NEWTEK Business Services (NASDAQ:NEWT) Cut to “Strong Sell” at Zacks Investment Research

Zacks Investment Research cut shares of NEWTEK Business Services (NASDAQ:NEWT) from a hold rating to a strong sell rating in a research note issued to investors on Wednesday, January 3rd.

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. “

Other equities research analysts have also recently issued reports about the company. Keefe, Bruyette & Woods reissued a hold rating and issued a $18.00 target price on shares of NEWTEK Business Services in a research note on Friday, October 13th. BidaskClub raised NEWTEK Business Services from a buy rating to a strong-buy rating in a research note on Wednesday, December 27th. Finally, ValuEngine downgraded NEWTEK Business Services from a strong-buy rating to a buy rating in a report on Tuesday, October 31st. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and two have given a buy rating to the company. The company has a consensus rating of Hold and a consensus target price of $18.50.

Shares of NEWTEK Business Services (NASDAQ NEWT) opened at $17.82 on Wednesday. NEWTEK Business Services has a 12 month low of $15.15 and a 12 month high of $19.40. The company has a market capitalization of $324.08, a price-to-earnings ratio of 10.80, a PEG ratio of 3.15 and a beta of 1.42. The company has a quick ratio of 0.42, a current ratio of 0.42 and a debt-to-equity ratio of 0.26.

NEWTEK Business Services (NASDAQ:NEWT) last released its earnings results on Wednesday, November 1st. The business services provider reported ($0.07) EPS for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.55). NEWTEK Business Services had a return on equity of 7.97% and a net margin of 78.03%. equities research analysts anticipate that NEWTEK Business Services will post 1.83 EPS for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 30th. Stockholders of record on Tuesday, March 20th will be issued a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 8.98%. The ex-dividend date is Monday, March 19th. NEWTEK Business Services’s payout ratio is currently 106.67%.

In other NEWTEK Business Services news, CEO Barry Sloane purchased 3,000 shares of the stock in a transaction dated Monday, November 6th. The shares were purchased at an average cost of $16.60 per share, with a total value of $49,800.00. Following the completion of the acquisition, the chief executive officer now directly owns 1,006,113 shares in the company, valued at approximately $16,701,475.80. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Richard J. Salute purchased 1,468 shares of the stock in a transaction dated Friday, November 10th. The shares were acquired at an average cost of $17.07 per share, for a total transaction of $25,058.76. Following the completion of the acquisition, the director now owns 7,734 shares of the company’s stock, valued at $132,019.38. The disclosure for this purchase can be found here. Over the last ninety days, insiders have bought 8,068 shares of company stock worth $137,966. Corporate insiders own 6.70% of the company’s stock.

A number of hedge funds have recently bought and sold shares of NEWT. OxFORD Asset Management LLP bought a new position in NEWTEK Business Services in the second quarter valued at about $936,000. Van ECK Associates Corp lifted its holdings in NEWTEK Business Services by 27.2% in the second quarter. Van ECK Associates Corp now owns 141,029 shares of the business services provider’s stock valued at $2,297,000 after acquiring an additional 30,180 shares during the period. Stifel Financial Corp lifted its holdings in NEWTEK Business Services by 55.4% in the third quarter. Stifel Financial Corp now owns 47,302 shares of the business services provider’s stock valued at $844,000 after acquiring an additional 16,866 shares during the period. Mckinley Capital Management LLC Delaware lifted its holdings in NEWTEK Business Services by 11.4% in the third quarter. Mckinley Capital Management LLC Delaware now owns 151,429 shares of the business services provider’s stock valued at $2,699,000 after acquiring an additional 15,548 shares during the period. Finally, Arrowstreet Capital Limited Partnership bought a new position in NEWTEK Business Services in the second quarter valued at about $207,000. 20.98% of the stock is currently owned by institutional investors.

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About NEWTEK Business Services

Newtek Business Services Corp. is an internally managed non-diversified closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation primarily through loans originated by its small business finance platform and its equity investments in certain portfolio companies that it controls.

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