Navient (NASDAQ:NAVI) Releases Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• Earnings beat but profitability weak: Navient reported Q1 EPS of $0.20 versus the $0.19 consensus and revenue of $152.0M versus $143.4M, yet net margin was negative (−2.47%) and EPS declined from $0.25 year‑over‑year.
• Dividend and stock metrics: The company pays a quarterly $0.16 dividend (annualized $0.64, yield 6.8%), with shares trading near $9.38 and a market cap of about $881M (P/E negative at −11.37).
• Analyst sentiment and ownership: Analysts skew negative (MarketBeat average rating "Reduce" and average target $9.57, several underperform/sell ratings), while institutional investors own roughly 97% of the stock.

Navient (NASDAQ:NAVI - Get Free Report) issued its earnings results on Tuesday. The credit services provider reported $0.20 EPS for the quarter, topping analysts' consensus estimates of $0.19 by $0.01, FiscalAI reports. Navient had a positive return on equity of 4.70% and a negative net margin of 2.47%.The firm had revenue of $152.00 million for the quarter, compared to the consensus estimate of $143.40 million. During the same quarter in the prior year, the business earned $0.25 earnings per share.

Navient Price Performance

NAVI stock traded up $0.21 during mid-day trading on Wednesday, reaching $9.38. 781,836 shares of the company's stock were exchanged, compared to its average volume of 1,018,536. The stock's 50 day moving average is $8.51 and its 200 day moving average is $10.78. Navient has a 12-month low of $7.80 and a 12-month high of $16.07. The company has a market cap of $881.15 million, a price-to-earnings ratio of -11.37 and a beta of 1.27. The company has a debt-to-equity ratio of 16.94, a current ratio of 9.01 and a quick ratio of 9.01.

Navient Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, March 20th. Shareholders of record on Friday, March 6th were given a dividend of $0.16 per share. The ex-dividend date was Friday, March 6th. This represents a $0.64 dividend on an annualized basis and a yield of 6.8%. Navient's dividend payout ratio is currently -78.05%.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the company. Bank of America assumed coverage on Navient in a research note on Monday, April 20th. They issued an "underperform" rating and a $7.00 target price on the stock. Zacks Research upgraded Navient from a "strong sell" rating to a "hold" rating in a research report on Monday, March 30th. Barclays lowered their price target on Navient from $9.00 to $7.00 and set an "underweight" rating on the stock in a research report on Monday, April 6th. JPMorgan Chase & Co. lowered their price target on Navient from $10.50 to $8.50 and set a "neutral" rating on the stock in a research report on Thursday, April 9th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Navient in a research report on Friday, March 27th. Five analysts have rated the stock with a Hold rating and five have issued a Sell rating to the stock. According to MarketBeat, Navient has an average rating of "Reduce" and an average target price of $9.57.

Hedge Funds Weigh In On Navient

A number of hedge funds have recently made changes to their positions in NAVI. Kestra Advisory Services LLC acquired a new position in shares of Navient during the fourth quarter valued at approximately $44,000. PNC Financial Services Group Inc. raised 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 during the last quarter. Northwestern Mutual Wealth Management Co. raised 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 during the last quarter. Russell Investments Group Ltd. raised its holdings in shares of Navient by 77.0% during the second quarter. Russell Investments Group Ltd. now owns 7,766 shares of the credit services provider's stock valued at $109,000 after acquiring an additional 3,378 shares during the last quarter. Finally, Mercer Global Advisors Inc. ADV acquired a new position in shares of Navient during the third quarter valued at approximately $143,000. Institutional investors and hedge funds own 97.14% of the company's stock.

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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