NewStar Financial, Inc. (NEWS) Downgraded to “Sell” at Zacks Investment Research
NewStar Financial, Inc. (NASDAQ:NEWS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Saturday.
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. “
NEWS has been the topic of a number of other reports. BidaskClub cut NewStar Financial from a “buy” rating to a “hold” rating in a research note on Saturday, August 12th. ValuEngine cut NewStar Financial from a “buy” rating to a “hold” rating in a research note on Tuesday, August 1st. Finally, Janney Montgomery Scott cut NewStar Financial from a “buy” rating to a “neutral” rating in a research note on Tuesday, October 17th. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and one has given a buy rating to the company’s stock. NewStar Financial has an average rating of “Hold” and an average price target of $11.50.
NewStar Financial (NASDAQ NEWS) traded down $0.21 during trading on Friday, reaching $12.06. The company had a trading volume of 383,918 shares, compared to its average volume of 310,665. The company has a market cap of $508.55 million, a PE ratio of 26.08 and a beta of 2.13. The company has a debt-to-equity ratio of 4.46, a current ratio of 10.67 and a quick ratio of 9.67.
NewStar Financial (NASDAQ:NEWS) last announced its quarterly earnings data on Wednesday, August 2nd. The credit services provider reported $0.10 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.15 by ($0.05). The firm had revenue of $20.19 million for the quarter, compared to analysts’ expectations of $24.32 million. NewStar Financial had a net margin of 7.53% and a return on equity of 3.17%. equities analysts predict that NewStar Financial will post 0.38 EPS for the current fiscal year.
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A number of institutional investors have recently made changes to their positions in NEWS. Oaktop Capital Management II L.P. purchased a new position in NewStar Financial in the 2nd quarter worth approximately $23,701,000. Jacobs Asset Management LLC increased its stake in NewStar Financial by 24.3% in the 2nd quarter. Jacobs Asset Management LLC now owns 1,514,390 shares of the credit services provider’s stock worth $15,901,000 after purchasing an additional 295,719 shares during the period. Skandinaviska Enskilda Banken AB publ purchased a new position in NewStar Financial in the 1st quarter worth approximately $1,030,000. Dimensional Fund Advisors LP increased its stake in NewStar Financial by 3.6% in the 2nd quarter. Dimensional Fund Advisors LP now owns 2,590,665 shares of the credit services provider’s stock worth $27,202,000 after purchasing an additional 90,892 shares during the period. Finally, Northern Trust Corp increased its stake in NewStar Financial by 32.0% in the 2nd quarter. Northern Trust Corp now owns 328,786 shares of the credit services provider’s stock worth $3,452,000 after purchasing an additional 79,612 shares during the period. 73.52% of the stock is currently owned by institutional investors and hedge funds.
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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