NEWTEK Business Services (NEWT) Declares $0.18 Dividend

NEWTEK Business Services said on February 27, 2023 that its board of directors declared a regular
quarterly dividend of $0.18 per share ($0.72 annualized).
Shareholders of record as of April 4, 2023
will receive the payment on April 14, 2023.
Previously, the company paid $0.70 per share.

At the current share price of $15.31 / share,
the stock’s dividend yield is 4.70{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}.

Looking back five years and taking a sample every week, the average dividend yield has been
10.62{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550},
the lowest has been 5.50{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550},
and the highest has been 22.07{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}.
The standard deviation of yields is 3.21 (n=236).

The current dividend yield is
1.84 standard deviations

below
the historical average.

Additionally, the company’s dividend payout ratio is 2.08.
The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0)
means 100{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of the company’s income is paid in a dividend.
A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a
healthy situation.
Companies with few growth prospects are expected to pay out most of their income in dividends, which typically
means a payout ratio between 0.5 and 1.0.
Companies with good growth prospects are expected to retain some earnings in order to invest
in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.28{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550},
demonstrating that it has increased its dividend over time.

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Analyst Price Forecast Suggests 16.59{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} Upside

As of March 1, 2023,
the average one-year price target for NEWTEK Business Services is $17.85.
The forecasts range from a low of $16.16 to a high of $19.95.
The average price target represents an increase of 16.59{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} from its latest reported closing price of $15.31.

The projected annual revenue for NEWTEK Business Services
is $121MM, an increase of 40.45{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}.

The projected annual EPS
is $3.03, an increase of 126.07{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}.

What is the Fund Sentiment?

There are 83 funds or institutions reporting positions in NEWTEK Business Services.

This is a decrease
of
3
owner(s) or 3.49{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} in the last quarter.

Average portfolio weight of all funds dedicated to NEWT is 0.12{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550},
an increase
of 8.37{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}.

Total shares owned by institutions increased
in the last three months by 20.20{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to 5,504K shares.

The put/call ratio of NEWT is 1.27, indicating a

bearish
outlook.

What are large shareholders doing?

Royce & Associates
holds 1,021K shares

representing 4.18{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} ownership of the company.

In it’s prior filing, the firm reported owning 446K shares, representing
an increase
of 56.28{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}.

The firm

increased

its portfolio allocation in NEWT by 110.48{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} over the last quarter.

Invesco
holds 684K shares

representing 2.80{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} ownership of the company.

In it’s prior filing, the firm reported owning 682K shares, representing
an increase
of 0.28{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}.

The firm

decreased

its portfolio allocation in NEWT by 99.99{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} over the last quarter.

KBWD – Invesco KBW High Dividend Yield Financial ETF
holds 665K shares

representing 2.72{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} ownership of the company.

In it’s prior filing, the firm reported owning 679K shares, representing
a decrease
of 2.13{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}.

The firm

decreased

its portfolio allocation in NEWT by 3.48{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} over the last quarter.

RYTRX – Royce Total Return Fund Investment Class
holds 443K shares

representing 1.81{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} ownership of the company.

In it’s prior filing, the firm reported owning 0K shares, representing
an increase
of 100.00{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}.

Susquehanna International Group, Llp
holds 400K shares

representing 1.64{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} ownership of the company.

In it’s prior filing, the firm reported owning 0K shares, representing
an increase
of 100.00{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}.

Newtek Business Services Background Information
(This description is provided by the company.)

Newtek Business Services Corp., Your Business Solutions Company®, is an internally managed BDC, which along with its controlled portfolio companies, provides a wide range of business and financial solutions under the Newtek® brand to the small- and medium-sized business (‘SMB’) market. Since 1999, Newtek has provided state-of-the-art, cost-efficient products and services and efficient business strategies to SMB relationships across all 50 states to help them grow their sales, control their expenses and reduce their risk.
Newtek’s and its portfolio companies’ products and services include: Business Lending, SBA Lending Solutions, Electronic Payment Processing, Technology Solutions (Cloud Computing, Data Backup, Storage and Retrieval, IT Consulting), eCommerce, Accounts Receivable Financing & Inventory Financing, Insurance Solutions, Web Services, and Payroll and Benefits Solutions.
Newtek® and Your Business Solutions Company®, are registered trademarks of Newtek Business Services Corp.

This story originally appeared on Fintel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.