NewtekOne CEO Barry Sloane Purchases $471K in Company Stock

Barry Sloane, the Chairman and CEO of NewtekOne, Inc., has increased his ownership in the company by purchasing additional shares of its common stock, as revealed in a recent filing with the SEC. On September 23, 2024, Sloane acquired a total of 41,134 shares at prices between $11.68 and $11.9195, marking an investment of about $471,559.

This move reflects Sloane’s confidence in NewtekOne’s future, as he enhances his stake in the company. Following these transactions, he now holds a total of 1,187,457 shares of NewtekOne’s common stock.

In addition to buying shares, the filing disclosed that Sloane gifted 40,134 shares to the CAMCO ONE IRREVOCABLE TRUST, of which he is the grantor. The gifted shares hold a nominal value of $0, as they are classified as a bona fide gift. Sloane has also stated that he disclaims any beneficial ownership of these shares, meaning he does not have voting or investment control over them.

These insider activities provide valuable insights into the management’s confidence in NewtekOne and its direction.

In other corporate updates, NewtekOne recently completed a public offering of 8.625% Fixed Rate Senior Notes, raising $75 million. The notes, which are due in 2029, were underwritten by notable financial institutions. The proceeds from this offering are intended for investment funding, debt repayment, and other general corporate needs. Additionally, the company appointed Andrew Kaplan as its Chief Strategy Officer, a move aimed at bolstering the management team’s expertise in the banking and financial services sectors. In a strategic realignment, NewtekOne divested its subsidiary, Newtek Technology Solutions, Inc., to Paltalk, Inc. in exchange for $4 million in cash and 4 million shares of Paltalk’s new preferred stock. Financially, NewtekOne reported earnings per share of $0.43 for Q2 2024, exceeding analysts’ forecasts, and reaffirmed its annual EPS guidance of $1.85 to $2.05. These developments highlight the company’s proactive approach to financial management and growth.

Market participants may find interest in NewtekOne’s recent insider transactions, especially considering its market capitalization of approximately $309.75 million and a relatively low price-to-earnings (P/E) ratio of 7.14, indicating the stock might be undervalued relative to its earnings growth potential. Furthermore, with a revenue growth rate of 54.13% over the past year and a gross profit margin of 83.07%, NewtekOne has demonstrated strong financial performance.

Investors may also appreciate the company’s attractive dividend yield of 6.4% and its consistent history of dividend payments over the last decade. High shareholder yield and a solid liquidity position, with liquid assets surpassing short-term obligations, add to its appeal for income-focused investors.

Overall, these insights provide a clearer picture of NewtekOne’s financial health and strategic direction, promoting an informed investment approach.