Salvatore Mulia, a director at NewtekOne, Inc. (NASDAQ:NEWT), has recently increased his stake in the company by purchasing additional shares. On September 20, 2024, Mulia acquired 500 shares of NewtekOne's common stock at a price of $11.72 per share, totaling an investment of $5,860.
This transaction demonstrates Mulia's continued commitment to NewtekOne, as it increases his direct ownership in the company to 45,791 shares. The purchase at $11.72 per share reflects the current market valuation of NewtekOne at the time of the transaction.
Investors often monitor insider buying as it can be an indicator of an executive's confidence in the company's future prospects. Mulia's position as a director gives him a unique perspective on NewtekOne's operations and potential, making his investment decisions particularly noteworthy to current and potential shareholders.
NewtekOne, headquartered in Boca Raton, Florida, operates within the national commercial banks industry and has undergone a name change from Newtek Business (NASDAQ:NEWT) Services Corp. in 2013. The company's fiscal year ends on December 31, and it is incorporated in Maryland.
The recent acquisition by Director Mulia is a straightforward transaction without any derivatives involved, as indicated by the SEC filing. This purchase adds to the narrative of insider activity at NewtekOne, providing investors with additional data to consider when evaluating the company's stock.
In other recent news, NewtekOne, Inc. has made significant moves in the financial sector. The company successfully closed a public offering of 8.625% Fixed Rate Senior Notes, raising $75 million in aggregate principal. The notes are set to mature in 2029, with interest payments commencing in 2025. Morgan Stanley & Co. LLC, Keefe, Bruyette & Woods, Inc., Raymond James & Associates, Inc., and UBS Securities LLC served as joint book-running managers for the offering.
NewtekOne also announced the appointment of Andrew Kaplan as its Chief Strategy Officer. Kaplan's vast experience in banking and financial services is expected to bring valuable insights to the company's strategic initiatives. Additionally, the company divested its subsidiary, Newtek Technology Solutions, Inc., to Paltalk, Inc. The transaction involved a $4 million cash payment and 4 million shares of Paltalk's newly created preferred stock.
On the earnings front, NewtekOne exceeded analysts' expectations for Q2 2024 earnings, reporting an earnings per share (EPS) of $0.43. The company also confirmed its 2024 EPS guidance of $1.85 to $2.05. These are recent developments that highlight NewtekOne's strategic financial maneuvers and commitment to growth.
InvestingPro Insights
Salvatore Mulia's recent acquisition of NewtekOne shares adds a layer of confidence for investors observing insider activity. To further understand the investment landscape of NewtekOne, Inc., a glance at key metrics and InvestingPro Tips can provide a clearer picture. The company boasts a market capitalization of approximately $303.26 million, with a compelling price-to-earnings (P/E) ratio of 7.01, indicating that the stock might be undervalued relative to near-term earnings growth. This is supported by the company's low PEG ratio of 0.41 in the last twelve months as of Q2 2024, suggesting potential for growth compared to its earnings.
Moreover, NewtekOne has shown a solid financial performance with a gross profit margin of 83.07% and an operating income margin of 47.18% in the same period. These margins reflect the company's efficiency in managing its operations and profitability. Additionally, NewtekOne has a robust dividend yield of 6.45%, which is particularly attractive to income-focused investors. The company has not only paid but also increased its dividend for 10 consecutive years, demonstrating a commitment to returning value to shareholders.
InvestingPro Tips highlight that while three analysts have revised their earnings downwards for the upcoming period, the company is still predicted to be profitable this year and has been profitable over the last twelve months. Moreover, NewtekOne's liquid assets exceed its short-term obligations, which is a reassuring sign of the company's liquidity and financial health.
For investors interested in deeper analysis, there are additional InvestingPro Tips available, providing more nuanced insights into NewtekOne's performance and potential. These tips can be found at the dedicated InvestingPro page for NewtekOne, offering a comprehensive toolset for informed investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.