In a remarkable display of resilience, Newtek Business Services Corp. (NASDAQ:NEWT) stock has achieved a 52-week high, reaching a price level of $15.27. This peak comes as a significant milestone for the company, reflecting a robust 1-year change of 12.07%. Investors have shown increased confidence in Newtek's business model and growth prospects, propelling the stock to this new height. The company's performance, particularly in the context of the broader market trends, underscores the positive sentiment surrounding its strategic initiatives and future potential.
In other recent news, Newtek Business Services Corp reported robust Q3 results, with earnings per share (EPS) of $0.45, surpassing the consensus estimate of $0.43. The company also confirmed its EPS guidance for 2024 to be between $1.85 and $2.05, and introduced its EPS guidance for 2025, projecting a range of $2.00 to $2.25. In response to these developments, Piper Sandler adjusted its outlook on Newtek shares, increasing the price target to $15.00 from the previous $13.00 while maintaining a Neutral rating.
Newtek's management expressed confidence in achieving the upper end of the 2024 guidance, leading Piper Sandler to revise its core EPS estimates for 2024 and 2025 upwards. The company's solid financial health was also reflected in key metrics such as a return on average assets of 2.8% and a net interest margin of 5.29%. Newtek recorded a 12% growth in deposits and a 17% increase in loans, further demonstrating its strong financial position.
Additionally, Newtek is in the process of merging its technology unit, NTS, into Paltalk, expected to be completed in Q1 2024. The company projects a diluted EPS for 2025 in the range of $2.00 to $2.25, and forecasts a $19.6 million figure for its payment processing segment in 2025. These recent developments indicate a robust financial position for Newtek and reflect the firm's positive view on the company's earnings potential and financial projections for the coming years.
InvestingPro Insights
Newtek Business Services Corp.'s recent achievement of a 52-week high is further supported by several key metrics and insights from InvestingPro. The company's stock has demonstrated significant momentum, with a 16.98% price total return over the last three months and a 9.06% return in just the past week. This aligns with the InvestingPro Tip that NEWT is "Trading near 52-week high," currently at 99.08% of its 52-week peak.
Financially, NEWT appears to be in a strong position. The company boasts a P/E ratio of 8.47, which is relatively low compared to its growth prospects. This is reinforced by an InvestingPro Tip indicating that NEWT is "Trading at a low P/E ratio relative to near-term earnings growth." Additionally, with a dividend yield of 5.4% and a track record of maintaining dividend payments for 10 consecutive years, NEWT offers an attractive proposition for income-focused investors.
For those seeking more comprehensive analysis, InvestingPro offers 8 additional tips that could provide deeper insights into NEWT's financial health and market position. These additional tips could be particularly valuable in understanding the full scope of Newtek's recent performance and future potential.
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