Zacks Research Downgrades Nelnet (NYSE:NNI) to Strong Sell

Key Points

• Zacks Research downgraded Nelnet from hold to strong sell, signaling a more bearish outlook on the stock.
• Sentiment among analysts is mixed: Weiss Ratings recently upgraded Nelnet to buy, while MarketBeat data shows an overall hold rating with an average price target of $140.
• Nelnet’s latest earnings report missed expectations, with EPS of $1.94 versus the $2.66 consensus and revenue of $419.06 million below estimates.

Nelnet (NYSE:NNI - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Wednesday,Zacks.com reports.

Separately, Weiss Ratings upgraded Nelnet from a "hold (c)" rating to a "buy (b)" rating in a research report on Friday, May 1st. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $140.00.

Nelnet Trading Up 0.4%

Shares of NNI opened at $132.37 on Wednesday. The stock has a fifty day moving average of $130.86 and a two-hundred day moving average of $132.05. The company has a debt-to-equity ratio of 2.14, a quick ratio of 24.07 and a current ratio of 24.07. The company has a market capitalization of $4.76 billion, a PE ratio of 11.53 and a beta of 0.78. Nelnet has a fifty-two week low of $116.62 and a fifty-two week high of $144.38.

Nelnet (NYSE:NNI - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The credit services provider reported $1.94 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.66 by ($0.72). The business had revenue of $419.06 million for the quarter, compared to analyst estimates of $443.84 million. Nelnet had a return on equity of 11.73% and a net margin of 18.45%. As a group, analysts forecast that Nelnet will post 8.18 EPS for the current year.

Institutional Trading of Nelnet

Institutional investors have recently made changes to their positions in the stock. AQR Capital Management LLC raised its position in shares of Nelnet by 20.9% in the 1st quarter. AQR Capital Management LLC now owns 8,575 shares of the credit services provider's stock worth $951,000 after buying an additional 1,485 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in Nelnet by 2.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 11,694 shares of the credit services provider's stock valued at $1,297,000 after acquiring an additional 299 shares during the period. Jones Financial Companies Lllp grew its position in Nelnet by 1,246.0% during the first quarter. Jones Financial Companies Lllp now owns 3,365 shares of the credit services provider's stock valued at $373,000 after acquiring an additional 3,115 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Nelnet by 7.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 58,415 shares of the credit services provider's stock worth $6,480,000 after acquiring an additional 3,923 shares during the last quarter. Finally, Jane Street Group LLC increased its stake in Nelnet by 583.3% during the first quarter. Jane Street Group LLC now owns 16,023 shares of the credit services provider's stock worth $1,777,000 after acquiring an additional 13,678 shares during the last quarter. 33.51% of the stock is owned by hedge funds and other institutional investors.

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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