Navient (NAVI) Rating Increased to Buy at Zacks Investment Research

Navient (NASDAQ:NAVI) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Monday. The brokerage currently has a $13.00 target price on the credit services provider’s stock. Zacks Investment Research‘s target price indicates a potential upside of 20.15% from the company’s previous close.

According to Zacks, “Shares of Navient have underperformed the industry so far this year. The company has an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters. The company remains well poised to benefit from the ongoing economic recovery and remains focused on leveraging its asset recovery & processing businesses. However, it continues to struggle with regulatory claims and litigation burden owing to its practices in handling large number of student loans. Also, unsustainable capital deployment activities remain a concern. Nevertheless, inorganic growth strategies to diversify product offerings and boost overall business encourage us. The company continues to deploy technology platform and digital marketing tools to attract originations that bodes well for its financials.”

NAVI has been the topic of a number of other research reports. ValuEngine downgraded Navient from a “hold” rating to a “sell” rating in a research note on Saturday, October 27th. Citigroup dropped their price objective on Navient from $20.00 to $18.00 and set a “buy” rating on the stock in a research note on Thursday, October 25th. BidaskClub upgraded Navient from a “strong sell” rating to a “sell” rating in a research note on Thursday, November 8th. Finally, Oppenheimer reiterated a “hold” rating on shares of Navient in a research note on Thursday, October 25th. Three analysts have rated the stock with a sell rating, three have issued a hold rating and four have given a buy rating to the stock. The company has an average rating of “Hold” and a consensus target price of $15.55.

Shares of NASDAQ NAVI opened at $10.82 on Monday. Navient has a twelve month low of $10.69 and a twelve month high of $15.02. The company has a market capitalization of $2.97 billion, a PE ratio of 6.04 and a beta of 2.11. The company has a current ratio of 19.74, a quick ratio of 19.74 and a debt-to-equity ratio of 25.59.

Navient (NASDAQ:NAVI) last announced its earnings results on Tuesday, October 23rd. The credit services provider reported $0.53 earnings per share for the quarter, topping analysts’ consensus estimates of $0.49 by $0.04. Navient had a return on equity of 13.43% and a net margin of 4.29%. The firm had revenue of $327.00 million for the quarter, compared to the consensus estimate of $310.17 million. During the same quarter in the previous year, the business earned $0.55 EPS. The company’s revenue was down 5.2% compared to the same quarter last year. On average, analysts forecast that Navient will post 1.97 EPS for the current fiscal year.

A number of institutional investors have recently bought and sold shares of NAVI. Texas Permanent School Fund lifted its stake in Navient by 151.3% in the second quarter. Texas Permanent School Fund now owns 170,781 shares of the credit services provider’s stock valued at $2,225,000 after purchasing an additional 102,824 shares during the last quarter. Aperio Group LLC lifted its stake in Navient by 1.5% in the second quarter. Aperio Group LLC now owns 353,942 shares of the credit services provider’s stock valued at $4,612,000 after purchasing an additional 5,291 shares during the last quarter. Alps Advisors Inc. lifted its stake in Navient by 5.0% in the second quarter. Alps Advisors Inc. now owns 3,816,609 shares of the credit services provider’s stock valued at $50,837,000 after purchasing an additional 183,010 shares during the last quarter. Los Angeles Capital Management & Equity Research Inc. purchased a new position in Navient in the second quarter valued at approximately $233,000. Finally, New Mexico Educational Retirement Board lifted its stake in Navient by 147.8% in the second quarter. New Mexico Educational Retirement Board now owns 62,000 shares of the credit services provider’s stock valued at $808,000 after purchasing an additional 36,984 shares during the last quarter. Institutional investors and hedge funds own 93.54% of the company’s stock.

Navient Company Profile

Navient Corporation provides asset management and business processing services to education, health care, and government clients at the federal, state, and local levels in the United States. The company operates in three segments: Federal Family Education Loan Program (FFELP) Loans, Private Education Loans, and Business Services.

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