Zacks Investment Research Upgrades NewStar Financial, Inc. (NEWS) to “Hold”
NewStar Financial, Inc. (NASDAQ:NEWS) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “NEWSTAR FINANCIAL INC is a specialized commercial finance company focused on meeting the complex financing needs of companies and private investors in the middle markets. The Company specializes in providing senior secured debt financing for the acquisition or recapitalization of mid-sized companies and commercial real estate. NewStar originates loans directly through a team of experienced, senior bankers organized around key industry and market segments. The Company targets ‘hold’ positions of up to $20 million and selectively underwrites or arranges larger transactions for syndication to other lenders. NewStar is headquartered in Boston, MA and has regional offices in Darien, CT, Chicago, IL, San Diego, CA, and Charleston, SC. “
A number of other brokerages have also weighed in on NEWS. TheStreet upgraded shares of NewStar Financial from a “d” rating to a “c-” rating in a report on Monday, April 3rd. Keefe, Bruyette & Woods set a $11.00 price objective on shares of NewStar Financial and gave the company a “hold” rating in a report on Monday, April 10th. Finally, ValuEngine upgraded shares of NewStar Financial from a “hold” rating to a “buy” rating in a report on Saturday, May 20th.
NewStar Financial (NASDAQ:NEWS) traded up 3.86% during trading on Wednesday, reaching $10.75. 65,861 shares of the company were exchanged. The stock has a market capitalization of $452.28 million, a P/E ratio of 19.20 and a beta of 2.02. NewStar Financial has a 1-year low of $8.03 and a 1-year high of $11.37. The company’s 50-day moving average price is $9.84 and its 200-day moving average price is $9.85.
NewStar Financial (NASDAQ:NEWS) last announced its quarterly earnings data on Wednesday, May 3rd. The credit services provider reported $0.03 earnings per share for the quarter, missing analysts’ consensus estimates of $0.19 by $0.16. NewStar Financial had a net margin of 8.98% and a return on equity of 3.91%. The company had revenue of $20.14 million for the quarter, compared to the consensus estimate of $26.27 million. On average, equities analysts forecast that NewStar Financial will post $0.54 EPS for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 15th. Investors of record on Tuesday, May 30th were issued a dividend of $0.02 per share. The ex-dividend date was Thursday, May 25th. This represents a $0.08 dividend on an annualized basis and a yield of 0.74%. NewStar Financial’s payout ratio is 14.29%.
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A number of large investors have recently made changes to their positions in NEWS. Dimensional Fund Advisors LP raised its stake in shares of NewStar Financial by 0.3% in the first quarter. Dimensional Fund Advisors LP now owns 2,499,773 shares of the credit services provider’s stock worth $26,448,000 after buying an additional 8,385 shares during the last quarter. Second Curve Capital LLC raised its stake in NewStar Financial by 11.2% in the first quarter. Second Curve Capital LLC now owns 1,336,049 shares of the credit services provider’s stock valued at $14,135,000 after buying an additional 135,000 shares in the last quarter. State Street Corp raised its stake in NewStar Financial by 2.1% in the fourth quarter. State Street Corp now owns 429,588 shares of the credit services provider’s stock valued at $3,974,000 after buying an additional 8,902 shares in the last quarter. Kestrel Investment Management Corp acquired a new stake in NewStar Financial during the first quarter valued at approximately $3,092,000. Finally, Renaissance Technologies LLC acquired a new stake in NewStar Financial during the fourth quarter valued at approximately $1,995,000. Institutional investors own 73.57% of the company’s stock.
About NewStar Financial
NewStar Financial, Inc (NewStar) is a commercial finance company. The Company operates through two segments: Commercial Lending and Asset Management. The Commercial Lending segment represents its direct lending activities, which are focused on providing a range of flexible senior secured debt options to mid-sized companies.
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