Newtek Business Services Corp. (NASDAQ:NEWT) shares traded lower over the last trading session, losing -3.25% on 06/26/20. The shares fell to a low of $17.39 before closing at $17.84. Intraday shares traded counted 0.2 million, which was 21.77% higher than its 30-day average trading volume of 253.22K. NEWT’s previous close was $18.44 while the outstanding shares total 20.74M. The firm has a beta of 1.36, a 12-month trailing P/E ratio of 13.77, and a growth ratio of 4.59. The stock’s Relative Strength Index (RSI) is 53.58, with weekly volatility at 4.14% and ATR at 0.93. The NEWT stock’s 52-week price range has touched low of $7.59 and a $23.99 high.
Investors have identified the Asset Management company Newtek Business Services Corp. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $385.52 million, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Newtek Business Services Corp. (NEWT) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 72208000 million total, with 60703000 million as their total liabilities.
NEWT were able to record 29.44 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 37.32 million. In cash movements, the company had a total of 29.44 million as operating cash flow.
Potential earnings growth for Newtek Business Services Corp. (NEWT)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Newtek Business Services Corp. recorded a total of 15.8 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 12.9% coming in sequential stages and their sales for the third quarter increasing by 2.79%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 15.8 million trying to sell their products during the last quarter, with the result yielding a gross income of 16.08 million. This allows shareholders to hold on to 20.74M with the revenue now reading -0.35 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.43 cents a share).
Having a look at the company’s valuation, the company is expected to record 2.33 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on NEWT sounds very interesting.
Is the stock of NEWT attractive?
In related news, Chairman & CEO, SLOANE BARRY bought 1,000 shares of the company’s stock in a transaction that recorded on May 18. The purchase was performed at an average price of 15.28, for a total value of 15,280. As the purchase deal closes, the Director, SALUTE RICHARD J now bought 500 shares of the company’s stock, valued at 7,175. Also, Chairman & CEO, SLOANE BARRY bought 1,000 shares of the company’s stock in a deal that was recorded on May 14. The shares were cost at an average price of 13.00 per share, with a total market value of 13,000. Following this completion of disposal, the Director, Zink Gregory L now holds 500 shares of the company’s stock, valued at 6,955. In the last 6 months, insiders have changed their ownership in shares of company stock by 5.80%.
1 out of 3 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Newtek Business Services Corp.. 0 analysts has assigned a Sell rating on the NEWT stock. The 12-month mean consensus price target for the company’s shares has been set at $16.50.