Notable Stock News to Watch: Newtek Business Services Corp. (NASDAQ:NEWT)

Newtek Business Services Corp. (NASDAQ:NEWT) spotted trading -8.42% off 52-week high price. On the other end, the stock has been noted 21.31% away from the low price over the last 52-weeks. The stock changed -0.41% to recent value of $21.97. The stock transacted 112182 shares during most recent day however it has an average volume of 162.97K shares. The company has 19.76M of outstanding shares and 18.90M shares were floated in the market.

On Jan. 10, 2020, Newtek Business Services Corp. (NASDAQ:NEWT) an internally managed business development company (BDC), released that for the three months ended December 31, 2019,  Newtek Small Business Finance, LLC (NSBF) funded a quarterly record $183.0 million in SBA 7(a) loans, which represents a 22.8% increase over SBA 7(a) loans funded for the three months ended December 31, 2018.  For the year ended December 31, 2019, NSBF funded $517.7 million of SBA 7(a) loans; an increase of 10.3% over SBA 7(a) loans funded for the year ended December 31, 2018.  In addition, with respect to total loan closings for the quarter, NSBF, Newtek Business Lending (NBL), a  wholly owned portfolio company, and Newtek Conventional Lending (NCL), the joint venture between a Newtek wholly owned subsidiary and Conventional Lending TCP Holding, LLC, a wholly owned affiliate of BlackRock TCP Capital Corp, closed a total of $249.1 million of  SBA 7(a), SBA 504 and non-conforming conventional loans.

Barry Sloane, Chairman, President and Chief Executive Officer said, We are pleased to announce our fourth quarter and full year 2019 loan fundings across the different lending products we offer through  Newtek and our portfolio companies. Our NSBF SBA 7(a) loan platform funded a record $183.0 million of loans during the fourth quarter of 2019, which represents quarterly year-over-year growth of 22.8%.  In addition, our 2019 year-over-year growth of 10.3% in SBA 7(a) loan fundings is in line with our previously forecasted funding growth expectations of 10.8%.  Furthermore, total loan closings in 2019 across the full Newtek small business finance platform (SBA 7(a), SBA 504 and non-conforming commercial loans), totaled approximately $643 million, which does not include the fundings of Newtek Business Credit Solutions, a wholly-owned controlled portfolio company that provides receivables and inventory financing.

Mr. Sloane continued, Our system and origination platform is generating great opportunities for our company and investors within our expected credit parameters and performance expectations.  The Newtek business finance platform is doing what it has been designed for and its loan origination volumes are being spread across four funding platforms, which give us a diverse stream of income encompassing fee income, servicing income, net interest margin and gain on sale. Our goal to reduce dependence on gain-on-sale income and spread our income across multiple different lending platforms will be evident and discussed in further detail when we release our full year 2019 financial results and host the accompanying conference call.

Its earnings per share (EPS) expected to touch remained -15.20% for this year while earning per share for the next 5-years is expected to reach at 3.00%. NEWT has an operating margin of 40.30% while its profit margin remained 34.40% for the last 12 months.

The price moved ahead of -3.67% from the mean of 20 days, -3.87% from mean of 50 days SMA and performed -0.89% from mean of 200 days price. Company’s performance for the week was -3.85%, -7.38% for month and YTD performance remained -3.00%.

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