Hsbc Holdings PLC Increases Stake in Navient Corporation $NAVI

Key Points

• Hsbc Holdings PLC has increased its stake in Navient Corporation by 31.5%, now owning 163,995 shares valued at approximately $2,068,000.
• Navient recently announced a quarterly dividend of $0.16 per share, yielding 4.7%, with a payout ratio of 206.45%.
• The company reported earnings of $0.21 per share for the last quarter, missing the consensus estimate of $0.27 by $0.06.

Hsbc Holdings PLC boosted its stake in shares of Navient Corporation (NASDAQ:NAVI - Free Report) by 31.5% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 163,995 shares of the credit services provider's stock after acquiring an additional 39,315 shares during the quarter. Hsbc Holdings PLC owned 0.16% of Navient worth $2,068,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of the stock. Wells Fargo & Company MN increased its position in shares of Navient by 13.9% in the fourth quarter. Wells Fargo & Company MN now owns 74,148 shares of the credit services provider's stock valued at $985,000 after buying an additional 9,024 shares in the last quarter. Raymond James Financial Inc. purchased a new stake in shares of Navient in the fourth quarter valued at approximately $167,000. First Trust Advisors LP increased its position in shares of Navient by 5.3% in the fourth quarter. First Trust Advisors LP now owns 229,544 shares of the credit services provider's stock valued at $3,051,000 after buying an additional 11,647 shares in the last quarter. Price T Rowe Associates Inc. MD increased its position in shares of Navient by 6.4% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 79,960 shares of the credit services provider's stock valued at $1,063,000 after buying an additional 4,815 shares in the last quarter. Finally, Nebula Research & Development LLC purchased a new stake in shares of Navient in the fourth quarter valued at approximately $296,000. 97.14% of the stock is currently owned by hedge funds and other institutional investors.

Navient Price Performance

Shares of NASDAQ NAVI opened at $13.59 on Thursday. The company has a debt-to-equity ratio of 16.52, a quick ratio of 9.94 and a current ratio of 9.94. Navient Corporation has a fifty-two week low of $10.53 and a fifty-two week high of $16.97. The firm has a market capitalization of $1.35 billion, a PE ratio of 43.84 and a beta of 1.37. The stock's 50-day simple moving average is $13.80 and its 200-day simple moving average is $13.28.

Navient (NASDAQ:NAVI - Get Free Report) last issued its earnings results on Wednesday, July 30th. The credit services provider reported $0.21 earnings per share for the quarter, missing the consensus estimate of $0.27 by ($0.06). Navient had a return on equity of 4.08% and a net margin of 0.89%.The business had revenue of $156.00 million for the quarter, compared to analyst estimates of $156.20 million. During the same period last year, the business posted $0.29 EPS. Navient has set its FY 2025 guidance at 0.950-1.050 EPS. As a group, equities research analysts forecast that Navient Corporation will post 1.04 EPS for the current fiscal year.

Navient Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 19th. Stockholders of record on Friday, September 5th will be given a dividend of $0.16 per share. This represents a $0.64 annualized dividend and a dividend yield of 4.7%. The ex-dividend date of this dividend is Friday, September 5th. Navient's dividend payout ratio (DPR) is 206.45%.

Wall Street Analyst Weigh In

NAVI has been the subject of a number of recent analyst reports. TD Cowen cut Navient from a "hold" rating to a "strong sell" rating in a research report on Thursday, May 1st. TD Securities increased their target price on Navient from $11.00 to $12.00 and gave the stock a "sell" rating in a research note on Thursday, May 1st. Morgan Stanley decreased their target price on Navient from $15.00 to $14.00 and set an "equal weight" rating on the stock in a research note on Thursday, July 31st. Keefe, Bruyette & Woods decreased their target price on Navient from $16.50 to $15.00 and set a "market perform" rating on the stock in a research note on Thursday, July 31st. Finally, JPMorgan Chase & Co. increased their price target on Navient from $12.50 to $15.50 and gave the company a "neutral" rating in a research report on Friday, July 11th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, Navient presently has a consensus rating of "Reduce" and an average target price of $13.56.

Navient Company Profile

Navient Corporation provides technology-enabled education finance and business processing solutions for education, health care, and government clients in the United States. It operates through three segments: Federal Education Loans, Consumer Lending, and Business Processing. The company owns Federal Family Education Loan Program (FFELP) loans that are insured or guaranteed by state or not-for-profit agencies; and performs servicing on its portfolios, as well as federal education loans held by other institutions.

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