Short Interest in Newtek Business Services Corp. (NASDAQ:NEWT) Grows By 24.5%

Newtek Business Services Corp. (NASDAQ:NEWT) saw a large increase in short interest in the month of August. As of August 31st, there was short interest totalling 262,000 shares, an increase of 24.5% from the August 15th total of 210,400 shares. Currently, 1.2% of the company’s shares are short sold. Based on an average daily trading volume, of 299,600 shares, the days-to-cover ratio is currently 0.9 days.

Shares of NASDAQ NEWT opened at $26.48 on Tuesday. The company has a debt-to-equity ratio of 1.09, a quick ratio of 3.24 and a current ratio of 3.24. Newtek Business Services has a 52-week low of $16.24 and a 52-week high of $38.78. The firm has a 50 day moving average price of $30.10 and a 200 day moving average price of $30.43. The stock has a market cap of $597.04 million, a P/E ratio of 9.32 and a beta of 1.12.

Newtek Business Services (NASDAQ:NEWT) last announced its quarterly earnings data on Monday, August 9th. The business services provider reported $1.20 EPS for the quarter, topping the Zacks’ consensus estimate of $0.74 by $0.46. Newtek Business Services had a net margin of 62.29% and a return on equity of 17.46%. Analysts predict that Newtek Business Services will post 3.36 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 30th. Shareholders of record on Thursday, September 30th will be given a dividend of $0.90 per share. This is a positive change from Newtek Business Services’s previous quarterly dividend of $0.70. This represents a $3.60 annualized dividend and a yield of 13.60%. The ex-dividend date of this dividend is Friday, September 17th. Newtek Business Services’s dividend payout ratio is 136.59%.

Several equities research analysts have recently commented on NEWT shares. Raymond James cut shares of Newtek Business Services from a “market perform” rating to an “underperform” rating in a research report on Tuesday, August 3rd. Compass Point cut shares of Newtek Business Services from a “buy” rating to a “neutral” rating and lifted their price target for the stock from $33.00 to $38.00 in a research report on Monday, June 7th. Finally, Zacks Investment Research cut shares of Newtek Business Services from a “buy” rating to a “hold” rating in a research report on Wednesday, July 14th. One equities research analyst has rated the stock with a sell rating and three have assigned a hold rating to the company. According to data from MarketBeat, Newtek Business Services has an average rating of “Hold” and an average target price of $30.00.

Hedge funds and other institutional investors have recently bought and sold shares of the business. Meeder Asset Management Inc. bought a new stake in Newtek Business Services during the second quarter worth $39,000. Advisory Services Network LLC bought a new stake in Newtek Business Services during the second quarter worth $57,000. US Bancorp DE bought a new stake in Newtek Business Services during the first quarter worth $53,000. Marshall Wace North America L.P. bought a new stake in Newtek Business Services during the first quarter worth $67,000. Finally, Wells Fargo & Company MN raised its position in Newtek Business Services by 19.1% during the second quarter. Wells Fargo & Company MN now owns 5,539 shares of the business services provider’s stock worth $193,000 after acquiring an additional 888 shares in the last quarter. 12.45% of the stock is currently owned by hedge funds and other institutional investors.

Newtek Business Services Company Profile

Newtek Business Services Corp. is a non-diversified closed-end management investment company, which engages in the provision of business and financial solutions. It offers loans, payments, payroll and benefits, web solutions, insurance, and technology solutions. The company was founded by Barry Sloane in 1998 and is headquartered in Boca Raton, FL.

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