Navient (NASDAQ:NAVI) Price Target Cut to $14.00 by Analysts at Morgan Stanley

Key Points

• Morgan Stanley has lowered its price target on Navient's stock from $15.00 to $14.00, maintaining an "equal weight" rating, indicating a potential upside of 9.12% from its current trading price.
• TD Cowen has downgraded Navient shares from "hold" to "strong sell," while several other brokerages have adjusted their price targets, reflecting a mix of ratings including three sell, six hold, and one strong buy.
• Navient reported earnings per share of $0.21 for the last quarter, missing analysts' expectations of $0.27, alongside revenue exceeding consensus estimates slightly at $156 million.

Navient (NASDAQ:NAVI - Get Free Report) had its price target cut by equities researchers at Morgan Stanley from $15.00 to $14.00 in a research note issued on Thursday,Benzinga reports. The firm currently has an "equal weight" rating on the credit services provider's stock. Morgan Stanley's price objective would suggest a potential upside of 9.72% from the stock's previous close.

Other equities analysts have also issued research reports about the stock. TD Cowen lowered shares of Navient from a "hold" rating to a "strong sell" rating in a report on Thursday, May 1st. Keefe, Bruyette & Woods lowered their target price on shares of Navient from $16.50 to $15.00 and set a "market perform" rating on the stock in a report on Thursday. Jefferies Financial Group lowered their target price on shares of Navient from $14.00 to $12.00 and set a "hold" rating on the stock in a report on Monday, April 21st. TD Securities upped their target price on shares of Navient from $11.00 to $12.00 and gave the stock a "sell" rating in a report on Thursday, May 1st. Finally, JPMorgan Chase & Co. upped their target price on shares of Navient from $12.50 to $15.50 and gave the stock a "neutral" rating in a report on Friday, July 11th. Three research analysts have rated the stock with a sell rating, six have assigned a hold rating and one has given a strong buy rating to the stock. According to MarketBeat.com, Navient presently has an average rating of "Hold" and an average target price of $13.56.

Navient Stock Up 0.8%

Shares of NASDAQ NAVI traded up $0.10 during trading on Thursday, hitting $12.76. 52,617 shares of the company traded hands, compared to its average volume of 805,324. The business's fifty day moving average is $13.99 and its 200 day moving average is $13.41. Navient 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 $1.29 billion, a price-to-earnings ratio of 41.20 and a beta of 1.37. 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 (NASDAQ:NAVI - Get Free Report) last announced its quarterly earnings data 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 net margin of 0.89% and a return on equity of 4.08%. The company had revenue of $156.00 million for the quarter, compared to analyst estimates of $156.20 million. During the same quarter in the prior year, the company posted $0.29 EPS. Equities research analysts predict that Navient will post 1.04 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Navient

A number of institutional investors have recently added to or reduced their stakes in the company. Orbis Allan Gray Ltd grew its position in shares of Navient by 29.7% during the 1st quarter. Orbis Allan Gray Ltd now owns 2,311,785 shares of the credit services provider's stock valued at $29,198,000 after acquiring an additional 528,716 shares during the period. American Century Companies Inc. lifted its stake in shares of Navient by 7.3% during the 1st quarter. American Century Companies Inc. now owns 1,954,896 shares of the credit services provider's stock valued at $24,690,000 after buying an additional 132,313 shares in the last quarter. Northern Trust Corp lifted its stake in shares of Navient by 14.6% during the 4th quarter. Northern Trust Corp now owns 1,567,466 shares of the credit services provider's stock valued at $20,832,000 after buying an additional 199,937 shares in the last quarter. Wellington Management Group LLP lifted its stake in Navient by 10.9% in the 1st quarter. Wellington Management Group LLP now owns 1,459,166 shares of the credit services provider's stock worth $18,429,000 after purchasing an additional 143,325 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its stake in Navient by 32.6% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 1,439,903 shares of the credit services provider's stock worth $18,186,000 after purchasing an additional 353,898 shares in the last quarter. 97.14% of the stock is owned by institutional investors.

About Navient

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.