In a recent transaction, Salvatore Francis Mulia, a director at NewtekOne, Inc. (NASDAQ:NEWT), sold 750 shares of the company's common stock. The sale, which took place on April 22, 2024, was executed at a price of $10.87 per share, resulting in a total value of $8,152.50.
This sale was conducted under a pre-arranged 10b5-1 trading plan, which was adopted by Mulia on June 20, 2023. A 10b5-1 plan allows company insiders to set up a predetermined schedule for buying or selling securities and is typically used to avoid accusations of insider trading.
Following the transaction, Mulia's holdings in NewtekOne have decreased, yet he still owns a total of 46,462 shares directly. Transactions like this are closely monitored by investors as they can provide insights into an insider's perspective on the company's current valuation and future prospects.
NewtekOne, Inc. operates in the national commercial banks sector, providing financial services to its clients. The sale by Director Mulia is a notable event for shareholders and potential investors, as it could be indicative of the director's view on the stock's current market value. However, it is also important to consider that the sale might be part of Mulia's personal financial planning and not necessarily reflect his outlook on the company's future performance.
InvestingPro Insights
As investors digest the recent insider sale at NewtekOne, Inc. (NASDAQ:NEWT), it's crucial to look at the company's financial health and market performance through an analytical lens. With real-time metrics provided by InvestingPro, we can gain a clearer picture of NewtekOne's current position in the market.
InvestingPro Data shows that NewtekOne has a market capitalization of approximately $270.56 million, illustrating its size in the financial sector. The company's P/E ratio stands at a modest 5.8, suggesting that the stock might be undervalued relative to its earnings. This is further supported by a PEG ratio of 0.15 for the last twelve months as of Q4 2023, indicating potential for growth when weighed against the P/E ratio. Moreover, with a significant revenue growth of 106.2% over the last twelve months as of Q4 2023, NewtekOne has demonstrated its ability to increase its earnings substantially.
InvestingPro Tips highlight several key points that investors should consider. NewtekOne is noted to be quickly burning through cash, which could be a warning sign for its financial sustainability. Additionally, four analysts have revised their earnings downwards for the upcoming period, potentially flagging concerns about future profitability. On a positive note, the company has been able to maintain dividend payments for 10 consecutive years, which could be attractive for income-focused investors. Furthermore, the company's valuation implies a poor free cash flow yield, which investors may want to investigate further.
For those looking to dive deeper into NewtekOne's financials and future prospects, InvestingPro offers additional tips, including insights on dividend yield and analyst predictions. Currently, there are 9 more InvestingPro Tips available for NewtekOne at https://www.investing.com/pro/NEWT. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a comprehensive suite of investment tools and analytics.
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