Navient (NASDAQ:NAVI) Announces Quarterly Earnings Results

Key Points

• Navient reported Q earnings of $0.20 EPS beating estimates of $0.17 and revenue of $152.0M vs. $143.4M expected, but EPS declined from $0.25 a year earlier and the company posted a negative net margin (-2.47%) despite a positive ROE (4.70%).
• The company paid a quarterly dividend of $0.16 (annualized $0.64), yielding 6.7%, though the dividend payout ratio is negative (-78.05%), which raises sustainability concerns.
• Analysts have trimmed ratings and targets, leaving a MarketBeat consensus of "Reduce" with a $9.57 price target while the stock trades around $9.51 (12‑month range $7.80–$16.07).

Navient (NASDAQ:NAVI - Get Free Report) released its quarterly earnings results on Wednesday. The credit services provider reported $0.20 EPS for the quarter, topping analysts' consensus estimates of $0.17 by $0.03, FiscalAI reports. The business had revenue of $152.00 million during the quarter, compared to analysts' expectations of $143.40 million. Navient had a negative net margin of 2.47% and a positive return on equity of 4.70%. During the same quarter in the previous year, the company earned $0.25 EPS.

Navient Price Performance

NAVI opened at $9.51 on Thursday. Navient has a 12-month low of $7.80 and a 12-month high of $16.07. The company has a market cap of $893.84 million, a price-to-earnings ratio of -11.60 and a beta of 1.27. The stock has a fifty day simple moving average of $8.51 and a two-hundred day simple moving average of $10.77. The company has a current ratio of 9.01, a quick ratio of 9.01 and a debt-to-equity ratio of 16.94.

Navient Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, March 20th. Stockholders of record on Friday, March 6th were given a $0.16 dividend. The ex-dividend date of this dividend was Friday, March 6th. This represents a $0.64 annualized dividend and a dividend yield of 6.7%. Navient's dividend payout ratio is currently -78.05%.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on NAVI. Morgan Stanley lowered 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 report on Thursday, April 16th. Wall Street Zen raised Navient from a "sell" rating to a "hold" rating in a research note on Saturday, March 7th. JPMorgan Chase & Co. reduced their target price on Navient from $10.50 to $8.50 and set a "neutral" rating on the stock in a research note on Thursday, April 9th. Deutsche Bank Aktiengesellschaft lowered their price target on Navient from $15.00 to $9.00 and set a "hold" rating on the stock in a research report on Thursday, January 29th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Navient in a report on Friday, March 27th. Five investment analysts have rated the stock with a Hold rating and five have given a Sell rating to the company's stock. According to MarketBeat, Navient currently has an average rating of "Reduce" and a consensus price target of $9.57.

Institutional Trading of Navient

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Kestra Advisory Services LLC purchased a new position in Navient during the fourth quarter valued at $44,000. PNC Financial Services Group Inc. increased its holdings in shares of 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 valued at $55,000 after acquiring an additional 1,191 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Navient by 3,045.4% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 5,127 shares of the credit services provider's stock valued at $67,000 after acquiring an additional 4,964 shares in the last quarter. Russell Investments Group Ltd. raised its position in shares of Navient by 77.0% in the 2nd quarter. Russell Investments Group Ltd. now owns 7,766 shares of the credit services provider's stock worth $109,000 after purchasing an additional 3,378 shares during the last quarter. Finally, Mercer Global Advisors Inc. ADV purchased a new position in shares of Navient in the 3rd quarter worth about $143,000. 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.