Nelnet (NYSE:NNI) Hits New 1-Year High Following Earnings Beat

Key Points

• Nelnet's stock price reached a new 52-week high at $128.96 after a strong earnings report, closing at $126.06 with significant trading volume.
• The company reported $5.05 earnings per share (EPS), significantly exceeding analysts' estimates of $1.91, along with a quarterly revenue of $540.61 million compared to expectations of $376.40 million.
• Nelnet's board approved a stock repurchase program allowing the buyback of 5 million shares, indicating confidence in the company's current stock valuation.

Nelnet, Inc. (NYSE:NNI - Get Free Report)'s stock price reached a new 52-week high on Thursday following a stronger than expected earnings report. The stock traded as high as $128.96 and last traded at $126.06, with a volume of 5787 shares traded. The stock had previously closed at $125.81.

The credit services provider reported $5.05 earnings per share for the quarter, topping analysts' consensus estimates of $1.91 by $3.14. The business had revenue of $540.61 million for the quarter, compared to analyst estimates of $376.40 million. Nelnet had a return on equity of 10.09% and a net margin of 14.86%.

Nelnet Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd will be given a dividend of $0.30 per share. The ex-dividend date is Tuesday, September 2nd. This is a boost from Nelnet's previous quarterly dividend of $0.28. This represents a $1.20 annualized dividend and a yield of 1.0%. Nelnet's dividend payout ratio (DPR) is presently 12.40%.

Nelnet declared that its board has approved a share buyback program on Thursday, May 8th that authorizes the company to repurchase 5,000,000 shares. This repurchase authorization authorizes the credit services provider to buy shares of its stock through open market purchases. Shares repurchase programs are generally an indication that the company's board of directors believes its shares are undervalued.

Institutional Trading of Nelnet

Several institutional investors and hedge funds have recently made changes to their positions in NNI. Harbor Capital Advisors Inc. increased its stake in Nelnet by 14.5% in the second quarter. Harbor Capital Advisors Inc. now owns 772 shares of the credit services provider's stock valued at $94,000 after acquiring an additional 98 shares during the last quarter. Inspire Investing LLC lifted its stake in Nelnet by 4.0% during the second quarter. Inspire Investing LLC now owns 3,236 shares of the credit services provider's stock worth $392,000 after purchasing an additional 123 shares during the last quarter. MetLife Investment Management LLC boosted its holdings in shares of Nelnet by 1.8% in the 4th quarter. MetLife Investment Management LLC now owns 8,510 shares of the credit services provider's stock worth $909,000 after purchasing an additional 151 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Nelnet by 1.7% in the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 11,395 shares of the credit services provider's stock worth $1,217,000 after purchasing an additional 188 shares in the last quarter. Finally, Ameritas Advisory Services LLC bought a new position in shares of Nelnet during the 2nd quarter valued at about $29,000. Hedge funds and other institutional investors own 33.51% of the company's stock.

Nelnet Trading Down 1.9%

The stock has a fifty day moving average of $119.94 and a two-hundred day moving average of $114.40. The company has a market capitalization of $4.47 billion, a PE ratio of 13.64 and a beta of 0.90. The company has a current ratio of 29.42, a quick ratio of 34.08 and a debt-to-equity ratio of 2.27.

Nelnet Company Profile

Nelnet, Inc engages in loan servicing, communications, education technology, services, and payment processing businesses worldwide. The Loan Servicing and Systems segment provides loan conversion, application processing, borrower updates, customer service, payment processing, due diligence procedures, funds management reconciliation, and claim processing services.