NEWTEK Business Services Corp (NASDAQ:NEWT) declared a quarterly dividend on Wednesday, August 21st, Zacks reports. Shareholders of record on Friday, September 20th will be paid a dividend of 0.58 per share by the business services provider on Monday, September 30th. This represents a $2.32 annualized dividend and a yield of 9.74%. The ex-dividend date of this dividend is Thursday, September 19th. This is a boost from NEWTEK Business Services’s previous quarterly dividend of $0.46.
NEWTEK Business Services has raised its dividend by an average of 9.8% per year over the last three years and has increased its dividend every year for the last 3 years. NEWTEK Business Services has a payout ratio of 122.1% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect NEWTEK Business Services to earn $2.67 per share next year, which means the company should continue to be able to cover its $2.32 annual dividend with an expected future payout ratio of 86.9%.
Shares of NASDAQ:NEWT opened at $23.81 on Wednesday. The business’s 50 day simple moving average is $22.06 and its two-hundred day simple moving average is $21.63. The firm has a market cap of $456.20 million, a P/E ratio of 12.27 and a beta of 1.22. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.34 and a current ratio of 0.34. NEWTEK Business Services has a 52-week low of $15.59 and a 52-week high of $23.99.
NEWTEK Business Services (NASDAQ:NEWT) last announced its quarterly earnings results on Tuesday, August 6th. The business services provider reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.01. The business had revenue of $14.15 million for the quarter, compared to analyst estimates of $14.33 million. NEWTEK Business Services had a return on equity of 9.87% and a net margin of 68.61%. On average, equities analysts forecast that NEWTEK Business Services will post 2.55 earnings per share for the current fiscal year.
NEWT has been the subject of several analyst reports. ValuEngine downgraded NEWTEK Business Services from a “buy” rating to a “hold” rating in a research note on Thursday, July 18th. BidaskClub downgraded NEWTEK Business Services from a “hold” rating to a “sell” rating in a research note on Saturday, August 10th. Finally, Zacks Investment Research raised NEWTEK Business Services from a “hold” rating to a “buy” rating and set a $23.00 price objective for the company in a research note on Saturday, August 10th. One research analyst has rated the stock with a sell rating, two have given a hold rating and three have issued a buy rating to the company’s stock. NEWTEK Business Services currently has a consensus rating of “Hold” and an average target price of $19.17.
In related news, CEO Barry Sloane acquired 2,000 shares of the stock in a transaction dated Monday, August 12th. The stock was purchased at an average cost of $20.94 per share, with a total value of $41,880.00. Following the completion of the purchase, the chief executive officer now directly owns 1,029,906 shares in the company, valued at approximately $21,566,231.64. The purchase was disclosed in a filing with the SEC, which is available through this hyperlink. Over the last three months, insiders bought 2,698 shares of company stock valued at $56,379. Company insiders own 6.70% of the company’s stock.
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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