NewtekOne, Inc. (NASDAQ: NEWT) has disclosed that its Chief Financial Officer, Frank DeMaria, purchased $6,957 worth of the company's common stock in a recent transaction, according to a regulatory filing. The purchase, made on 11 March 2025, involved 600 shares at an average price of approximately $11.59 each. The transaction was reported to the U.S. Securities and Exchange Commission and reflects insider confidence in the financial services firm.
NewtekOne, which provides business lending and payment processing solutions to small and medium-sized enterprises, has seen its shares trade within a range of roughly $9.50 to $14.00 over the past twelve months. The latest insider buy comes at a time when the broader U.S. small-cap index, the Russell 2000, has faced headwinds from rising interest rates and tighter credit conditions. The Russell 2000 was recently down around 2.3% month-on-month, as investors weigh the impact of persistent inflation on smaller companies.
For UK investors with exposure to U.S. equities through pension funds or diversified portfolios, insider buying at a firm like NewtekOne can offer a signal about management’s view of the company's valuation. However, analysts caution that single insider trades should not be taken as a definitive indicator of future performance. 'Insider purchases can be a positive sign, but they need to be seen in the context of overall market conditions and the company's fundamentals,' said a London-based equity strategist.
The purchase also highlights the ongoing divergence between large-cap and small-cap performance. While the FTSE 100 has held relatively steady, supported by heavyweight commodity and energy stocks, smaller companies on both sides of the Atlantic have struggled with higher borrowing costs. NewtekOne’s core business—lending to small businesses—is particularly sensitive to shifts in the interest rate environment, making insider confidence noteworthy for sector watchers.
UK investors holding U.S. small-cap funds or ETFs should monitor whether this insider activity is part of a broader trend. The next quarterly earnings report from NewtekOne, expected in May, will provide further clarity on whether the CFO’s confidence is backed by operational performance. Source: SEC Filing