"NewtekOne CEO Barry Sloane Increases Stake: What This Means for Investors"
Barry Sloane, the esteemed Chairman and CEO of NewtekOne, Inc. (NASDAQ:NEWT), has recently acquired additional shares of the company’s common stock, according to a meticulous SEC filing. This insider transaction, executed on September 23, 2024, saw Sloane purchasing 41,134 shares at prices ranging from $11.68 to $11.9195, culminating in an investment of approximately $471,559.
This strategic move underscores Sloane’s unwavering confidence in NewtekOne’s future prospects. Post-transaction, Sloane’s direct holdings in the company have surged to an impressive total of 1,187,457 shares.
Moreover, the filing reveals that Sloane made a significant gift of 40,134 shares to the CAMCO ONE IRREVOCABLE TRUST, for which he is the grantor. These shares, recorded at a value of $0 due to their status as a bona fide gift, are no longer under Sloane’s voting or investment control, as he has disclaimed beneficial ownership.
Recent Developments and Strategic Moves at NewtekOne
In a noteworthy public offering, NewtekOne, Inc. successfully raised $75 million through 8.625% Fixed Rate Senior Notes due in 2029. The offering was underwritten by prominent financial institutions including Morgan Stanley & Co. LLC, Keefe, Bruyette & Woods, Inc., Raymond James & Associates, Inc., and UBS Securities LLC. The raised capital is earmarked for investment funding, debt repayment, and general corporate purposes.
Additionally, the company has appointed Andrew Kaplan as its new Chief Strategy Officer, leveraging his extensive expertise in banking and financial services. In a pivotal restructuring move, NewtekOne divested its subsidiary, Newtek Technology Solutions, Inc., to Paltalk, Inc. This transaction involved a $4 million cash payment and 4 million shares of Paltalk’s newly created preferred stock.
On the financial front, NewtekOne reported Q2 2024 earnings per share of $0.43, surpassing analysts’ expectations. The company has also reaffirmed its full-year earnings per share guidance of $1.85 to $2.05, reflecting robust financial health and strategic growth.
InvestingPro Insights: Key Metrics and Expert Analysis
Following Barry Sloane’s recent insider transactions, market participants can derive further insights from InvestingPro’s expert analysis. NewtekOne boasts a market capitalization of $309.75 million and trades at a low price-to-earnings (P/E) ratio of 7.14, indicating a potentially undervalued stock relative to its near-term earnings growth.
Investors will find it encouraging that NewtekOne has demonstrated exceptional financial performance, with a revenue growth of 54.13% over the past twelve months as of Q2 2024. The company’s gross profit margin stands at an impressive 83.07%, showcasing efficient operations and strong profitability. Moreover, NewtekOne’s commitment to shareholder value is evident through its significant dividend yield of 6.4% and a decade-long track record of consistent dividend payments.
Simplified Analysis: What This Means for You
In layman’s terms, Barry Sloane, the top executive at NewtekOne, has bought more shares in his own company, signaling his belief in its bright future. This kind of insider buying is often a positive indicator for regular investors because it shows that those who know the company best are willing to put their money where their mouth is.
Additionally, NewtekOne has been making smart financial moves, like raising money through a bond offering and selling off a part of the business that wasn't core to its operations. They’ve also brought on a new strategy expert to help guide the company forward. Financially, they are doing well, beating earnings expectations and continuing to pay dividends to shareholders.
If you’re an investor, these are all good signs that the company is on a solid path and might be a good investment opportunity. NewtekOne's strong financial health and strategic decisions could lead to future gains, making it potentially worthwhile for both current and prospective shareholders. For a deeper dive into the company’s health and stock value, tools like InvestingPro can offer detailed analysis and additional tips.
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