Solutions (Cloud Computing), e-commerce, Accounts Receivable Financing, The Secure Gateway, The Newtek Advantage, personal and commercial Insurance Services, Web Services, Data Backup, Storage and Retrieval, and Payroll Solutions.
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