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BOCA RATON, Fla. - NewtekOne, Inc. (NASDAQ:NEWT), a financial holding company currently valued at $264 million, has announced the termination of three office space leases, resulting in an annual cost reduction of approximately $2 million starting in the second quarter of 2025. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics, with analysts setting price targets between $13.50 and $18.70. This decision comes as part of the company’s transition to a predominantly remote workforce, leveraging its technology platform to engage with clients and manage operations without the need for traditional banking facilities.
Barry Sloane, CEO, President, and Chairman of NewtekOne, emphasized the company’s commitment to growth through technological advancements, which allow for efficient and effective client service. The remote work model not only aligns with the company’s strategic goals but also contributes to its strong profitability, particularly in the current volatile economic climate.
The company’s technological capabilities enable customer-facing staff to use on-camera interactions to gather deposits, originate loans, and offer business and financial solutions to clients. This shift is consistent with the company’s focus on operating expense management and its efforts to maintain high levels of pre-provision net revenue.
NewtekOne’s recent performance highlights include the digital opening of over 15,000 deposit accounts and the growth of its loan portfolio from $167 million to $774 million since the acquisition of Newtek Bank in January 2023. The company’s consolidated balance sheet reached $2.1 billion as of December 31, 2024. Financial data from InvestingPro shows the company maintains strong fundamentals with revenue of $339 million and an impressive gross profit margin of 83%. The company trades at a P/E ratio of 5.1, suggesting an attractive valuation relative to peers.
The company, which has been serving independent business owners across the United States since 1999, offers a variety of business and financial solutions, including banking, lending, payment processing, insurance, and payroll services, as well as technology solutions like cloud computing and IT consulting. Notable for investors, the company maintains a significant 7.6% dividend yield and has consistently paid dividends for 11 consecutive years. Discover more detailed insights and 12 additional ProTips about NewtekOne with an InvestingPro subscription, including exclusive access to comprehensive Pro Research Reports covering 1,400+ top US stocks.
The information provided is based on a press release statement from NewtekOne, Inc. The forward-looking statements in the release are subject to risks and uncertainties, and actual results may differ materially. The company has cautioned that preliminary estimates of loan and deposit metrics are subject to change pending regulatory filings and the filing of the Company’s Form 10-Q for the period ended March 31, 2025.
In other recent news, NewtekOne, Inc. reported its fourth-quarter 2024 earnings, surpassing market expectations with an earnings per share (EPS) of $0.69, compared to the forecasted $0.66. The company also exceeded revenue expectations, reporting $75.37 million against the anticipated $68.14 million. In a significant financial development, NewtekOne completed a $30 million offering of 8.375% notes due in 2030, with the net proceeds aimed at refinancing existing debt and supporting corporate activities. Egan-Jones Ratings Company subsequently upgraded NewtekOne’s credit rating from "BBB+" to "A-", citing the company’s robust financial ratios as influential factors.
Additionally, NewtekOne announced changes to its board with the retirement of Salvatore Mulia and the appointment of Fernando Perez-Hickman to the Audit Committee. The company also appointed John O’Connor as the Chief Revenue Officer of its payment processing subsidiary, Newtek Merchant Solutions, aiming to integrate merchant processing services with broader business offerings. These developments reflect NewtekOne’s strategic focus on enhancing its leadership structure and expanding its suite of business solutions.
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