Salvatore Mulia, a director of NewtekOne, Inc. (NASDAQ:NEWT), has sold 750 shares of common stock in the company, according to a recent SEC filing. The transaction, which took place on March 21, 2024, was executed at a price of $10.71 per share, resulting in a total sale amount of over $8,000.
The sale was conducted under a pre-arranged 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule for buying or selling stocks at a time when they are not in possession of material, non-public information. This type of plan is designed to prevent insider trading accusations by allowing insiders to trade shares at times when they might otherwise be prevented from doing so due to insider trading laws.
Following the transaction, Mulia's direct holdings in NewtekOne have decreased, but he still owns a total of 47,212 shares. NewtekOne, Inc., which has recently undergone a name change from Newtek Business (NASDAQ:NEWT) Services Corp., operates within the national commercial banks sector and is headquartered in Boca Raton, Florida.
Investors often monitor insider sales and purchases as they can provide insights into an insider's view of the company's value. However, it's important to note that such transactions do not necessarily indicate a change in company fundamentals, and they can be motivated by a range of personal financial considerations.
The sale by Mulia represents a continuation of his investment activities as a director of the company, and investors will be watching to see how this aligns with the company's performance in the coming quarters.
InvestingPro Insights
As NewtekOne, Inc. (NASDAQ:NEWT) faces changes within its insider shareholding structure, investors are keeping a keen eye on the financial health and market performance of the company. According to InvestingPro data, NewtekOne currently holds a market capitalization of $255.68 million, with an attractive P/E ratio of 6.06, suggesting the stock may be undervalued relative to its near-term earnings growth. Moreover, the company's PEG ratio stands at a low 0.23, potentially indicating an undervalued stock in terms of its earnings growth rate.
An InvestingPro Tip highlights that NewtekOne is trading at a low earnings multiple, which could be a signal to value investors looking for potential bargains in the stock market. Additionally, the company has a track record of rewarding its shareholders, maintaining dividend payments for 10 consecutive years, with a current dividend yield of 7.14%. This may appeal to income-focused investors seeking steady dividend payouts.
Despite recent price declines, with the stock trading near its 52-week low and experiencing a significant drop over the last three months, analysts predict the company will be profitable this year. This optimism is supported by the company's solid performance over the last twelve months, with a robust gross profit margin of 83.68% and an operating income margin of 46.47%.
For those interested in further insights, there are more InvestingPro Tips available, offering an in-depth analysis of NewtekOne's financials and market position. To gain access to these valuable tips and make informed investment decisions, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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