TD Cowen Has Lowered Expectations for Nelnet (NYSE:NNI) Stock Price

Key Points

• TD Cowen cut its price target for Nelnet to $125 from $135 and maintained a Hold rating, implying 5.81% downside from the stock’s then-current price.
• Weiss Ratings also lowered its assessment to Hold; analysts’ overall consensus is “Reduce,” with a $125 target price.
• Nelnet’s latest quarterly results beat expectations, reporting earnings of $1.89 per share versus $1.83 forecast and revenue of $436.59 million versus $427.37 million expected.

Nelnet (NYSE:NNI - Get Free Report) had its target price lowered by research analysts at TD Cowen from $135.00 to $125.00 in a report issued on Monday, Benzinga reports. The firm currently has a "hold" rating on the credit services provider's stock. TD Cowen's target price would indicate a potential downside of 5.81% from the stock's current price.

Separately, Weiss Ratings lowered Nelnet from a "hold (c+)" rating to a "hold (c)" rating in a research note on Wednesday. Two analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Nelnet has an average rating of "Reduce" and a consensus target price of $125.00.

Nelnet Stock Performance

Shares of NYSE:NNI traded up $2.19 during midday trading on Monday, reaching $132.72. 32,644 shares of the company traded hands, compared to its average volume of 133,345. Nelnet has a 12 month low of $116.62 and a 12 month high of $144.38. The firm's fifty day moving average price is $125.45 and its two-hundred day moving average price is $129.96. 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 firm has a market capitalization of $4.75 billion, a price-to-earnings ratio of 17.55 and a beta of 0.78.

Nelnet (NYSE:NNI - Get Free Report) last announced its quarterly earnings results on Thursday, November 5th. The credit services provider reported $1.89 earnings per share for the quarter, beating the consensus estimate of $1.83 by $0.06. The firm had revenue of $436.59 million for the quarter, compared to analysts' expectations of $427.37 million. Nelnet had a return on equity of 7.15% and a net margin of 12.93%. On average, equities analysts expect that Nelnet will post 7.42 earnings per share for the current year.

Hedge Funds Weigh In On Nelnet

A number of institutional investors have recently made changes to their positions in NNI. Fifth Third Bancorp grew its position in Nelnet by 9.7% during the third quarter. Fifth Third Bancorp now owns 3,091 shares of the credit services provider's stock valued at $380,000 after acquiring an additional 274 shares during the last quarter. Pilgrim Partners Asia Pte Ltd lifted its holdings in shares of Nelnet by 7.1% in the 3rd quarter. Pilgrim Partners Asia Pte Ltd now owns 15,000 shares of the credit services provider's stock worth $1,846,000 after acquiring an additional 1,000 shares during the last quarter. D.A. Davidson & CO. lifted its holdings in shares of Nelnet by 1.1% in the 3rd quarter. D.A. Davidson & CO. now owns 24,826 shares of the credit services provider's stock worth $3,056,000 after acquiring an additional 265 shares during the last quarter. Signaturefd LLC lifted its holdings in shares of Nelnet by 424.6% in the 3rd quarter. Signaturefd LLC now owns 960 shares of the credit services provider's stock worth $118,000 after acquiring an additional 777 shares during the last quarter. Finally, NorthCrest Asset Manangement LLC boosted its stake in shares of Nelnet by 3.9% in the 3rd quarter. NorthCrest Asset Manangement LLC now owns 7,934 shares of the credit services provider's stock valued at $999,000 after purchasing an additional 299 shares in the last quarter. Institutional investors own 33.51% of the company's stock.

Nelnet Company Profile

Nelnet, Inc is a diversified financial services and education technology company headquartered in Lincoln, Nebraska. Founded in 1978, it initially focused on student loan servicing and has since expanded into services for borrowers, schools, and other organizations.

The company provides student loan servicing and related technology, as well as education services such as tuition and payment processing, school administration tools, and online learning resources. Its other businesses include banking and renewable energy services.

Nelnet primarily serves customers in the United States.

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