NEWT: NewtekOne Inc. Common Stock – Navigating Recent Shifts and Future Signals

Stock Symbol: NEWT Generate Date: 2025-05-28 20:17:31

Let's break down what's been happening with NewtekOne and what the tea leaves might be telling us.

Recent News Buzz: A Mixed Bag

The news flow for NewtekOne has been a bit of a mixed picture lately. On one hand, we saw an analyst from Keefe, Bruyette & Woods lower their price target for NEWT from $15 to $13. That's not ideal, as it suggests a more cautious outlook from a professional observer. They're keeping a "Market Perform" rating, which basically means they expect the stock to move in line with the broader market, not really outperforming or underperforming significantly.

However, there's also some positive news. NewtekOne reported its first-quarter earnings for 2025, showing basic and diluted EPS of $0.36 and $0.35 respectively. This gives us a concrete look at their recent financial performance. Plus, the company successfully closed a pretty substantial $184 million loan securitization. That's a big deal because it helps them manage their loan portfolio and brings in capital, which is generally a good sign for a financial services company.

So, the vibe is definitely mixed: a lowered price target from an analyst on one side, but solid earnings and a successful financing deal on the other.

Price Check: A Rollercoaster Ride

Looking at the stock's journey over the last few months, it's been quite a ride. Back in late February, NEWT was trading around $12.78. It then saw a dip, hitting lows around $9.50 in early April. Since then, it's been on a gradual climb, pushing back up.

Today, May 28th, the stock closed at $10.86. This is a decent recovery from those April lows, but it's still well below where it was a few months ago and below the analyst's new $13 target. The trading volume has been pretty varied, with some days seeing much higher activity, especially during those sharper price moves. For instance, on May 5th, when the price dipped significantly, volume spiked to 715,000 shares, much higher than the average. This tells us there was a lot of action around those price changes.

Now, what about the future? Our AI model at AIPredictStock.com suggests a relatively flat movement for today (0.00% predicted change), followed by a slight uptick of 0.11% tomorrow, and then a more noticeable 1.27% increase the day after. This hints at a gentle upward drift in the very near term.

Outlook & Ideas: What to Watch For

Putting it all together, the situation for NEWT seems to lean towards a "hold" or "cautious accumulate" for those already interested, especially given the recent recovery and the AI's gentle upward prediction.

Here's why: The analyst's lowered price target is a yellow flag, but the company's actual financial results (earnings) and their successful securitization deal are green shoots. The stock has already taken a hit and is now showing signs of stabilizing and even recovering from its recent lows.

• Potential Entry Consideration: If you're thinking about getting in, the current price around $10.86 to $11.00 could be an interesting area. The AI predicts a slight upward trend, and the stock has shown some resilience around these levels after its April dip. The recommendation data also points to a support level around $11.06, suggesting this could be a good spot for buyers.
• Potential Exit/Stop-Loss Consideration: For managing risk, a stop-loss around $10.00 makes sense. This is below recent significant lows and would signal a breakdown of the current recovery trend. On the upside, if the stock continues its gentle climb, a take-profit target around $11.33 could be considered, aligning with some of the technical indicators and the AI's projected upward movement.

Company Context: Lending and Beyond

It's worth remembering that NewtekOne operates primarily as a bank holding company, focusing on providing financial solutions to small and medium-sized businesses. They do everything from accepting deposits and making loans (including SBA loans) to offering electronic payment processing and even payroll services. So, when you see news about loan securitizations, it's directly tied to their core business. The fact that they successfully closed a large one is a positive sign for their operational health, even with an analyst adjusting their price outlook. Their P/E ratio of 5.22x is quite low compared to the industry average of 8.4x, which could suggest it's undervalued, but their debt-to-equity ratio is high, something to keep in mind.

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and you could lose money. Always conduct your own thorough research and consult with a qualified financial professional before making any investment decisions.