NEWTEK Business Services (NEWT) Rating Lowered to Strong Sell at Zacks Investment Research

NEWTEK Business Services (NASDAQ:NEWT) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report released on Wednesday.

According to Zacks, “Newtek Capital, Inc. resulted from the combination of the businesses previously owned by BJB Holdings, Inc. and REXX Environmental Corporation and is operating as a holding company for a network of partner companies in a collaborative and coordinated effort to develop successful businesses in a number of existing as well as emerging, technological business lines. “

A number of other equities analysts have also weighed in on NEWT. BidaskClub upgraded NEWTEK Business Services from a “buy” rating to a “strong-buy” rating in a research note on Wednesday, December 27th. ValuEngine lowered NEWTEK Business Services from a “strong-buy” rating to a “buy” rating in a research note on Tuesday, October 31st. Finally, Keefe, Bruyette & Woods reiterated a “hold” rating and set a $18.00 price objective on shares of NEWTEK Business Services in a research note on Friday, October 13th. One research analyst has rated the stock with a sell rating, two have given a hold rating, one has assigned a buy rating and one has issued a strong buy rating to the stock. The stock presently has an average rating of “Hold” and an average target price of $18.50.

Shares of NEWTEK Business Services (NASDAQ:NEWT) traded down $0.19 during mid-day trading on Wednesday, reaching $18.12. The company had a trading volume of 74,729 shares, compared to its average volume of 231,544. The stock has a market cap of $326.60, a price-to-earnings ratio of 11.10, a price-to-earnings-growth ratio of 3.24 and a beta of 1.42. The company has a debt-to-equity ratio of 0.26, a current ratio of 0.42 and a quick ratio of 0.42. NEWTEK Business Services has a one year low of $15.15 and a one year high of $19.40.

In other NEWTEK Business Services news, CEO Barry Sloane purchased 3,000 shares of the business’s stock in a transaction that occurred on Monday, November 6th. The stock was purchased at an average price of $16.60 per share, for a total transaction of $49,800.00. Following the purchase, the chief executive officer now directly owns 1,006,113 shares in the company, valued at $16,701,475.80. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Richard J. Salute purchased 1,468 shares of the business’s stock in a transaction that occurred on Friday, November 10th. The stock was acquired at an average price of $17.07 per share, with a total value of $25,058.76. Following the purchase, the director now owns 7,734 shares in the company, valued at $132,019.38. The disclosure for this purchase can be found here. In the last 90 days, insiders purchased 8,068 shares of company stock valued at $137,966. 6.70% of the stock is owned by company insiders.

Several institutional investors have recently made changes to their positions in NEWT. Stifel Financial Corp lifted its holdings in NEWTEK Business Services by 55.4% in the third quarter. Stifel Financial Corp now owns 47,302 shares of the business services provider’s stock valued at $844,000 after acquiring an additional 16,866 shares during the last quarter. Mckinley Capital Management LLC Delaware raised its stake in NEWTEK Business Services by 11.4% during the 3rd quarter. Mckinley Capital Management LLC Delaware now owns 151,429 shares of the business services provider’s stock valued at $2,699,000 after purchasing an additional 15,548 shares during the last quarter. Commonwealth Equity Services Inc raised its stake in NEWTEK Business Services by 61.2% during the 3rd quarter. Commonwealth Equity Services Inc now owns 25,670 shares of the business services provider’s stock valued at $457,000 after purchasing an additional 9,744 shares during the last quarter. Advisors Asset Management Inc. raised its stake in NEWTEK Business Services by 6.5% during the 3rd quarter. Advisors Asset Management Inc. now owns 183,660 shares of the business services provider’s stock valued at $3,273,000 after purchasing an additional 11,131 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership acquired a new position in NEWTEK Business Services during the 2nd quarter valued at $207,000. Hedge funds and other institutional investors own 20.98% of the company’s stock.

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About NEWTEK Business Services

Newtek Business Services Corp. is an internally managed non-diversified closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation primarily through loans originated by its small business finance platform and its equity investments in certain portfolio companies that it controls.

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