NEWTEK Business Services Corp (NASDAQ:NEWT) declared a quarterly dividend on Thursday, October 10th, Zacks reports. Stockholders of record on Monday, December 16th will be given a dividend of 0.71 per share by the business services provider on Monday, December 30th. This represents a $2.84 annualized dividend and a dividend yield of 13.25%. The ex-dividend date of this dividend is Friday, December 13th. This is an increase from NEWTEK Business Services’s previous quarterly dividend of $0.58.
NEWTEK Business Services has raised its dividend by an average of 9.8% annually over the last three years and has raised its dividend annually for the last 3 consecutive years. NEWTEK Business Services has a payout ratio of 149.5% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect NEWTEK Business Services to earn $2.35 per share next year, which means the company may not be able to cover its $2.84 annual dividend with an expected future payout ratio of 120.9%.
NEWT stock opened at $21.43 on Friday. The stock has a 50-day moving average price of $22.60 and a 200-day moving average price of $21.91. NEWTEK Business Services has a 1-year low of $15.59 and a 1-year high of $23.99. The company has a current ratio of 0.34, a quick ratio of 0.34 and a debt-to-equity ratio of 0.34. The firm has a market cap of $404.32 million, a PE ratio of 14.07 and a beta of 1.22.
NEWTEK Business Services (NASDAQ:NEWT) last posted its quarterly earnings data on Tuesday, August 6th. The business services provider reported $0.57 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.56 by $0.01. NEWTEK Business Services had a return on equity of 9.87% and a net margin of 68.61%. The firm had revenue of $14.15 million during the quarter, compared to analyst estimates of $14.33 million. On average, analysts forecast that NEWTEK Business Services will post 2.26 earnings per share for the current year.
NEWT has been the subject of a number of analyst reports. Zacks Investment Research downgraded NEWTEK Business Services from a “strong-buy” rating to a “hold” rating in a research note on Wednesday. BidaskClub downgraded NEWTEK Business Services from a “hold” rating to a “sell” rating in a research note on Thursday. Finally, ValuEngine upgraded NEWTEK Business Services from a “strong sell” rating to a “sell” rating in a research note on Thursday. Two investment analysts have rated the stock with a sell rating, two have given a hold rating and two have issued a buy rating to the stock. The company has an average rating of “Hold” and a consensus price target of $19.17.
In related news, CEO Barry Sloane purchased 2,000 shares of the business’s stock in a transaction on Monday, August 12th. The stock was acquired at an average price of $20.94 per share, for a total transaction of $41,880.00. Following the purchase, the chief executive officer now owns 1,029,906 shares of the company’s stock, valued at $21,566,231.64. The transaction was disclosed in a filing with the SEC, which is available at this link. Insiders have acquired a total of 2,698 shares of company stock valued at $56,379 in the last quarter. Company insiders own 6.70% of the company’s stock.
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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