Navient (NAVI) Upgraded to “Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of Navient (NASDAQ:NAVI) from a hold rating to a buy rating in a report released on Monday. 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.”
NAVI has been the subject of several other research reports. ValuEngine cut shares of Navient from a hold rating to a sell rating in a research note on Saturday, October 27th. Citigroup reduced their price objective on shares of Navient from $20.00 to $18.00 and set a buy rating for the company in a research note on Thursday, October 25th. BidaskClub raised shares of Navient from a strong sell rating to a sell rating in a research note on Thursday, November 8th. Finally, Oppenheimer reaffirmed a hold rating on shares of Navient in a research note on Thursday, October 25th. Three research 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. The stock has a consensus rating of Hold and a consensus price target of $15.55.
Navient (NASDAQ:NAVI) last issued its quarterly earnings data on Tuesday, October 23rd. The credit services provider reported $0.53 EPS for the quarter, beating the consensus estimate of $0.49 by $0.04. The company had revenue of $327.00 million during the quarter, compared to analysts’ expectations of $310.17 million. Navient had a net margin of 4.29% and a return on equity of 13.43%. Navient’s revenue for the quarter was down 5.2% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.55 earnings per share. As a group, equities research analysts anticipate that Navient will post 1.97 earnings per share for the current year.
The business also recently announced a quarterly dividend, which will be paid on Friday, December 21st. Shareholders of record on Friday, December 7th will be given 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 5.92%. Navient’s payout ratio is presently 35.75%.
A number of institutional investors have recently made changes to their positions in NAVI. Texas Permanent School Fund lifted its position in Navient by 151.3% during the second quarter. Texas Permanent School Fund now owns 170,781 shares of the credit services provider’s stock valued at $2,225,000 after purchasing an additional 102,824 shares during the last quarter. Aperio Group LLC lifted its position in Navient by 1.5% during the second quarter. Aperio Group LLC now owns 353,942 shares of the credit services provider’s stock valued at $4,612,000 after purchasing an additional 5,291 shares during the last quarter. Alps Advisors Inc. lifted its position in Navient by 5.0% during the second quarter. Alps Advisors Inc. now owns 3,816,609 shares of the credit services provider’s stock valued at $50,837,000 after purchasing an additional 183,010 shares during the last quarter. Los Angeles Capital Management & Equity Research Inc. bought a new stake in Navient during the second quarter valued at approximately $233,000. Finally, New Mexico Educational Retirement Board lifted its position in Navient by 147.8% during the second quarter. New Mexico Educational Retirement Board now owns 62,000 shares of the credit services provider’s stock valued at $808,000 after purchasing an additional 36,984 shares during the last quarter. Institutional investors and hedge funds own 93.54% of the company’s stock.
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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