Navient (NASDAQ:NAVI) Stock Price Down 10% After Earnings Miss

Navient Corporation (NASDAQ:NAVI)’s share price fell 10% during mid-day trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $10.73 and last traded at $10.8360. 464,653 shares changed hands during mid-day trading, a decline of 37% from the average session volume of 736,618 shares. The stock had previously closed at $12.04.

The credit services provider reported $0.02 EPS for the quarter, missing the consensus estimate of $0.31 by ($0.29). Navient had a positive return on equity of 4.70% and a negative net margin of 2.47%.The firm had revenue of $137.00 million for the quarter, compared to analyst estimates of $144.25 million. During the same quarter in the prior year, the company earned ($0.24) earnings per share. Navient has set its FY 2026 guidance at 0.650-0.800 EPS.

Navient Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, December 19th. Shareholders of record on Friday, December 5th were paid a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a dividend yield of 6.5%. The ex-dividend date was Friday, December 5th. Navient’s payout ratio is currently -118.52%.

More Navient News

Here are the key news stories impacting Navient this week:

• Positive Sentiment: Management laid out a growth plan and cost reductions, targeting ~60% loan-origination growth to about $4B in 2026 and a strategic realignment intended to improve future revenue mix and margins — a constructive long-term signal. Navient targets 60% loan origination growth
• Neutral Sentiment: Company released its Q4 results and held an earnings call; management emphasized shifting from legacy credit-servicing exposure toward originations-driven growth — useful context but not an immediate fix for near-term earnings weakness. Navient posts fourth-quarter 2025 financial results
• Neutral Sentiment: Earnings-call transcripts and presentation provide detail on the turnaround plan and legacy loan performance; these give investors more transparency but leave near-term earnings trajectory uncertain. Q4 2025 earnings call transcript
• Negative Sentiment: FY-2026 EPS guidance was set at $0.65–$0.80, well below street consensus (~$1.18), signaling materially lower near-term earnings expectations and pressuring the stock. Q4 2025 Earnings Call Highlights
• Negative Sentiment: Market reaction centered on weaker operating metrics: declines in net interest and other income, revenue misses and signs of legacy credit pressure — these contributed to a sharp post-release sell-off. Why Navient shares are plunging
• Negative Sentiment: Analyst and broker reactions have been unfavorable: Deutsche Bank cut its price target from $15 to $9 (hold), and the brokerage consensus averaged toward “Strong Sell,” amplifying downward pressure and likely limiting near-term buying interest. Deutsche Bank price target cut Brokerage ratings average
• Negative Sentiment: Shares recently hit a new 1-year low after the results and guidance, reflecting the market’s tightened view on near-term profitability and the time needed for the turnaround to materialize. Reached new 1-year low

Analyst Ratings Changes

Several brokerages recently commented on NAVI. Wall Street Zen downgraded Navient from a “hold” rating to a “sell” rating in a report on Saturday, November 1st. JPMorgan Chase & Co. dropped their price objective on shares of Navient from $14.00 to $12.50 and set a “neutral” rating on the stock in a research note on Thursday, October 30th. Weiss Ratings restated a “sell (d)” rating on shares of Navient in a research note on Monday, December 29th. Deutsche Bank Aktiengesellschaft lowered their price target on shares of Navient from $15.00 to $9.00 and set a “hold” rating for the company in a report on Thursday. Finally, Morgan Stanley set a $12.00 price objective on shares of Navient in a report on Wednesday. Five research analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Reduce” and a consensus price target of $11.63.

Institutional Investors Weigh In On Navient

Institutional investors have recently made changes to their positions in the company. GAMMA Investing LLC boosted its holdings in shares of Navient by 70.5% in the 4th quarter. GAMMA Investing LLC now owns 1,978 shares of the credit services provider’s stock valued at $26,000 after buying an additional 818 shares during the period. Intrust Bank NA boosted its stake in Navient by 8.4% in the second quarter. Intrust Bank NA now owns 11,503 shares of the credit services provider’s stock valued at $162,000 after acquiring an additional 895 shares during the period. Commonwealth of Pennsylvania Public School Empls Retrmt SYS grew its holdings in shares of Navient by 5.4% during the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 18,698 shares of the credit services provider’s stock valued at $264,000 after purchasing an additional 951 shares during the last quarter. CWM LLC raised its position in shares of Navient by 79.0% during the 3rd quarter. CWM LLC now owns 2,525 shares of the credit services provider’s stock worth $33,000 after purchasing an additional 1,114 shares during the period. Finally, Corient Private Wealth LLC lifted its holdings in shares of Navient by 6.8% in the 2nd quarter. Corient Private Wealth LLC now owns 18,372 shares of the credit services provider’s stock worth $259,000 after purchasing an additional 1,168 shares during the last quarter. 97.14% of the stock is currently owned by institutional investors.

Navient Trading Up 0.7%

The firm has a market cap of $963.40 million, a P/E ratio of -12.05 and a beta of 1.29. The firm has a fifty day moving average of $12.51 and a 200-day moving average of $12.78. The company has a debt-to-equity ratio of 16.94, a quick ratio of 9.41 and a current ratio of 9.01.

Navient Company Profile

Navient Corporation (NASDAQ: NAVI) is a specialized provider of asset management and business processing solutions, with a primary focus on student loan servicing. Established in 2014 through the separation from Sallie Mae, Navient assumed responsibility for servicing federal and private education loans, positioning itself as one of the largest servicers of higher education debt in the United States.

The company’s core activities center on federal student loan servicing under contracts with the U.S.