NewtekOne screens cheap versus peers with insider buying support, but an earnings-quality red flag on free cash flow, a leverage penalty, and an unsafe dividend yield temper the value case after the stock reached its analyst target.
Thesis pillars
- Cheap Forward Multiple Vs Peers→Stable
- Earnings Quality Red Flag→Stable
- Insider Buying Conviction→Stable
- +2 more pillars — see the Why tab for full reasoning
NewtekOne, Inc. (NEWT) Stock Analysis
Range Bound setup · Inst Constrain edge
Financial Services · Banks - Regional
Hold if already holding. Not a fresh buy at $14.06, but acceptable to hold if already in. Reasons: Thin upside margin: 4.0%; Leverage penalty (D/E 1.4): -0.5.
NewtekOne is a financial holding company operating Newtek Bank, which originates SBA 7(a) loans (the third-largest SBA lender by dollar volume in fiscal 2026), SBA 504 loans, and commercial and industrial loans, alongside Newtek Payments, Newtek Insurance and Newtek Payroll... Read more
Hold if already holding. Not a fresh buy at $14.06, but acceptable to hold if already in. Reasons: Thin upside margin: 4.0%; Leverage penalty (D/E 1.4): -0.5. Chart setup: RSI 54 mid-range, Bollinger mid-band. Maintain position. Not compelling to add more. Score 6.2/10, moderate confidence.
Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 21d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.
About NewtekOne, Inc.
About NewtekOne, Inc.
NewtekOne originated $767.8 million of SBA 7(a) loans during 2025 through Newtek Bank, its commercial bank subsidiary, which held PLP status allowing expedited SBA guarantee processing, and surpassed $1.4 billion in total deposits as of December 31, 2025 after launching Business Checking in December 2023. The company converted from a business development company to a financial holding company in January 2023 following its acquisition of Newtek Bank, and reduced headcount by 85% since the beginning of 2024 as part of a $400 million expense-reduction program tied to outsourcing loan servicing to MOHELA and divesting its Business Processing segment. Newtek Bank's SBA 7(a) loan portfolio spanned 8,431 loans across 50 states and 82 industries as of December 31, 2025.
NewtekOne earns revenue through net interest income on SBA 7(a), SBA 504, commercial-and-industrial and asset-based loans originated by Newtek Bank, plus gains on selling the SBA-guaranteed portions of 7(a) loans in the secondary market at premiums shared with the SBA above a 110%-of-par threshold, and fee income from Newtek Payments (merchant card processing, generating $5.2 billion in 2025 processed volume), Newtek Insurance Agency and Newtek Payroll and Benefits Solutions. The company acquires nearly all clients through its patented NewTracker referral-tracking platform, sourcing hundreds of daily referrals from alliance partners such as banks, credit unions, trade associations and accounting firms rather than paying traditional loan brokers or maintaining bank branches. Newtek Bank retains the unguaranteed portion of SBA 7(a) loans on balance sheet, funded increasingly through core deposits gathered digitally rather than through the loan securitizations NSBF historically used before winding down its SBA lending operations in 2023.
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NewtekOne's core lending franchise is structurally tied to a single federal program: SBA 7(a) loans, where Newtek Bank depends on maintaining its PLP designation to process guarantees without prior SBA review, and where the government shutdown during the fourth quarter of 2025 and recent changes to the SBA 7(a) Program contributed to a decline in 2025 origination volume to $767.8 million from $943.0 million in 2024. Because the guaranteed portion of every 7(a) loan carries the full faith and credit of the U.S. government, any future funding lapse, appropriations fight or SBA program-rule change would flow through directly to NewtekOne's origination volume and premium income in a way that a diversified commercial bank without SBA concentration would not experience.
See also: Financial Services · Banks - Regional
From NewtekOne, Inc.'s most recent 10-K filing, extracted July 6, 2026.
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Rating Breakdown
1 floor-breaker·1 ceiling hit
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
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Frequently Asked Questions
Hold if already holding. Not a fresh buy at $14.06, but acceptable to hold if already in. Reasons: Thin upside margin: 4.0%; Leverage penalty (D/E 1.4): -0.5. Chart setup: RSI 54 mid-range, Bollinger mid-band. Maintain position. Not compelling to add more. Target $14.62 (+4.0%), stop $13.08 (−7.5%), A.R:R 0.5:1. Score 6.2/10, moderate confidence.
Take-profit target: $14.62 (+4.0% upside). Target $14.62 (+4.0%), stop $13.08 (−7.5%), A.R:R 0.5:1. Stop-loss: $13.08.
Thin upside margin: 4.0%; Leverage penalty (D/E 1.4): -0.5; Negative momentum.
NewtekOne, Inc. trades at a P/E of 6.3 (forward 5.7). TrendMatrix value score: 8.9/10. Verdict: Hold.
13 analysts cover NEWT with a consensus score of 3.7/5. Average price target: $17.
What does NewtekOne, Inc. do?NewtekOne is a financial holding company operating Newtek Bank, which originates SBA 7(a) loans (the third-largest SBA...
NewtekOne is a financial holding company operating Newtek Bank, which originates SBA 7(a) loans (the third-largest SBA lender by dollar volume in fiscal 2026), SBA 504 loans, and commercial and industrial loans, alongside Newtek Payments, Newtek Insurance and Newtek Payroll businesses serving independent business owners nationwide. The company acquires clients primarily through its patented NewTracker referral-management platform and alliance partnerships with banks, credit unions and trade associations rather than traditional branches or loan brokers. NewtekOne originated $767.8 million of SB