In a recent transaction, Director Salvatore Francis of NewtekOne, Inc. (NASDAQ:NEWT), a company operating in the national commercial banking sector, sold a total of $9,352 worth of company stock. The sale took place on June 21, 2024, with the shares being sold at a price of $12.47 each.
The transaction was executed under a pre-arranged 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule to sell stocks at a time when they are not in possession of material non-public information. This plan had been adopted by Francis on June 20, 2023, a year prior to the sale.
Following the sale, Salvatore Francis retains ownership of 46,991 shares of NewtekOne common stock. The sell-off by the director comes as part of the normal course of action for many executives and insiders, who may dispose of shares for personal financial management, estate planning, or diversification purposes.
Investors often keep an eye on insider transactions as they can provide insights into an insider’s view of the company’s valuation. It is important to note that insider selling does not necessarily indicate a lack of confidence in the company; it must be looked at in the broader context of the individual’s investment strategy and the company’s performance.
NewtekOne, formerly known as Newtek Business (NASDAQ:NEWT) Services Corp., has its headquarters in Boca Raton, Florida, and operates under the leadership of an experienced management team. The company’s stock is publicly traded, and interested parties can follow its performance on the NASDAQ exchange under the ticker symbol NEWT.
In other recent news, NewtekOne exceeded its Q1 guidance and raised its FY2024 outlook, reporting core earnings of $0.38 per share. The company has also increased its quarterly dividend by 5.5%. NewtekOne's alternative loan program has shown promising returns, and the company has added approximately 6,000 depository accounts.
NewtekOne is planning to implement the NetSuite financial reporting platform in the second half of 2024 and forecasts strong profitability. However, the company anticipates some challenges in the banking sector, including charge-offs peaking within 18 to 40 months and a projected rise in expenses due to continued investment in operations.
Despite these challenges, NewtekOne remains confident in its diversified loan portfolio and its Newtek Advantage program, which leverages artificial intelligence for efficiency. These recent developments highlight NewtekOne's continued commitment to adapting to industry trends and focusing on client success.
InvestingPro Insights
In light of the recent insider transaction involving Director Salvatore Francis of NewtekOne, Inc. (NASDAQ:NEWT), potential and current investors may find the following InvestingPro Insights particularly informative. NewtekOne, with its robust market presence in the national commercial banking sector, has exhibited some noteworthy financial metrics that could impact investor perception and decision-making.
Firstly, the company's market capitalization stands at a solid $304.47 million, reflecting a considerable size within its market segment. Moreover, the P/E ratio, a key indicator of a stock's valuation, is currently at 8.14, with a slight adjustment in the last twelve months as of Q1 2024 to 8.27. This figure suggests that the stock may be reasonably valued compared to its earnings, which could reassure investors looking for stable investment opportunities.
Furthermore, NewtekOne's revenue growth has been impressive, with a significant 76.21% increase in the last twelve months as of Q1 2024. Such a surge in revenue is indicative of the company's ability to expand its business and generate higher sales, which is a positive sign for stakeholders interested in the company's growth potential.
An InvestingPro Tip worth noting is that NewtekOne has a high shareholder yield, which is complemented by the fact that the company pays a substantial dividend to shareholders. The dividend yield currently stands at 6.23%, and the company has maintained its dividend payments for 10 consecutive years, demonstrating a commitment to returning value to shareholders. Additionally, the company's liquid assets exceed its short-term obligations, suggesting financial stability and a lower risk of liquidity issues.
For those seeking a deeper dive into the financial health and future outlook of NewtekOne, there are additional InvestingPro Tips available, including insights into the company's cash burn rate and profitability predictions by analysts for the year. To access these valuable tips, visit the InvestingPro platform at https://www.investing.com/pro/NEWT and take advantage of the special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are currently 8 additional InvestingPro Tips listed for NewtekOne, which could further enrich your investment strategy.
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