Navient Corp. (NAVI) Lowered to “Sell” at Zacks Investment Research
Navient Corp. (NASDAQ:NAVI) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Tuesday.
According to Zacks, “Navient shares have outperformed the Zacks categorized Consumer Loan industry year to date. However, we see limited upside for the stock in the near term given the several challenges. The U.S. student loan industry is currently under heightened regulatory scrutiny over alleged anti-consumer practices. Navient, which services large number of student loans, is under regulatory claims and litigation burden owing to its practices in handling loans. Also, failure to access new loans or lack of alternative revenue areas may deter top-line growth. However, the company should benefit from the ongoing the economic recovery and its previous acquisitions of asset recovery and business process outsourcing firms.”
Shares of Navient Corp. (NASDAQ:NAVI) traded down 1.058% during mid-day trading on Tuesday, hitting $17.305. The company had a trading volume of 1,180,061 shares. Navient Corp. has a one year low of $8.20 and a one year high of $17.95. The company has a market capitalization of $5.25 billion, a PE ratio of 7.101 and a beta of 2.37. The company’s 50-day moving average is $14.88 and its 200 day moving average is $13.88.
Navient Corp. (NASDAQ:NAVI) last released its earnings results on Tuesday, October 18th. The company reported $0.50 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.48 by $0.02. Navient Corp. had a return on equity of 16.50% and a net margin of 16.31%. The business earned $405 million during the quarter, compared to the consensus estimate of $391.75 million. During the same period last year, the business posted $0.47 earnings per share. The business’s revenue for the quarter was down 12.0% on a year-over-year basis. On average, equities research analysts forecast that Navient Corp. will post $1.83 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Friday, December 16th. Shareholders of record on Friday, December 2nd will be given a $0.16 dividend. This represents a $0.64 dividend on an annualized basis and a yield of 3.66%. The ex-dividend date of this dividend is Wednesday, November 30th. Navient Corp.’s dividend payout ratio is currently 26.34%.
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A number of hedge funds have recently added to or reduced their stakes in NAVI. Crow Point Partners LLC purchased a new stake in Navient Corp. during the third quarter worth about $255,000. Caisse DE Depot ET Placement DU Quebec purchased a new stake in Navient Corp. during the third quarter worth about $2,366,000. Xact Kapitalforvaltning AB purchased a new stake in Navient Corp. during the third quarter worth about $1,153,000. Panagora Asset Management Inc. increased its stake in Navient Corp. by 546.6% in the third quarter. Panagora Asset Management Inc. now owns 250,408 shares of the company’s stock worth $3,623,000 after buying an additional 211,680 shares in the last quarter. Finally, Nuveen Fund Advisors LLC increased its stake in Navient Corp. by 133.9% in the third quarter. Nuveen Fund Advisors LLC now owns 199,870 shares of the company’s stock worth $2,892,000 after buying an additional 114,428 shares in the last quarter. 94.08% of the stock is owned by institutional investors and hedge funds.
Navient Corp. Company Profile
Navient Corporation is a loan management, servicing and asset recovery company. The Company holds the portfolio of education loans insured or guaranteed under the Federal Family Education Loan Program (FFELP), as well as the portfolio of Private Education Loans. FFELP Loans are insured or guaranteed by state based on guaranty agreements among the United States Department of Education (ED) and these agencies.
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