Navient Corporation (NASDAQ:NAVI) Given Consensus Recommendation of "Reduce" by Brokerages

Key Points

• Analysts are cautious on Navient: The stock has a consensus recommendation of "Reduce" from nine brokerages, with four sell ratings and five hold ratings. The average 12-month price target is about $9.29.
• Shares were down and trade near key levels: Navient stock fell 2.8% and opened at $8.54, close to its 50-day average of $8.49 but well below its 200-day average of $10.66. The stock has ranged from $7.80 to $16.07 over the past year.
• Recent results beat expectations: Navient reported quarterly EPS of $0.20, topping estimates of $0.17, and revenue of $152.0 million, above the $141.47 million consensus. The company also pays a quarterly dividend of $0.16 per share, implying a 7.5% annualized yield.

Navient Corporation (NASDAQ:NAVI - Get Free Report) has earned an average recommendation of "Reduce" from the nine research firms that are covering the company, Marketbeat.com reports. Four analysts have rated the stock with a sell rating and five have issued a hold rating on the company. The average 12-month price target among brokers that have issued a report on the stock in the last year is $9.2857.

Several equities analysts recently issued reports on NAVI shares. Morgan Stanley reduced their price objective on shares of Navient from $12.00 to $9.00 and set an "equal weight" rating on the stock in a research note on Thursday, April 16th. Barclays upped their price objective on shares of Navient from $7.00 to $8.00 and gave the company an "underweight" rating in a research note on Thursday, April 30th. Wall Street Zen raised shares of Navient from a "sell" rating to a "hold" rating in a research note on Saturday, March 7th. Zacks Research raised shares of Navient from a "strong sell" rating to a "hold" rating in a research note on Monday, March 30th. Finally, Deutsche Bank Aktiengesellschaft reduced their price objective on shares of Navient from $15.00 to $9.00 and set a "hold" rating on the stock in a research note on Thursday, January 29th.

Navient Stock Down 2.8%

NAVI stock opened at $8.54 on Friday. The company's 50 day simple moving average is $8.49 and its 200-day simple moving average is $10.66. The firm has a market capitalization of $802.67 million, a PE ratio of -13.56 and a beta of 1.24. Navient has a 12 month low of $7.80 and a 12 month high of $16.07. The company has a debt-to-equity ratio of 16.49, a current ratio of 7.67 and a quick ratio of 7.67.

Navient (NASDAQ:NAVI - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The credit services provider reported $0.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.17 by $0.03. The business had revenue of $152.00 million for the quarter, compared to the consensus estimate of $141.47 million. Navient had a negative net margin of 1.94% and a positive return on equity of 4.39%. During the same quarter in the prior year, the firm posted $0.25 earnings per share. Equities analysts expect that Navient will post 0.71 earnings per share for the current fiscal year.

Navient Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 20th. Investors of record on Friday, March 6th were paid a dividend of $0.16 per share. The ex-dividend date of this dividend was Friday, March 6th. This represents a $0.64 annualized dividend and a dividend yield of 7.5%. Navient's dividend payout ratio is presently -101.59%.

Hedge Funds Weigh In On Navient

Several institutional investors and hedge funds have recently modified their holdings of NAVI. GAMMA Investing LLC raised its stake in Navient by 70.5% during the fourth quarter. GAMMA Investing LLC now owns 1,978 shares of the credit services provider's stock worth $26,000 after purchasing an additional 818 shares during the period. CWM LLC raised its stake in Navient by 79.0% during the third quarter. CWM LLC now owns 2,525 shares of the credit services provider's stock worth $33,000 after purchasing an additional 1,114 shares during the period. Kestra Advisory Services LLC purchased a new position in Navient during the fourth quarter worth approximately $44,000. PNC Financial Services Group Inc. raised its stake in Navient by 39.2% during the fourth quarter. PNC Financial Services Group Inc. now owns 4,228 shares of the credit services provider's stock worth $55,000 after purchasing an additional 1,191 shares during the period. Finally, Parallel Advisors LLC raised its stake in Navient by 325.6% during the first quarter. Parallel Advisors LLC now owns 5,005 shares of the credit services provider's stock worth $41,000 after purchasing an additional 3,829 shares during the period. Hedge funds and other institutional investors own 97.14% of the company's stock.

Navient Company Profile

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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