Newtek Business Services (NASDAQ:NEWT) Rating Lowered to Sell at Zacks Investment Research

Newtek Business Services (NASDAQ:NEWTGet Rating) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Wednesday, Zacks.com reports.

According to Zacks, “Newtek Capital, Inc. resulted from the combination of the businesses previously owned by BJB Holdings, Inc. and REXX Environmental Corporation and is operating as a holding company for a network of partner companies in a collaborative and coordinated effort to develop successful businesses in a number of existing as well as emerging, technological business lines. “

Separately, StockNews.com assumed coverage on shares of Newtek Business Services in a research report on Thursday, March 31st. They set a “hold” rating on the stock.

Shares of NASDAQ NEWT opened at $25.01 on Wednesday. The firm has a market cap of $604.37 million, a price-to-earnings ratio of 9.09 and a beta of 1.07. The company has a quick ratio of 3.80, a current ratio of 3.80 and a debt-to-equity ratio of 1.04. Newtek Business Services has a 52-week low of $24.00 and a 52-week high of $38.78. The business’s 50 day moving average is $26.30 and its two-hundred day moving average is $27.64.

Newtek Business Services (NASDAQ:NEWTGet Rating) last issued its quarterly earnings data on Wednesday, February 23rd. The business services provider reported $0.66 earnings per share for the quarter, beating analysts’ consensus estimates of $0.61 by $0.05. Newtek Business Services had a return on equity of 19.19% and a net margin of 93.16%. The business had revenue of $24.80 million during the quarter, compared to analysts’ expectations of $14.29 million. During the same period in the previous year, the firm posted $0.45 earnings per share. Analysts anticipate that Newtek Business Services will post 2.71 EPS for the current fiscal year.

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Royce & Associates LP acquired a new stake in Newtek Business Services in the 4th quarter valued at about $24,435,000. Invesco Ltd. raised its holdings in Newtek Business Services by 8.4% in the fourth quarter. Invesco Ltd. now owns 717,302 shares of the business services provider’s stock valued at $19,819,000 after acquiring an additional 55,315 shares in the last quarter. Van ECK Associates Corp lifted its stake in Newtek Business Services by 53.2% in the first quarter. Van ECK Associates Corp now owns 567,602 shares of the business services provider’s stock worth $15,155,000 after acquiring an additional 197,093 shares during the last quarter. Marshall Wace LLP grew its holdings in Newtek Business Services by 1,542.8% during the 4th quarter. Marshall Wace LLP now owns 309,625 shares of the business services provider’s stock worth $8,555,000 after acquiring an additional 290,778 shares in the last quarter. Finally, Two Sigma Investments LP increased its position in shares of Newtek Business Services by 977.1% in the 3rd quarter. Two Sigma Investments LP now owns 129,427 shares of the business services provider’s stock valued at $3,589,000 after purchasing an additional 117,411 shares during the last quarter. 25.22% of the stock is owned by hedge funds and other institutional investors.

About Newtek Business Services (Get Rating)

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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