NEWTEK Business Services (NEWT) Upgraded to Hold at Zacks Investment Research

Zacks Investment Research upgraded shares of NEWTEK Business Services (NASDAQ:NEWT) from a sell rating to a hold rating in a research report sent 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. “

NEWT has been the topic of several other research reports. ValuEngine raised NEWTEK Business Services from a hold rating to a buy rating in a research report on Saturday, November 10th. BidaskClub raised NEWTEK Business Services from a hold rating to a buy rating in a research report on Thursday, August 2nd. Compass Point set a $19.00 price objective on NEWTEK Business Services and gave the stock a hold rating in a research report on Thursday, August 2nd. Raymond James raised NEWTEK Business Services from an underperform rating to a market perform rating in a research report on Thursday, September 27th. They noted that the move was a valuation call. Finally, Singular Research reissued a not rated rating on shares of NEWTEK Business Services in a research report on Monday, August 27th. Five equities research analysts have rated the stock with a hold rating and one has given a buy rating to the company’s stock. The company has a consensus rating of Hold and an average price target of $20.67.

Shares of NASDAQ:NEWT opened at $20.52 on Tuesday. The company has a market cap of $386.66 million, a P/E ratio of 11.59, a P/E/G ratio of 3.58 and a beta of 1.34. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.38 and a current ratio of 0.38. NEWTEK Business Services has a 12-month low of $16.07 and a 12-month high of $24.24.

NEWTEK Business Services (NASDAQ:NEWT) last announced its earnings results on Wednesday, November 7th. The business services provider reported $0.50 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.47 by $0.03. The company had revenue of $12.39 million for the quarter, compared to analysts’ expectations of $11.85 million. NEWTEK Business Services had a return on equity of 8.51% and a net margin of 102.01%. As a group, research analysts predict that NEWTEK Business Services will post 1.9 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 28th. Shareholders of record on Tuesday, December 18th will be given a $0.50 dividend. The ex-dividend date is Monday, December 17th. This represents a $2.00 annualized dividend and a yield of 9.75%. This is a boost from NEWTEK Business Services’s previous quarterly dividend of $0.48. NEWTEK Business Services’s payout ratio is currently 108.47%.

A number of hedge funds have recently bought and sold shares of NEWT. Millennium Management LLC purchased a new position in NEWTEK Business Services in the first quarter worth $217,000. JPMorgan Chase & Co. raised its stake in shares of NEWTEK Business Services by 197.6% in the third quarter. JPMorgan Chase & Co. now owns 11,503 shares of the business services provider’s stock valued at $241,000 after buying an additional 7,638 shares during the period. LPL Financial LLC raised its stake in shares of NEWTEK Business Services by 69.0% in the first quarter. LPL Financial LLC now owns 19,157 shares of the business services provider’s stock valued at $346,000 after buying an additional 7,820 shares during the period. Virtu Financial LLC bought a new stake in shares of NEWTEK Business Services in the third quarter valued at $378,000. Finally, Captrust Financial Advisors bought a new stake in shares of NEWTEK Business Services in the second quarter valued at $389,000. 21.18% of the stock is currently owned by institutional investors and hedge funds.

About NEWTEK Business Services

Newtek Business Services Corp. is a business development company specializing in providing financial and business services to the small-and medium-sized business market in the United States. The firm also seeks to invest in early stage businesses. The firm seeks to makes both debt and equity investments.

Further Reading: Momentum Indicator: Relative Strength Index

Get a free copy of the Zacks research report on NEWTEK Business Services (NEWT)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Receive News & Ratings for NEWTEK Business Services Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NEWTEK Business Services and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply