Nelnet (NYSE:NNI) Shares Gap Up on Strong Earnings

Nelnet, Inc. (NYSE:NNI - Get Free Report) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $111.69, but opened at $117.00. Nelnet shares last traded at $116.07, with a volume of 2,257 shares changing hands.

The credit services provider reported $1.44 EPS for the quarter, topping analysts' consensus estimates of $1.23 by $0.21. The business had revenue of $401.61 million during the quarter, compared to analysts' expectations of $335.00 million. Nelnet had a net margin of 5.54% and a return on equity of 3.78%.

Nelnet Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, March 14th. Shareholders of record on Friday, February 28th will be issued a dividend of $0.28 per share. The ex-dividend date is Friday, February 28th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 0.94%. Nelnet's payout ratio is currently 22.40%.

Analyst Ratings Changes

Separately, StockNews.com upgraded Nelnet from a "hold" rating to a "buy" rating in a research report on Tuesday.

Hedge Funds Weigh In On Nelnet

Hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. raised its holdings in Nelnet by 8.0% in the 4th quarter. Vanguard Group Inc. now owns 1,347,756 shares of the credit services provider's stock valued at $143,954,000 after acquiring an additional 99,885 shares during the last quarter. Farmers & Merchants Investments Inc. grew its position in shares of Nelnet by 0.5% in the fourth quarter. Farmers & Merchants Investments Inc. now owns 1,187,527 shares of the credit services provider's stock valued at $126,840,000 after purchasing an additional 5,708 shares in the last quarter. Proficio Capital Partners LLC increased its holdings in shares of Nelnet by 16,773.6% in the fourth quarter. Proficio Capital Partners LLC now owns 482,247 shares of the credit services provider's stock valued at $482,000 after purchasing an additional 479,389 shares during the last quarter. Geode Capital Management LLC lifted its position in Nelnet by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 361,553 shares of the credit services provider's stock worth $38,627,000 after buying an additional 1,060 shares in the last quarter. Finally, Sycale Advisors NY LLC boosted its stake in Nelnet by 26.7% during the fourth quarter. Sycale Advisors NY LLC now owns 258,038 shares of the credit services provider's stock worth $27,561,000 after buying an additional 54,380 shares during the last quarter. 33.51% of the stock is owned by hedge funds and other institutional investors.

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Nelnet Trading Down 0.8 %

The company has a market capitalization of $4.33 billion, a PE ratio of 39.26 and a beta of 0.91. The company has a fifty day simple moving average of $109.87 and a 200-day simple moving average of $110.82. The company has a current ratio of 31.47, a quick ratio of 31.47 and a debt-to-equity ratio of 2.78.

About Nelnet

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.