Zacks Investment Research upgraded shares of Navient (NASDAQ:NAVI) from a hold rating to a buy rating in a research report sent to investors on Monday morning. They currently have $13.00 price target on the credit services provider’s stock.
According to Zacks, “Shares of Navient have underperformed the industry so far this year. The company has an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters. The company remains well poised to benefit from the ongoing economic recovery and remains focused on leveraging its asset recovery & processing businesses. However, it continues to struggle with regulatory claims and litigation burden owing to its practices in handling large number of student loans. Also, unsustainable capital deployment activities remain a concern. Nevertheless, inorganic growth strategies to diversify product offerings and boost overall business encourage us. The company continues to deploy technology platform and digital marketing tools to attract originations that bodes well for its financials.”
Other equities research analysts also recently issued research reports about the company. ValuEngine downgraded Navient from a hold rating to a sell rating in a report on Saturday, October 27th. BidaskClub downgraded Navient from a hold rating to a sell rating in a report on Friday, October 12th. Citigroup cut their price objective on Navient from $20.00 to $18.00 and set a buy rating on the stock in a report on Thursday, October 25th. Finally, Oppenheimer reiterated a hold rating on shares of Navient in a report on Thursday, October 25th. Three investment analysts have rated the stock with a sell rating, three have issued a hold rating and four have assigned a buy rating to the company’s stock. Navient has a consensus rating of Hold and a consensus target price of $15.55.
Navient (NASDAQ:NAVI) last posted its quarterly earnings data on Tuesday, October 23rd. The credit services provider reported $0.53 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.49 by $0.04. The firm had revenue of $327.00 million for the quarter, compared to the consensus estimate of $310.17 million. Navient had a return on equity of 13.43% and a net margin of 4.29%. The company’s quarterly revenue was down 5.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.55 EPS. On average, research analysts predict that Navient will post 1.97 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Friday, December 21st. Investors of record on Friday, December 7th will be paid a dividend of $0.16 per share. The ex-dividend date of this dividend is Thursday, December 6th. This represents a $0.64 annualized dividend and a yield of 5.91%. Navient’s payout ratio is 35.75%.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Canyon Capital Advisors LLC grew its stake in Navient by 27.1% during the 2nd quarter. Canyon Capital Advisors LLC now owns 25,607,480 shares of the credit services provider’s stock worth $333,665,000 after purchasing an additional 5,465,768 shares in the last quarter. BlackRock Inc. lifted its holdings in shares of Navient by 43.4% in the 2nd quarter. BlackRock Inc. now owns 24,405,633 shares of the credit services provider’s stock valued at $318,005,000 after purchasing an additional 7,380,981 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Navient by 0.5% in the 3rd quarter. Dimensional Fund Advisors LP now owns 11,905,752 shares of the credit services provider’s stock valued at $160,489,000 after purchasing an additional 64,619 shares during the last quarter. LSV Asset Management lifted its holdings in shares of Navient by 6.9% in the 3rd quarter. LSV Asset Management now owns 6,841,522 shares of the credit services provider’s stock valued at $92,223,000 after purchasing an additional 442,315 shares during the last quarter. Finally, FMR LLC lifted its holdings in shares of Navient by 4.0% in the 2nd quarter. FMR LLC now owns 5,920,147 shares of the credit services provider’s stock valued at $77,139,000 after purchasing an additional 229,419 shares during the last quarter. 93.54% of the stock is owned by hedge funds and other institutional investors.
Navient Company Profile
Navient Corporation provides asset management and business processing services to education, health care, and government clients at the federal, state, and local levels in the United States. The company operates in three segments: Federal Family Education Loan Program (FFELP) Loans, Private Education Loans, and Business Services.
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