Nelnet (NYSE:NNI) Shares Gap Up - Should You Buy?

Nelnet, Inc. (NYSE:NNI - Get Free Report)'s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $102.09, but opened at $107.45. Nelnet shares last traded at $106.96, with a volume of 9,600 shares.

Analyst Ratings Changes

Separately, StockNews.com raised shares of Nelnet from a "hold" rating to a "buy" rating in a research note on Tuesday, March 4th.

Nelnet Stock Up 4.6 %

The stock has a fifty day moving average of $111.29 and a two-hundred day moving average of $110.37. The company has a debt-to-equity ratio of 2.78, a current ratio of 31.47 and a quick ratio of 31.47. The firm has a market capitalization of $3.88 billion, a price-to-earnings ratio of 35.13 and a beta of 0.88.

Nelnet (NYSE:NNI - Get Free Report) last issued its quarterly earnings data on Thursday, February 27th. The credit services provider reported $1.44 EPS for the quarter, topping analysts' consensus estimates of $1.23 by $0.21. Nelnet had a return on equity of 3.78% and a net margin of 5.54%. The firm had revenue of $401.61 million during the quarter, compared to analyst estimates of $335.00 million. Sell-side analysts anticipate that Nelnet, Inc. will post 4.52 earnings per share for the current year.

Nelnet Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, March 14th. Stockholders of record on Friday, February 28th were issued a $0.28 dividend. The ex-dividend date was Friday, February 28th. This represents a $1.12 annualized dividend and a dividend yield of 1.05%. Nelnet's payout ratio is currently 22.40%.

Hedge Funds Weigh In On Nelnet

A number of large investors have recently bought and sold shares of the stock. Vanguard Group Inc. boosted its position in shares of Nelnet by 8.0% during the fourth quarter. Vanguard Group Inc. now owns 1,347,756 shares of the credit services provider's stock valued at $143,954,000 after purchasing an additional 99,885 shares in the last quarter. Farmers & Merchants Investments Inc. lifted its holdings in Nelnet by 1.5% in the first quarter. Farmers & Merchants Investments Inc. now owns 1,204,798 shares of the credit services provider's stock valued at $133,648,000 after acquiring an additional 17,271 shares during the period. Proficio Capital Partners LLC raised its holdings in Nelnet by 16,773.6% in the 4th quarter. Proficio Capital Partners LLC now owns 482,247 shares of the credit services provider's stock worth $482,000 after purchasing an additional 479,389 shares during the period. Geode Capital Management LLC lifted its stake in shares of Nelnet by 0.3% during the 4th quarter. Geode Capital Management LLC now owns 361,553 shares of the credit services provider's stock valued at $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% in the 4th quarter. Sycale Advisors NY LLC now owns 258,038 shares of the credit services provider's stock worth $27,561,000 after purchasing an additional 54,380 shares during the period. 33.51% of the stock is owned by hedge funds and other institutional investors.

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.

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