Zacks Investment Research cut shares of NewStar Financial, Inc. (NASDAQ:NEWS) from a buy rating to a hold rating in a research note released on Tuesday, August 8th.
According to Zacks, “NEWSTAR FINANCIAL INC is a specialized commercial finance company focused on meeting the complex financing needs of companies and private investors in the middle markets. The Company specializes in providing senior secured debt financing for the acquisition or recapitalization of mid-sized companies and commercial real estate. NewStar originates loans directly through a team of experienced, senior bankers organized around key industry and market segments. The Company targets ‘hold’ positions of up to $20 million and selectively underwrites or arranges larger transactions for syndication to other lenders. NewStar is headquartered in Boston, MA and has regional offices in Darien, CT, Chicago, IL, San Diego, CA, and Charleston, SC. “
A number of other equities research analysts have also recently weighed in on the stock. ValuEngine upgraded shares of NewStar Financial from a hold rating to a buy rating in a research report on Saturday, May 20th. Keefe, Bruyette & Woods set a $11.00 price objective on shares of NewStar Financial and gave the company a hold rating in a report on Monday, April 10th. Four equities research analysts have rated the stock with a hold rating, The stock currently has an average rating of Hold and an average target price of $11.50.
NewStar Financial (NASDAQ NEWS) traded up 0.09% on Tuesday, hitting $10.86. 61,518 shares of the stock traded hands. The stock has a market cap of $451.85 million, a price-to-earnings ratio of 19.60 and a beta of 2.03. NewStar Financial has a 52-week low of $8.03 and a 52-week high of $11.49. The company’s 50 day moving average price is $10.82 and its 200-day moving average price is $10.25.
NewStar Financial (NASDAQ:NEWS) last announced its quarterly earnings results on Wednesday, August 2nd. The credit services provider reported $0.10 earnings per share for the quarter, missing analysts’ consensus estimates of $0.15 by $0.05. NewStar Financial had a net margin of 8.65% and a return on equity of 3.76%. The company had revenue of $20.19 million for the quarter, compared to analyst estimates of $24.32 million. On average, analysts forecast that NewStar Financial will post $0.43 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Friday, September 15th. Investors of record on Tuesday, August 29th will be paid a $0.02 dividend. The ex-dividend date of this dividend is Friday, August 25th. This represents a $0.08 dividend on an annualized basis and a yield of 0.74%. NewStar Financial’s dividend payout ratio is currently 14.55%.
Several hedge funds have recently modified their holdings of NEWS. Algert Global LLC bought a new stake in shares of NewStar Financial during the first quarter valued at $123,000. KCG Holdings Inc. increased its stake in shares of NewStar Financial by 38.5% in the first quarter. KCG Holdings Inc. now owns 15,196 shares of the credit services provider’s stock valued at $161,000 after buying an additional 4,228 shares in the last quarter. Voya Investment Management LLC increased its stake in shares of NewStar Financial by 19.0% in the second quarter. Voya Investment Management LLC now owns 15,293 shares of the credit services provider’s stock valued at $161,000 after buying an additional 2,444 shares in the last quarter. Metropolitan Life Insurance Co. NY increased its stake in shares of NewStar Financial by 13.5% in the first quarter. Metropolitan Life Insurance Co. NY now owns 17,046 shares of the credit services provider’s stock valued at $180,000 after buying an additional 2,021 shares in the last quarter. Finally, Parametric Portfolio Associates LLC increased its stake in NewStar Financial by 69.8% in the first quarter. Parametric Portfolio Associates LLC now owns 17,504 shares of the credit services provider’s stock valued at $185,000 after buying an additional 7,198 shares during the period. Institutional investors and hedge funds own 74.58% of the company’s stock.
NewStar Financial Company Profile
NewStar Financial, Inc (NewStar) is a commercial finance company. The Company operates through two segments: Commercial Lending and Asset Management. The Commercial Lending segment represents its direct lending activities, which are focused on providing a range of flexible senior secured debt options to mid-sized companies.
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