On September 13, 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, Sloane has purchased a total of 16,000 shares and sold none.
But who is Barry Sloane? Sloane is the Chairman, President, and CEO of NewtekOne Inc. He has been instrumental in guiding the company's strategic direction and growth. His recent purchase of additional shares underscores his belief in the company's potential and aligns his interests even more closely with those of the company's shareholders.
NewtekOne Inc is a business development company that provides a wide range of business services and financial products to the small- and medium-sized business market. These services include business lending, electronic payment processing, managed technology solutions, eCommerce, accounts receivable and inventory financing, and insurance services, among others.
The insider transaction history for NewtekOne Inc shows a clear trend of insider buying. Over the past year, there have been 16 insider buys and no insider sells. This trend suggests that those with the most intimate knowledge of the company's operations see value in owning its stock.
On the day of the insider's recent buy, shares of NewtekOne Inc were trading for $16.23 apiece, giving the stock a market cap of $414.717 million. The price-earnings ratio is 15.28, which is higher than both the industry median of 8.29 and the company’s historical median price-earnings ratio. This could suggest that the stock is currently overvalued compared to its earnings.
However, when we consider the GuruFocus Value of $23.98, the stock appears to be undervalued, with a price-to-GF-Value ratio of 0.68. This could indicate that the stock is a possible value trap, and investors should think twice before buying.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the insider's recent purchase of NewtekOne Inc shares, along with the company's strong insider buying trend, could be a positive sign for investors. However, the stock's current valuation metrics suggest that it may be overvalued, and investors should proceed with caution.
