KBW Downgrades Newtek Business to Hold

By Jason Carr

KBW analyst Jefferson Harralson downgraded Newtek Business (NASDAQ: NEWT) to Hold today. The company’s shares closed yesterday at $15.37, close to its 52-week high of $15.78.

According to TipRanks.com, Harralson is a 5-star analyst with an average return of 17.9% and a 82.9% success rate. Harralson covers the Financial sector, focusing on stocks such as Seacoast Banking Corporation Of Florida, Pinnacle Financial Partners, and Southern First Bancshares.

Currently, the analyst consensus on Newtek Business is Moderate Buy and the average price target is $16, representing a 4.1% upside.

In a report issued on November 18, JMP Securities also reiterated a Hold rating on the stock.

Based on Newtek Business’ latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $16.57 million and quarterly net profit of $10.04 million. In comparison, last year the company earned revenue of $13.66 million and had a net profit of $4.75 million.

Newtek Business Services Corp. provides financial and business services to the small and medium sized business market. The Small Business Authority is a brand of Newtek Business Services, Inc. It operates through six segments: Electronic Payment Processing, Managed Technology Solutions, Small Business Finance, All Other, Corporate Activities and Capco. The Electronic Payment Processing segment markets third party credit card processing and check approval services to the small and medium sized business market under the name of Newtek Merchant Solutions. The Managed Technology Solutions segment offers shared and dedicated web hosting, data storage and backup services, cloud computing plan and related services to the small and medium sized business market. The Small Business Finance segment originates, sells and services loans to qualifying small businesses. The All Other segment includes results from businesses formed from investments in qualified businesses made through Capco programs which cannot be aggregated with other operating segments. The Corporate Activities segment implements business strategy, directs marketing, provides technology oversight and guidance, coordinates and integrates activities of the segments, contracts with alliance partners, acquires customer opportunities, and owns its proprietary NewTracker referral system. The Capco segment consists of twelve certified capital companies which invests in small- and medium-sized businesses. The company was founded by Barry Sloane, in 1998 and is headquartered in New York, NY.