Navient Corp (NAVI) Upgraded by Zacks Investment Research to “Hold”
Navient Corp (NASDAQ:NAVI) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a research report issued on Monday.
According to Zacks, “Shares of Navient have underperformed the industry over the last six months. Also, the company does not have an impressive earnings surprise history. It missed the Zacks Consensus Estimate for earnings in two of the trailing four quarters. Though, Navient’s third-quarter results surpassed the consensus estimate on the back of strong growth in fee income, the results remained affected by higher expenses and lower net interest income. Further, Navient, which services large number of student loans, is under regulatory claims and litigation burden owing to its practices in handling loans. However, it benefits from the ongoing economic recovery and remains focused on leveraging its asset recovery & processing businesses.”
Several other equities analysts also recently issued reports on the company. BMO Capital Markets cut their price objective on Navient Corp from $16.00 to $14.00 and set a “market perform” rating for the company in a research report on Thursday. Jefferies Group LLC reiterated a “hold” rating and issued a $16.00 price objective on shares of Navient Corp in a research report on Monday, October 16th. Citigroup Inc. began coverage on Navient Corp in a research report on Monday, October 16th. They issued a “buy” rating and a $20.00 price objective for the company. Compass Point downgraded Navient Corp from a “buy” rating to a “neutral” rating and cut their price objective for the company from $16.50 to $15.50 in a research report on Thursday, October 5th. Finally, Credit Suisse Group cut their price objective on Navient Corp from $16.50 to $16.00 and set an “outperform” rating for the company in a research report on Wednesday, October 4th. One research analyst has rated the stock with a sell rating, seven have issued a hold rating, five have given a buy rating and one has issued a strong buy rating to the company’s stock. Navient Corp presently has a consensus rating of “Hold” and an average target price of $18.27.
Shares of Navient Corp (NASDAQ:NAVI) traded down 1.011% during midday trading on Monday, reaching $12.235. The company’s stock had a trading volume of 1,826,099 shares. The company has a market capitalization of $3.31 billion, a price-to-earnings ratio of 6.763 and a beta of 2.48. Navient Corp has a 52-week low of $11.48 and a 52-week high of $17.95. The stock has a 50 day moving average price of $13.58 and a 200-day moving average price of $14.61.
Navient Corp (NASDAQ:NAVI) last posted its earnings results on Tuesday, October 17th. The credit services provider reported $0.55 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.50 by $0.05. The business had revenue of $343.00 million during the quarter, compared to the consensus estimate of $361.33 million. Navient Corp had a return on equity of 19.98% and a net margin of 49.58%. Navient Corp’s revenue was down 15.3% on a year-over-year basis. During the same quarter last year, the company earned $0.50 EPS. Equities research analysts expect that Navient Corp will post $1.74 EPS for the current year.
Navient Corp announced that its board has authorized a share repurchase program on Wednesday, October 4th that permits the company to buyback shares. This buyback authorization permits the credit services provider to reacquire shares of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.
In other news, EVP John M. Kane sold 28,886 shares of the business’s stock in a transaction on Tuesday, September 26th. The stock was sold at an average price of $15.00, for a total transaction of $433,290.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 1.68% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in NAVI. Ameritas Investment Partners Inc. bought a new stake in shares of Navient Corp during the first quarter worth $112,000. Creative Planning raised its position in shares of Navient Corp by 7.2% during the second quarter. Creative Planning now owns 7,066 shares of the credit services provider’s stock worth $118,000 after acquiring an additional 472 shares during the last quarter. Ffcm LLC raised its position in shares of Navient Corp by 144.5% during the second quarter. Ffcm LLC now owns 7,071 shares of the credit services provider’s stock worth $119,000 after acquiring an additional 4,179 shares during the last quarter. Bronfman E.L. Rothschild L.P. raised its position in shares of Navient Corp by 8.8% during the second quarter. Bronfman E.L. Rothschild L.P. now owns 7,564 shares of the credit services provider’s stock worth $126,000 after acquiring an additional 612 shares during the last quarter. Finally, Jane Street Group LLC bought a new stake in shares of Navient Corp during the first quarter worth $153,000. Institutional investors own 93.01% of the company’s stock.
Navient Corp Company Profile
Navient Corporation provides asset management and business processing services to education, healthcare and government clients at the federal, state and local levels. The Company holds the portfolio of education loans insured or federally guaranteed under the Federal Family Education Loan Program (FFELP).
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