NEWTEK Business Services (NEWT) Shares Down 6.8%

NEWTEK Business Services Corp (NASDAQ:NEWT) traded down 6.8% during trading on Thursday . The company traded as low as $17.61 and last traded at $17.98. 1,019,320 shares traded hands during trading, an increase of 743% from the average session volume of 120,921 shares. The stock had previously closed at $19.30.

A number of equities research analysts recently commented on the stock. Zacks Investment Research raised shares of NEWTEK Business Services from a “hold” rating to a “buy” rating and set a $22.00 target price for the company in a research report on Thursday, June 28th. BidaskClub cut shares of NEWTEK Business Services from a “strong-buy” rating to a “buy” rating in a research report on Saturday, June 16th. Compass Point set a $19.00 target price on shares of NEWTEK Business Services and gave the company a “hold” rating in a research report on Thursday, August 2nd. Finally, Raymond James raised shares of 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. Five investment analysts have rated the stock with a hold rating and one has issued a buy rating to the company’s stock. The company currently has an average rating of “Hold” and an average target price of $20.67.

The firm has a market capitalization of $393.51 million, a PE ratio of 10.68, a price-to-earnings-growth ratio of 3.67 and a beta of 1.30. The company has a current ratio of 0.31, a quick ratio of 0.31 and a debt-to-equity ratio of 0.28.

NEWTEK Business Services (NASDAQ:NEWT) last posted its quarterly earnings results on Wednesday, August 1st. The business services provider reported $0.44 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.42 by $0.02. The business had revenue of $11.40 million during the quarter, compared to analysts’ expectations of $11.47 million. NEWTEK Business Services had a net margin of 105.34% and a return on equity of 8.86%. Analysts predict that NEWTEK Business Services Corp will post 1.9 earnings per share for the current fiscal year.

The business also recently declared a quarterly dividend, which was paid on Friday, September 28th. Shareholders of record on Monday, September 17th were issued a $0.48 dividend. The ex-dividend date of this dividend was Friday, September 14th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 10.15%. This is a boost from NEWTEK Business Services’s previous quarterly dividend of $0.42. NEWTEK Business Services’s dividend payout ratio (DPR) is currently 108.47%.

Several hedge funds and other institutional investors have recently bought and sold shares of NEWT. Cambridge Investment Research Advisors Inc. purchased a new position in shares of NEWTEK Business Services in the first quarter worth $182,000. Millennium Management LLC purchased a new position in shares of NEWTEK Business Services in the first quarter worth $217,000. LPL Financial LLC raised its holdings in shares of NEWTEK Business Services by 69.0% during the first quarter. LPL Financial LLC now owns 19,157 shares of the business services provider’s stock worth $346,000 after purchasing an additional 7,820 shares during the last quarter. Captrust Financial Advisors purchased a new position in shares of NEWTEK Business Services during the second quarter worth $389,000. Finally, GSA Capital Partners LLP purchased a new position in shares of NEWTEK Business Services during the second quarter worth $430,000. 21.16% of the stock is owned by institutional investors and hedge funds.

About NEWTEK Business Services (NASDAQ:NEWT)

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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