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NewtekOne CEO Barry Sloane buys $471k in company stock By Investing.com

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According to a recent filing with the U.S. Securities and Exchange Commission, Barry Sloan, Chairman and CEO of NewTech One, Inc. (NASDAQ:NEWT), a national commercial banking company, purchased additional shares of the company’s common stock. The series of transactions, which took place on September 23, 2024, involved Sloan purchasing a total of 41,134 shares at prices ranging from $11.68 to $11.9195, equating to an investment of approximately $471,559.

These transactions represent a vote of confidence by Sloan in NewTech One’s future, as the CEO has expanded his stake in the company. Following the purchases, Sloan now directly owns a total of 1,187,457 shares of NewTech One’s common stock.

While Sloan increased his holdings, the filing also disclosed a gift of 40,134 shares to the CAMCO ONE IRREVOCABLE TRUST, of which Sloan is the donor. The gifted shares are valued at $0, because they represent a true gift, and Sloan disclaimed beneficial ownership of the shares, stating that he had no voting or investment control over the securities in the trust.

These transactions give investors a peek into the inner workings of NewtekOne, and offer perspective on how top executives manage their stakes in the company.

In other recent news, NewtekOne, Inc. recently completed a public offering of 8.625% senior notes, raising $75 million. The notes, due 2029, were underwritten by Morgan Stanley & Co. LLC, Keefe, Bruyette & Woods, Inc., Raymond James & Associates, Inc., and UBS Securities LLC. The company plans to use the proceeds to fund investments, repay debt, and for general corporate purposes. NewtekOne also announced the appointment of Andrew Kaplan as Chief Strategy Officer, bringing his extensive banking and financial services experience to the team. In a major restructuring move, the company sold its subsidiary, Newtek Technology Solutions, Inc., to Paltalk, Inc., in a deal that included a cash payment of $4 million and 4 million shares of newly created Paltalk preferred stock. On the financial front, NewtekOne reported second-quarter 2024 earnings per share of $0.43, beating analyst expectations, and reiterated its full-year EPS forecast of $1.85 to $2.05. These latest developments highlight NewtekOne’s strategic financial maneuvers and commitment to growth.

InvestingPro Insights

Following recent insider trading by Barry Sloan, Chairman and CEO of NewtekOne, Inc. (NASDAQ:NEWT), market participants may gain additional insights by looking at key metrics and expert analysis available through InvestingPro. NewtekOne has a market cap of $309.75 million and the company was trading at a low price-to-earnings ratio of 7.14, suggesting an undervalued stock relative to its near-term earnings growth.

Investors may find it encouraging that NewtekOne has shown strong financial performance with revenue growth of 54.13% over the past 12 months through Q2 2024. The company has also maintained a high gross profit margin of 83.07% over the same period, reflecting efficient operations and strong profitability. Furthermore, the company’s commitment to returning value to shareholders is evident from its high dividend yield of 6.4% and a 10-year track record of paying dividends consistently.

Two InvestingPro tips to consider regarding NewtekOne include its high return on equity, which is attractive to income-focused investors, and the fact that the company has liquid assets in excess of short-term liabilities, indicating a strong liquidity position. For those seeking deeper analysis, InvestingPro offers additional tips, including insights into earnings revisions and profitability forecasts for the year.

For a more comprehensive understanding of NewtekOne’s financial health and stock valuation, interested parties can explore more on InvestingPro, which lists a total of 8 additional tips for the company at https://www.investing.com/pro/NEWT.

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