Navient (NASDAQ:NAVI) Shares Gap Down After Earnings Miss

Navient Co. (NASDAQ:NAVI - Get Free Report)'s share price gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $14.75, but opened at $14.21. Navient shares last traded at $14.15, with a volume of 112,691 shares traded.

The credit services provider reported $0.25 earnings per share for the quarter, missing analysts' consensus estimates of $0.26 by ($0.01). Navient had a net margin of 1.71% and a return on equity of 8.62%.

Navient Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, December 20th. Investors of record on Friday, December 6th were issued a $0.16 dividend. This represents a $0.64 dividend on an annualized basis and a dividend yield of 4.65%. The ex-dividend date of this dividend was Friday, December 6th. Navient's payout ratio is 92.75%.

Analyst Ratings Changes

NAVI has been the subject of a number of recent analyst reports. StockNews.com upgraded Navient from a "hold" rating to a "buy" rating in a research report on Friday, November 1st. Seaport Res Ptn upgraded shares of Navient from a "hold" rating to a "strong-buy" rating in a report on Tuesday, January 21st. Barclays boosted their price target on shares of Navient from $10.00 to $11.00 and gave the company an "underweight" rating in a report on Tuesday, October 8th. TD Cowen decreased their target price on Navient from $14.00 to $13.00 and set a "sell" rating for the company in a research report on Friday, November 1st. Finally, Bank of America lowered their price target on Navient from $17.00 to $16.00 and set a "neutral" rating on the stock in a report on Tuesday, December 24th. Two research analysts have rated the stock with a sell rating, four have issued a hold rating, one has issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $14.58.

Insider Activity

In related news, EVP Stephen M. Hauber sold 10,000 shares of the business's stock in a transaction that occurred on Wednesday, November 6th. The stock was sold at an average price of $15.00, for a total value of $150,000.00. Following the completion of the sale, the executive vice president now owns 256,883 shares of the company's stock, valued at approximately $3,853,245. The trade was a 3.75 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 27.99% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Navient

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. KBC Group NV increased its stake in shares of Navient by 47.0% during the 3rd quarter. KBC Group NV now owns 4,355 shares of the credit services provider's stock worth $68,000 after purchasing an additional 1,392 shares during the last quarter. nVerses Capital LLC acquired a new position in Navient during the third quarter valued at approximately $87,000. Harbor Capital Advisors Inc. bought a new position in shares of Navient in the third quarter valued at approximately $95,000. Covestor Ltd lifted its stake in shares of Navient by 24.6% in the third quarter. Covestor Ltd now owns 7,360 shares of the credit services provider's stock worth $115,000 after buying an additional 1,455 shares during the last quarter. Finally, Paloma Partners Management Co bought a new stake in shares of Navient during the 3rd quarter worth $174,000. Institutional investors own 97.14% of the company's stock.

Navient Stock Down 3.5 %

The firm has a market capitalization of $1.48 billion, a price-to-earnings ratio of 19.96 and a beta of 1.43. The company has a debt-to-equity ratio of 16.59, a quick ratio of 9.49 and a current ratio of 9.49. The business's 50 day moving average is $14.20 and its 200-day moving average is $15.00.

Navient Company Profile

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.