Nelnet (NYSE:NNI) Sees Large Volume Increase - Here's Why

Key Points

• Zacks Research upgraded Nelnet to a Strong Buy while Weiss Ratings and TD Cowen remain on Hold, leaving a MarketBeat consensus of Moderate Buy with an average price target of $140.00.
• Nelnet reported $1.56 EPS for the quarter, missing estimates by $0.07 while beating revenue expectations at $392.8M; the company trades at a P/E of 11.94 with a market cap of $5.04B and analysts forecast roughly 9.2 EPS for the fiscal year.
• Nelnet recently paid a quarterly dividend of $0.33 (annualized $1.32) for a 0.9% yield and maintains a low payout ratio of about 11.2%.

Nelnet, Inc. (NYSE:NNI - Get Free Report) shares saw an uptick in trading volume on Thursday . 91,442 shares traded hands during trading, a decline of 29% from the previous session's volume of 128,144 shares.The stock last traded at $139.0810 and had previously closed at $139.81.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on NNI. Zacks Research upgraded shares of Nelnet from a "hold" rating to a "strong-buy" rating in a research note on Monday, January 12th. Weiss Ratings restated a "hold (c)" rating on shares of Nelnet in a research note on Friday, April 17th. Finally, TD Cowen restated a "hold" rating on shares of Nelnet in a research note on Thursday, January 8th. One equities research analyst has rated the stock with a Strong Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $140.00.

Nelnet Price Performance

The company has a debt-to-equity ratio of 2.18, a current ratio of 28.27 and a quick ratio of 28.27. The company's 50 day moving average is $131.22 and its 200 day moving average is $131.50. The stock has a market cap of $5.04 billion, a price-to-earnings ratio of 11.94 and a beta of 0.81.

Nelnet (NYSE:NNI - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The credit services provider reported $1.56 EPS for the quarter, missing the consensus estimate of $1.63 by ($0.07). Nelnet had a net margin of 18.99% and a return on equity of 12.43%. The company had revenue of $392.76 million during the quarter, compared to analyst estimates of $382.00 million. Research analysts forecast that Nelnet, Inc. will post 9.2 earnings per share for the current fiscal year.

Nelnet Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 13th. Investors of record on Friday, February 27th were paid a $0.33 dividend. The ex-dividend date was Friday, February 27th. This represents a $1.32 annualized dividend and a dividend yield of 0.9%. Nelnet's dividend payout ratio (DPR) is 11.21%.

Hedge Funds Weigh In On Nelnet

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. JPMorgan Chase & Co. raised its position in Nelnet by 7.5% during the third quarter. JPMorgan Chase & Co. now owns 185,029 shares of the credit services provider's stock worth $23,199,000 after acquiring an additional 12,941 shares during the last quarter. Wedge Capital Management L L P NC acquired a new position in Nelnet during the third quarter worth about $1,086,000. SG Americas Securities LLC acquired a new position in Nelnet during the fourth quarter worth about $1,594,000. Pilgrim Partners Asia Pte Ltd acquired a new position in Nelnet during the third quarter worth about $1,505,000. Finally, American Century Companies Inc. raised its position in Nelnet by 28.9% during the third quarter. American Century Companies Inc. now owns 184,316 shares of the credit services provider's stock worth $23,110,000 after acquiring an additional 41,302 shares during the last quarter. Institutional investors and hedge funds own 33.51% of the company's stock.

Nelnet Company Profile

Nelnet, Inc NYSE: NNI is a diversified education services company founded in 1978 and headquartered in Lincoln, Nebraska. Originally established as the National Education Loan Network by Michael S. Dunlap, the company has grown into a prominent provider of student loan servicing and education finance solutions in the United States.

At the core of Nelnet's business is student loan servicing, where it administers and manages federal and private education loans on behalf of borrowers and lending partners.

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