Navient (NASDAQ:NAVI) Stock Price Down 10% on Disappointing Earnings

Navient Corporation (NASDAQ:NAVI) was down 10% during trading on Wednesday following a dissappointing earnings announcement. The stock traded as low as $10.73 and last traded at $10.8360. Approximately 464,653 shares were traded during trading, a decline of 37% from the average daily volume of 736,618 shares. The stock had previously closed at $12.04.

The credit services provider reported $0.02 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.31 by ($0.29). The business had revenue of $137.00 million for the quarter, compared to analysts’ expectations of $144.25 million. Navient had a negative net margin of 1.48% and a positive return on equity of 4.12%. During the same period in the previous year, the business earned ($0.24) earnings per share. Navient has set its FY 2026 guidance at 0.650-0.800 EPS.

Navient Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, December 19th. Investors 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 6.0%. The ex-dividend date was Friday, December 5th. Navient’s dividend payout ratio is -118.52%.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. Weiss Ratings reiterated a “sell (d)” rating on shares of Navient in a report on Monday, December 29th. JPMorgan Chase & Co. reduced their price objective on shares of Navient from $14.00 to $12.50 and set a “neutral” rating for the company in a research note on Thursday, October 30th. Wall Street Zen cut shares of Navient from a “hold” rating to a “sell” rating in a research report on Saturday, November 1st. Barclays lifted their price target on shares of Navient from $10.00 to $11.00 and gave the stock an “underweight” rating in a report on Tuesday, January 6th. Finally, TD Cowen reiterated a “sell” rating on shares of Navient in a report on Thursday, October 30th. Four research analysts have rated the stock with a Hold rating and five have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Strong Sell” and a consensus price target of $12.57.

Institutional Trading of Navient

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. American Century Companies Inc. grew its holdings in Navient by 3.4% during the second quarter. American Century Companies Inc. now owns 2,021,710 shares of the credit services provider’s stock worth $28,506,000 after acquiring an additional 66,814 shares during the period. Connor Clark & Lunn Investment Management Ltd. lifted its holdings in Navient by 142.5% in the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 24,710 shares of the credit services provider’s stock valued at $348,000 after acquiring an additional 14,519 shares during the period. Nisa Investment Advisors LLC boosted its position in Navient by 4,721.5% in the 3rd quarter. Nisa Investment Advisors LLC now owns 116,583 shares of the credit services provider’s stock worth $1,533,000 after purchasing an additional 114,165 shares in the last quarter. Campbell & CO Investment Adviser LLC purchased a new stake in Navient in the 2nd quarter worth approximately $288,000. Finally, AlphaQuest LLC grew its stake in shares of Navient by 466.0% during the 2nd quarter. AlphaQuest LLC now owns 92,594 shares of the credit services provider’s stock worth $1,306,000 after purchasing an additional 76,234 shares during the period. Institutional investors and hedge funds own 97.14% of the company’s stock.

Navient Stock Performance

The company has a current ratio of 9.41, a quick ratio of 9.41 and a debt-to-equity ratio of 16.98. The firm’s fifty day moving average price is $12.58 and its two-hundred day moving average price is $12.82. The stock has a market capitalization of $1.04 billion, a PE ratio of -19.71 and a beta of 1.29.

About Navient

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.