Vanguard Group Inc. Raises Stake in Nelnet, Inc. $NNI

Key Points

• Vanguard Group Inc. increased its stake in Nelnet, Inc. by 13.9% during the first quarter, owning approximately 4.23% of the company by the end of the reporting period.
• Wall Street analysts have upgraded Nelnet from a "hold" rating to a "strong buy" rating, indicating a positive outlook for the company's future performance.
• Nelnet recently declared a quarterly dividend of $0.30 per share, up from a previous dividend of $0.28, reflecting a commitment to returning value to shareholders.

Vanguard Group Inc. grew its stake in Nelnet, Inc. (NYSE:NNI - Free Report) by 13.9% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 1,535,569 shares of the credit services provider's stock after purchasing an additional 187,813 shares during the period. Vanguard Group Inc. owned about 4.23% of Nelnet worth $170,341,000 at the end of the most recent quarter.

Other hedge funds have also bought and sold shares of the company. KBC Group NV purchased a new stake in Nelnet in the 1st quarter worth approximately $32,000. Sterling Capital Management LLC raised its stake in shares of Nelnet by 796.0% during the 4th quarter. Sterling Capital Management LLC now owns 448 shares of the credit services provider's stock worth $48,000 after buying an additional 398 shares during the period. Blue Trust Inc. raised its stake in shares of Nelnet by 292.1% during the 1st quarter. Blue Trust Inc. now owns 698 shares of the credit services provider's stock worth $77,000 after buying an additional 520 shares during the period. Man Group plc acquired a new position in shares of Nelnet during the 4th quarter worth approximately $202,000. Finally, Dark Forest Capital Management LP acquired a new position in shares of Nelnet during the 4th quarter worth approximately $228,000. Hedge funds and other institutional investors own 33.51% of the company's stock.

Nelnet Price Performance

NYSE NNI traded up $0.17 during mid-day trading on Tuesday, hitting $129.27. The stock had a trading volume of 133,319 shares, compared to its average volume of 72,736. The firm's 50 day moving average is $123.00 and its 200 day moving average is $115.78. Nelnet, Inc. has a twelve month low of $98.15 and a twelve month high of $131.06. The company has a debt-to-equity ratio of 2.27, a current ratio of 29.42 and a quick ratio of 29.41. The stock has a market capitalization of $4.68 billion, a price-to-earnings ratio of 14.32 and a beta of 0.90.

Nelnet (NYSE:NNI - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The credit services provider reported $5.05 EPS for the quarter, beating the consensus estimate of $1.91 by $3.14. Nelnet had a return on equity of 10.09% and a net margin of 14.86%.The firm had revenue of $540.61 million during the quarter, compared to the consensus estimate of $376.40 million. Equities research analysts forecast that Nelnet, Inc. will post 4.52 earnings per share for the current fiscal year.

Nelnet Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd will be issued a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 0.9%. The ex-dividend date is Tuesday, September 2nd. This is an increase from Nelnet's previous quarterly dividend of $0.28. Nelnet's dividend payout ratio (DPR) is currently 12.40%.

Nelnet announced that its Board of Directors has initiated a stock buyback plan on Thursday, May 8th that authorizes the company to repurchase 5,000,000 shares. This repurchase authorization authorizes the credit services provider to repurchase shares of its stock through open market purchases. Stock repurchase plans are often an indication that the company's leadership believes its shares are undervalued.

Analyst Ratings Changes

Separately, Wall Street Zen raised Nelnet from a "hold" rating to a "strong-buy" rating in a research note on Saturday, August 9th.

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.