Newtek Business Services Inc. (NASDAQ:NEWT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday.
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. “
Several other equities research analysts have also recently weighed in on NEWT. Raymond James Financial Inc. cut their price objective on shares of Newtek Business Services from $16.00 to $15.00 and set an “outperform” rating for the company in a research report on Monday, August 15th. DA Davidson reaffirmed a “buy” rating and set a $16.00 price objective on shares of Newtek Business Services in a research report on Thursday, September 29th. One analyst has rated the stock with a sell rating and four have issued a buy rating to the company. The stock has an average rating of “Buy” and a consensus target price of $15.25.
Newtek Business Services (NASDAQ:NEWT) opened at 13.95 on Tuesday. The company has a market cap of $202.15 million, a price-to-earnings ratio of 5.66 and a beta of 0.96. Newtek Business Services has a 52 week low of $9.37 and a 52 week high of $17.80. The stock has a 50 day moving average of $13.94 and a 200 day moving average of $13.10.
Newtek Business Services (NASDAQ:NEWT) last posted its quarterly earnings data on Monday, August 8th. The company reported $0.34 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.37 by $0.03. Equities research analysts predict that Newtek Business Services will post $1.61 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Friday, September 30th. Shareholders of record on Tuesday, September 20th were paid a dividend of $0.43 per share. This is an increase from Newtek Business Services’s previous quarterly dividend of $0.35. The ex-dividend date of this dividend was Friday, September 16th. This represents a $1.72 annualized dividend and a yield of 12.33%. Newtek Business Services’s payout ratio is presently 85.15%.
A number of hedge funds and other institutional investors have recently modified their holdings of the company. MSI Financial Services Inc increased its position in shares of Newtek Business Services by 454.6% in the third quarter. MSI Financial Services Inc now owns 17,116 shares of the company’s stock valued at $244,000 after buying an additional 14,030 shares during the last quarter. Van ECK Associates Corp acquired a new position in shares of Newtek Business Services during the second quarter valued at approximately $690,000. West Family Investments Inc. increased its position in shares of Newtek Business Services by 2.3% in the second quarter. West Family Investments Inc. now owns 226,647 shares of the company’s stock valued at $2,883,000 after buying an additional 5,100 shares during the last quarter. Raymond James & Associates increased its position in shares of Newtek Business Services by 1.5% in the second quarter. Raymond James & Associates now owns 48,658 shares of the company’s stock valued at $619,000 after buying an additional 737 shares during the last quarter. Finally, HighTower Advisors LLC increased its position in shares of Newtek Business Services by 0.8% in the second quarter. HighTower Advisors LLC now owns 18,174 shares of the company’s stock valued at $237,000 after buying an additional 142 shares during the last quarter. 21.63% of the stock is owned by hedge funds and other institutional investors.
Newtek Business Services Company Profile
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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