Hsbc Holdings PLC Takes Position in Navient Corporation $NAVI

Key Points

• Hsbc Holdings PLC purchased 127,615 Navient shares worth approximately $1.09 million, representing 0.14% of the company. Other institutions also initiated positions, and institutional investors collectively own 97.14% of Navient.
• Navient reported quarterly EPS of $0.29, beating estimates of $0.20, while revenue of $150 million exceeded expectations. The company also declared a quarterly dividend of $0.16, implying a 6.7% annualized yield.
• Analyst sentiment remains cautious: Navient has an average “Reduce” rating, with five Hold and four Sell ratings, and an average price target of $9.14.

Hsbc Holdings PLC purchased a new position in shares of Navient Corporation (NASDAQ:NAVI - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 127,615 shares of the credit services provider's stock, valued at approximately $1,093,000. Hsbc Holdings PLC owned 0.14% of Navient at the end of the most recent reporting period.

A number of other hedge funds also recently bought and sold shares of the stock. PDT Partners LLC purchased a new stake in shares of Navient during the 2nd quarter worth $4,435,000. Legal & General Group Plc acquired a new stake in Navient in the second quarter valued at $1,295,000. The Manufacturers Life Insurance Company acquired a new stake in Navient in the second quarter valued at $165,000. Sanctuary Advisors LLC purchased a new stake in Navient during the 2nd quarter worth about $467,000. Finally, Landscape Capital Management L.L.C. purchased a new stake in Navient during the 2nd quarter worth about $2,530,000. Institutional investors and hedge funds own 97.14% of the company's stock.

Navient Trading Up 0.5%

NASDAQ NAVI opened at $9.51 on Tuesday. The stock has a market capitalization of $891.85 million, a P/E ratio of -19.02 and a beta of 1.18. Navient Corporation has a 52-week low of $7.33 and a 52-week high of $13.87. The firm has a 50-day moving average price of $8.77 and a 200 day moving average price of $8.57. The company has a quick ratio of 10.53, a current ratio of 10.53 and a debt-to-equity ratio of 16.73.

Navient (NASDAQ:NAVI - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The credit services provider reported $0.29 earnings per share for the quarter, beating analysts' consensus estimates of $0.20 by $0.09. The company had revenue of $150.00 million for the quarter, compared to analyst estimates of $142.87 million. Navient had a positive return on equity of 4.68% and a negative net margin of 1.64%.During the same quarter in the previous year, the company earned $0.20 EPS. Equities research analysts expect that Navient Corporation will post 0.76 EPS for the current year.

Navient Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Shareholders of record on Friday, September 4th will be given a $0.16 dividend. The ex-dividend date is Friday, September 4th. This represents a $0.64 annualized dividend and a yield of 6.7%. Navient's dividend payout ratio is presently -128.00%.

Analyst Ratings Changes

Several brokerages have recently weighed in on NAVI. TD Cowen restated a "sell" rating on shares of Navient in a research report on Friday, August 7th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Navient in a research report on Wednesday, June 24th. Finally, JPMorgan Chase & Co. cut their price target on shares of Navient from $9.50 to $8.00 and set a "neutral" rating on the stock in a research note on Monday, July 13th. Five investment analysts have rated the stock with a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Reduce" and an average price target of $9.14.

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.

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