Newtek Business Services (NASDAQ:NEWT) downgraded by Zacks Investment Research for sale


Newtek Business Services (NASDAQ: NEWT – Get an Assessment) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report released Tuesday, Zacks.com reports.

According to Zacks, “Newtek Capital, Inc. is the result of combining the businesses previously owned by BJB Holdings, Inc. and REXX Environmental Corporation and operates as a holding company for a network of partner companies in a collaborative and coordinated effort to develop successful companies in a number of existing and emerging technology industries.”

Separately, StockNews.com began covering Newtek Business Services in a research report on Thursday, March 31. They issued a “holding” rating for the company.

Shares of NASDAQ:NEWT opened at $26.40 on Tuesday. Newtek Business Services has a fifty-two week minimum of $24.00 and a fifty-two week maximum of $38.78. The company has a 50-day simple moving average of $26.64 and a two-hundred-day simple moving average of $27.89. The company has a debt ratio of 1.04, a quick ratio of 3.80 and a current ratio of 3.80. The company has a market capitalization of $595.24 million, a price-earnings ratio of 7.14 and a beta of 1.09.

Newtek Business Services (NASDAQ:NEWT – Get Rating) last reported results on Wednesday, February 23. The business services provider reported earnings per share of $0.66 for the quarter, beating Zacks’ consensus estimate of $0.61 by $0.05. Newtek Business Services achieved a return on equity of 21.02% and a net margin of 99.71%. The company posted revenue of $24.80 million in the quarter, compared to analyst estimates of $14.29 million. In the same quarter of the previous year, the company achieved EPS of $0.45. As a group, research analysts expect Newtek Business Services to post earnings per share of 2.71 for the current year.

Hedge funds and other institutional investors have recently increased or reduced their stakes in the company. Two Sigma Investments LP increased its position in Newtek Business Services shares by 977.1% during the third quarter. Two Sigma Investments LP now owns 129,427 shares of the business services provider valued at $3,589,000 after buying an additional 117,411 shares in the last quarter. Van ECK Associates Corp increased its stake in Newtek Business Services by 14.8% in the 4th quarter. Van ECK Associates Corp now owns 370,509 shares of the business services provider worth $10,237,000 after acquiring an additional 47,634 shares in the last quarter. Ahrens Investment Partners LLC acquired a new stake in Newtek Business Services in Q4 for a value of approximately $44,000. Mackenzie Financial Corp increased its stake in Newtek Business Services by 16.3% in the third quarter. Mackenzie Financial Corp now owns 44,695 shares of the business services provider worth $1,239,000 after acquiring an additional 6,251 shares last quarter. Finally, Deutsche Bank AG increased its stake in Newtek Business Services by 1,835,600.0% in the 3rd quarter. Deutsche Bank AG now owns 55,071 shares of the business services provider worth $1,527,000 after acquiring an additional 55,068 shares last quarter. 24.23% of the shares are held by hedge funds and other institutional investors.

Newtek Business Services Company Profile (Get an evaluation)

Newtek Business Services Corp. is a business development company specializing in providing financial and business services to the small and medium business market in the United States. The company is also looking to invest in early-stage companies. The company seeks to make debt and equity investments.

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Margie D. Carlisle