NEWTEK Business Services (NASDAQ:NEWT) Lifted to “Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of NEWTEK Business Services (NASDAQ:NEWT) from a hold rating to a buy rating in a report issued on Saturday morning, Zacks.com reports. Zacks Investment Research currently has $23.00 target price on the business services provider’s stock.

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 analysts also recently issued reports on NEWT. TheStreet raised NEWTEK Business Services from a c+ rating to a b rating in a research note on Wednesday, May 15th. BidaskClub downgraded NEWTEK Business Services from a hold rating to a sell rating in a research note on Saturday. Finally, ValuEngine downgraded NEWTEK Business Services from a buy rating to a hold rating in a research note on Thursday, July 18th. One investment analyst has rated the stock with a sell rating, two have given a hold rating and three have issued a buy rating to the stock. The company has an average rating of Hold and an average price target of $19.17.

NEWT opened at $21.20 on Friday. The firm has a 50-day moving average price of $21.91. NEWTEK Business Services has a 1 year low of $15.59 and a 1 year high of $24.24. The firm has a market cap of $406.28 million, a P/E ratio of 10.93 and a beta of 1.29. The company has a debt-to-equity ratio of 0.34, a current ratio of 0.35 and a quick ratio of 0.35.

NEWTEK Business Services (NASDAQ:NEWT) last released its quarterly earnings results on Tuesday, August 6th. The business services provider reported $0.57 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.56 by $0.01. NEWTEK Business Services had a return on equity of 9.90% and a net margin of 68.61%. The firm had revenue of $14.15 million for the quarter, compared to the consensus estimate of $14.33 million. Research analysts expect that NEWTEK Business Services will post 2.55 EPS for the current year.

In related news, CEO Barry Sloane bought 2,000 shares of the stock in a transaction that occurred on Monday, August 12th. The shares were acquired at an average price of $20.94 per share, with a total value of $41,880.00. Following the completion of the transaction, the chief executive officer now owns 1,029,906 shares in the company, valued at $21,566,231.64. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. In the last ninety days, insiders purchased 2,448 shares of company stock worth $51,226. 6.70% of the stock is owned by company insiders.

Several large investors have recently added to or reduced their stakes in the stock. Private Portfolio Partners LLC increased its position in shares of NEWTEK Business Services by 1.6% in the first quarter. Private Portfolio Partners LLC now owns 29,599 shares of the business services provider’s stock valued at $581,000 after acquiring an additional 479 shares during the last quarter. Chubb Ltd increased its position in shares of NEWTEK Business Services by 3.2% in the first quarter. Chubb Ltd now owns 17,308 shares of the business services provider’s stock valued at $339,000 after acquiring an additional 543 shares during the last quarter. Advisor Group Inc. increased its position in shares of NEWTEK Business Services by 64.3% in the second quarter. Advisor Group Inc. now owns 4,494 shares of the business services provider’s stock valued at $104,000 after acquiring an additional 1,759 shares during the last quarter. Commonwealth Equity Services LLC increased its position in shares of NEWTEK Business Services by 4.9% in the second quarter. Commonwealth Equity Services LLC now owns 58,629 shares of the business services provider’s stock valued at $1,348,000 after acquiring an additional 2,736 shares during the last quarter. Finally, C M Bidwell & Associates Ltd. acquired a new stake in shares of NEWTEK Business Services in the second quarter valued at about $76,000. 18.49% 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.

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