Navient (NASDAQ:NAVI) Issues FY 2025 Earnings Guidance

Key Points

• Navient has issued its FY 2025 earnings guidance with an expected EPS of 0.950-1.050, falling short of the consensus estimate of 1.084.
• The company recently declared a quarterly dividend of $0.16, resulting in an annualized dividend yield of 4.64%, despite a payout ratio of 128.00%.
• Analyst ratings for Navient show mixed opinions, with three analysts rating it as a sell and five assigning a hold, while the consensus price target is set at $13.71.

Navient (NASDAQ:NAVI - Get Free Report) updated its FY 2025 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 0.950-1.050 for the period, compared to the consensus estimate of 1.084. The company issued revenue guidance of -.

Analyst Ratings Changes

A number of equities analysts have issued reports on the stock. TD Cowen downgraded shares of Navient from a "hold" rating to a "strong sell" rating in a report on Thursday, May 1st. Morgan Stanley cut their price objective on shares of Navient from $15.00 to $14.00 and set an "equal weight" rating on the stock in a report on Thursday. Keefe, Bruyette & Woods cut their price objective on shares of Navient from $16.50 to $15.00 and set a "market perform" rating on the stock in a report on Thursday. JPMorgan Chase & Co. lifted their target price on Navient from $12.50 to $15.50 and gave the stock a "neutral" rating in a research note on Friday, July 11th. Finally, Jefferies Financial Group lowered their target price on Navient from $14.00 to $12.00 and set a "hold" rating on the stock in a research note on Monday, April 21st. Three equities research analysts have rated the stock with a sell rating, six have issued a hold rating and one has issued a strong buy rating to the company. According to data from MarketBeat, Navient presently has a consensus rating of "Hold" and an average price target of $13.56.

Navient Stock Performance

Navient stock traded down $0.28 during midday trading on Friday, reaching $12.66. The stock had a trading volume of 936,068 shares, compared to its average volume of 1,173,066. Navient has a 12 month low of $10.53 and a 12 month high of $16.97. The firm's 50-day moving average price is $13.99 and its 200 day moving average price is $13.41. The firm has a market capitalization of $1.26 billion, a PE ratio of 40.84 and a beta of 1.37. The company has a quick ratio of 9.94, a current ratio of 9.94 and a debt-to-equity ratio of 16.52.

Navient (NASDAQ:NAVI - Get Free Report) last posted its earnings results on Wednesday, July 30th. The credit services provider reported $0.21 earnings per share for the quarter, missing analysts' consensus estimates of $0.27 by ($0.06). The company had revenue of $156.00 million for the quarter, compared to analysts' expectations of $156.20 million. Navient had a net margin of 0.89% and a return on equity of 4.08%. During the same period in the previous year, the firm earned $0.29 EPS. As a group, research analysts predict that Navient will post 1.04 earnings per share for the current fiscal year.

Navient Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 20th. Shareholders of record on Friday, June 6th were issued a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a yield of 5.1%. The ex-dividend date of this dividend was Friday, June 6th. Navient's payout ratio is presently 206.45%.

Institutional Inflows and Outflows

An institutional investor recently raised its position in Navient stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Navient Corporation (NASDAQ:NAVI - Free Report) by 9.1% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 210,350 shares of the credit services provider's stock after acquiring an additional 17,483 shares during the quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC owned 0.21% of Navient worth $2,657,000 as of its most recent filing with the Securities & Exchange Commission. Hedge funds and other institutional investors own 97.14% of the company's stock.

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.