XTX Topco Ltd Takes $384,000 Position in Nelnet, Inc. (NYSE:NNI)

Key Points

• XTX Topco Ltd acquired a new stake in Nelnet, Inc., purchasing 3,460 shares valued at approximately $384,000 in the first quarter of this year.
• Nelnet recently received an upgrade from Wall Street Zen, changing its rating from "hold" to "strong-buy," indicating increased confidence in the company's outlook.
• The company also announced a quarterly dividend increase from $0.28 to $0.30, reflecting a positive financial position and a commitment to returning value to shareholders.

XTX Topco Ltd purchased a new position in Nelnet, Inc. (NYSE:NNI - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 3,460 shares of the credit services provider's stock, valued at approximately $384,000.

Several other hedge funds have also recently modified their holdings of NNI. Sycale Advisors NY LLC lifted its stake in shares of Nelnet by 26.7% during the 4th quarter. Sycale Advisors NY LLC now owns 258,038 shares of the credit services provider's stock valued at $27,561,000 after buying an additional 54,380 shares in the last quarter. JPMorgan Chase & Co. grew its stake in Nelnet by 30.7% during the fourth quarter. JPMorgan Chase & Co. now owns 172,480 shares of the credit services provider's stock valued at $18,423,000 after acquiring an additional 40,476 shares in the last quarter. GAMMA Investing LLC grew its stake in Nelnet by 13,657.1% during the first quarter. GAMMA Investing LLC now owns 34,943 shares of the credit services provider's stock valued at $3,876,000 after acquiring an additional 34,689 shares in the last quarter. Western Standard LLC purchased a new position in Nelnet during the fourth quarter valued at $2,614,000. Finally, Farmers & Merchants Investments Inc. grew its stake in Nelnet by 1.5% during the first quarter. Farmers & Merchants Investments Inc. now owns 1,204,798 shares of the credit services provider's stock valued at $133,648,000 after acquiring an additional 17,271 shares in the last quarter. Hedge funds and other institutional investors own 33.51% of the company's stock.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen raised shares of Nelnet from a "hold" rating to a "strong-buy" rating in a research note on Saturday.

Nelnet Trading Up 1.1%

NYSE NNI traded up $1.41 on Wednesday, hitting $128.35. 16,507 shares of the stock were exchanged, compared to its average volume of 65,548. The company has a debt-to-equity ratio of 2.27, a quick ratio of 29.41 and a current ratio of 29.42. The stock has a fifty day moving average price of $120.29 and a two-hundred day moving average price of $114.63. The firm has a market capitalization of $4.66 billion, a P/E ratio of 14.26 and a beta of 0.90. Nelnet, Inc. has a 52-week low of $98.15 and a 52-week high of $130.41.

Nelnet (NYSE:NNI - Get Free Report) last released its earnings results on Wednesday, August 6th. The credit services provider reported $5.05 earnings per share for the quarter, topping analysts' consensus estimates of $1.91 by $3.14. Nelnet had a return on equity of 10.09% and a net margin of 14.86%. The business had revenue of $540.61 million for the quarter, compared to analyst estimates of $376.40 million. Research analysts forecast that Nelnet, Inc. will post 4.52 EPS for the current fiscal year.

Nelnet announced that its Board of Directors has authorized a stock buyback program on Thursday, May 8th that permits the company to repurchase 5,000,000 shares. This repurchase authorization permits the credit services provider to purchase shares of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's management believes its shares are undervalued.

Nelnet Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 16th. Stockholders of record on Tuesday, September 2nd will be given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 0.9%. This is a boost from Nelnet's previous quarterly dividend of $0.28. The ex-dividend date of this dividend is Tuesday, September 2nd. Nelnet's dividend payout ratio is 12.40%.

Nelnet Company Profile

Nelnet, Inc engages in loan servicing, communications, education technology, services, and payment processing businesses worldwide. The Loan Servicing and Systems segment provides loan conversion, application processing, borrower updates, customer service, payment processing, due diligence procedures, funds management reconciliation, and claim processing services.