NEWTEK Business Services Corp (NASDAQ:NEWT) declared a quarterly dividend on Thursday, May 2nd, Wall Street Journal reports. Stockholders of record on Friday, June 14th will be given a dividend of 0.46 per share by the business services provider on Friday, June 28th. This represents a $1.84 dividend on an annualized basis and a dividend yield of 8.43%. The ex-dividend date is Thursday, June 13th. This is an increase from NEWTEK Business Services’s previous quarterly dividend of $0.40.
NEWTEK Business Services has raised its dividend payment by an average of 9.8% per year over the last three years and has increased its dividend annually for the last 3 consecutive years. NEWTEK Business Services has a payout ratio of 96.8% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Equities analysts expect NEWTEK Business Services to earn $2.25 per share next year, which means the company should continue to be able to cover its $1.84 annual dividend with an expected future payout ratio of 81.8%.
NASDAQ NEWT opened at $21.83 on Friday. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.35 and a current ratio of 0.35. NEWTEK Business Services has a 52-week low of $15.59 and a 52-week high of $24.24. The company has a market cap of $414.89 million, a PE ratio of 11.25 and a beta of 1.39.
NEWTEK Business Services (NASDAQ:NEWT) last announced its earnings results on Wednesday, May 1st. The business services provider reported $0.44 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.41 by $0.03. The company had revenue of $13.76 million during the quarter. NEWTEK Business Services had a net margin of 70.19% and a return on equity of 8.99%. On average, equities analysts predict that NEWTEK Business Services will post 2.25 earnings per share for the current year.
In related news, CEO Barry Sloane acquired 4,000 shares of the stock in a transaction dated Wednesday, March 20th. The stock was acquired at an average cost of $19.70 per share, for a total transaction of $78,800.00. Following the completion of the purchase, the chief executive officer now owns 1,023,708 shares of the company’s stock, valued at approximately $20,167,047.60. The purchase was disclosed in a document filed with the SEC, which is available through this link. Insiders have bought 4,782 shares of company stock valued at $94,898 over the last quarter. Insiders own 6.30% of the company’s stock.
NEWT has been the subject of several recent analyst reports. Compass Point initiated coverage on shares of NEWTEK Business Services in a research note on Friday, March 8th. They issued a “neutral” rating and a $19.00 target price for the company. ValuEngine upgraded shares of NEWTEK Business Services from a “hold” rating to a “buy” rating in a research note on Wednesday, May 1st. TheStreet downgraded shares of NEWTEK Business Services from a “b” rating to a “c+” rating in a research note on Monday, March 11th. BidaskClub upgraded shares of NEWTEK Business Services from a “sell” rating to a “hold” rating in a research note on Wednesday, April 3rd. Finally, Zacks Investment Research upgraded shares of NEWTEK Business Services from a “hold” rating to a “buy” rating and set a $23.00 target price for the company in a research note on Thursday, April 4th. Two analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus target price of $19.17.
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About NEWTEK Business Services
Newtek Business Services Corp. is a business development company specializing in providing financial and business services to the small-and medium-sized business market in the United States. The firm also seeks to invest in early stage businesses. The firm seeks to makes both debt and equity investments.
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