Nelnet (NYSE:NNI) Stock Price Target Cut by TD Cowen

Key Points

• TD Cowen cut Nelnet’s price target from $130 to $125 and maintained a “hold” rating, implying just 0.13% upside from the prior close.
• Analyst sentiment remains cautious: Nelnet has an average “Reduce” rating, with two holds and one sell, while other firms recently downgraded the stock.
• Nelnet’s latest quarterly results fell short of expectations, reporting $1.77 EPS versus the $2.13 consensus and revenue of $410.01 million versus estimates of $419.92 million.

Nelnet (NYSE:NNI - Get Free Report) had its price objective lowered by equities research analysts at TD Cowen from $130.00 to $125.00 in a research note issued to investors on Tuesday, Benzinga reports. The brokerage presently has a "hold" rating on the credit services provider's stock. TD Cowen's target price indicates a potential upside of 0.13% from the stock's previous close.

NNI has been the topic of a number of other research reports. Weiss Ratings downgraded Nelnet from a "buy (b)" rating to a "hold (c+)" rating in a report on Wednesday, August 12th. Zacks Research downgraded Nelnet from a "hold" rating to a "strong sell" rating in a research report on Wednesday, July 8th. Two research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Nelnet presently has an average rating of "Reduce" and an average target price of $125.00.

Nelnet Price Performance

Shares of NYSE:NNI traded down $0.17 during midday trading on Tuesday, hitting $124.84. The stock had a trading volume of 16,945 shares, compared to its average volume of 133,345. The company's 50-day moving average price is $127.85 and its 200-day moving average price is $130.45. Nelnet has a fifty-two week low of $116.62 and a fifty-two week high of $144.38. The company has a quick ratio of 15.89, a current ratio of 15.89 and a debt-to-equity ratio of 1.94. The company has a market capitalization of $4.47 billion, a P/E ratio of 14.96 and a beta of 0.77.

Nelnet (NYSE:NNI - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The credit services provider reported $1.77 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.13 by ($0.36). Nelnet had a return on equity of 8.26% and a net margin of 14.35%.The firm had revenue of $410.01 million for the quarter, compared to analyst estimates of $419.92 million. As a group, equities research analysts predict that Nelnet will post 7.5 EPS for the current fiscal year.

Institutional Trading of Nelnet

Hedge funds and other institutional investors have recently modified their holdings of the stock. Sycale Advisors NY LLC lifted its stake in shares of Nelnet by 3.4% in the 4th quarter. Sycale Advisors NY LLC now owns 152,441 shares of the credit services provider's stock valued at $20,269,000 after acquiring an additional 5,080 shares during the last quarter. Bank of New York Mellon Corp grew its position in Nelnet by 8.3% during the 1st quarter. Bank of New York Mellon Corp now owns 81,435 shares of the credit services provider's stock worth $10,502,000 after acquiring an additional 6,266 shares during the last quarter. Guardian Wealth Management Inc. increased its holdings in Nelnet by 4.0% in the 2nd quarter. Guardian Wealth Management Inc. now owns 53,433 shares of the credit services provider's stock worth $7,124,000 after purchasing an additional 2,077 shares in the last quarter. Edgestream Partners L.P. increased its holdings in Nelnet by 47.9% in the 1st quarter. Edgestream Partners L.P. now owns 50,718 shares of the credit services provider's stock worth $6,541,000 after purchasing an additional 16,428 shares in the last quarter. Finally, Renaissance Technologies LLC raised its position in Nelnet by 58.9% in the first quarter. Renaissance Technologies LLC now owns 48,000 shares of the credit services provider's stock valued at $6,190,000 after purchasing an additional 17,800 shares during the last quarter. Institutional investors own 33.51% of the company's stock.

About Nelnet

Nelnet, Inc is an education-focused technology and financial services company headquartered in Lincoln, Nebraska. The company provides products and services that support students, families, schools, lenders and education-related organizations, with operations spanning student loan servicing, education payments, education technology and financial services.

Nelnet's education services business provides servicing and technology for federal and private student loans, including account management, repayment support and borrower communications.

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