On September 7, 2023, Barry Sloane, Chairman & CEO of NewtekOne Inc (NEWT, Financial), purchased 2,000 shares of the company, further solidifying his confidence in the firm's future prospects. This recent acquisition is part of a larger trend, as over the past year, the insider has purchased a total of 14,000 shares and sold none.
Barry Sloane is not just the Chairman and CEO of NewtekOne Inc, but also a significant figure in the company's growth and development. His leadership has been instrumental in steering the company towards its current position in the market. NewtekOne Inc is a business development company that specializes in providing financial and business services to the small and medium-sized business market. The company's services include loans, payment processing, and web hosting, among others.
The insider's recent buying activity is a positive sign for investors, as it indicates a strong belief in the company's future performance. Over the past year, there have been 15 insider buys and no insider sells, suggesting a bullish sentiment among the company's insiders.
The relationship between insider buying and selling activities and the stock price is often considered a reliable indicator of a company's future performance. In the case of NewtekOne Inc, the consistent insider buying activity could be interpreted as a positive sign, potentially indicating an undervalued stock.
On the day of the insider's recent buy, shares of NewtekOne Inc were trading at $17.27, giving the company a market cap of $423.6 million. The price-earnings ratio stands at 15.61, which is higher than both the industry median of 8.22 and the company's historical median price-earnings ratio. This could suggest that the stock is overvalued, but other factors need to be considered.
The GuruFocus Value of NewtekOne Inc is $20.89, resulting in a price-to-GF-Value ratio of 0.83. This suggests that the stock is modestly undervalued, aligning with the insider's buying activity.
The GF Value is a proprietary estimate of intrinsic value developed by GuruFocus, based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts. In the case of NewtekOne Inc, these factors seem to suggest that the stock is undervalued, providing a potential opportunity for investors.
In conclusion, the insider's consistent buying activity, coupled with the stock's modest undervaluation according to the GF Value, suggests a positive outlook for NewtekOne Inc. However, as always, investors should conduct their own research and consider multiple factors before making investment decisions.
