Zacks Investment Research cut shares of Navient Corp. (NASDAQ:NAVI) from a hold rating to a sell rating in a research report report published on Tuesday morning.

According to Zacks, “Navient shares have outperformed the Zacks categorized Consumer Loan industry year to date. However, we see limited upside for the stock in the near term given the several challenges. The U.S. student loan industry is currently under heightened regulatory scrutiny over alleged anti-consumer practices. Navient, which services large number of student loans, is under regulatory claims and litigation burden owing to its practices in handling loans. Also, failure to access new loans or lack of alternative revenue areas may deter top-line growth. However, the company should benefit from the ongoing the economic recovery and its previous acquisitions of asset recovery and business process outsourcing firms.”

Analyst Recommendations for Navient Corp. (NASDAQ:NAVI)

Shares of Navient Corp. (NASDAQ:NAVI) opened at 17.19 on Tuesday. Navient Corp. has a 12-month low of $8.20 and a 12-month high of $17.95. The firm has a market cap of $5.21 billion, a price-to-earnings ratio of 7.05 and a beta of 2.37. The firm’s 50-day moving average is $14.88 and its 200-day moving average is $13.88.

Navient Corp. (NASDAQ:NAVI) last announced its earnings results on Tuesday, October 18th. The company reported $0.50 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.48 by $0.02. Navient Corp. had a net margin of 16.31% and a return on equity of 16.50%. The firm had revenue of $405 million for the quarter, compared to analyst estimates of $391.75 million. During the same quarter in the prior year, the business posted $0.47 EPS. The business’s revenue was down 12.0% compared to the same quarter last year. Analysts predict that Navient Corp. will post $1.83 earnings per share for the current fiscal year.

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The company also recently declared a quarterly dividend, which will be paid on Friday, December 16th. Stockholders of record on Friday, December 2nd will be issued a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a dividend yield of 3.72%. The ex-dividend date of this dividend is Wednesday, November 30th. Navient Corp.’s dividend payout ratio (DPR) is presently 26.34%.

Hedge funds have recently modified their holdings of the company. Thrivent Financial for Lutherans purchased a new stake in shares of Navient Corp. during the second quarter worth $121,000. Balasa Dinverno & Foltz LLC purchased a new stake in shares of Navient Corp. during the second quarter worth $122,000. IFP Advisors Inc increased its stake in shares of Navient Corp. by 25.9% in the second quarter. IFP Advisors Inc now owns 10,844 shares of the company’s stock worth $130,000 after buying an additional 2,232 shares during the period. Private Advisor Group LLC purchased a new stake in shares of Navient Corp. during the second quarter worth $133,000. Finally, Toronto Dominion Bank increased its stake in shares of Navient Corp. by 397.4% in the third quarter. Toronto Dominion Bank now owns 9,376 shares of the company’s stock worth $135,000 after buying an additional 7,491 shares during the period. 94.08% of the stock is owned by institutional investors.

Navient Corp. Company Profile

Navient Corporation is a loan management, servicing and asset recovery company. The Company holds the portfolio of education loans insured or guaranteed under the Federal Family Education Loan Program (FFELP), as well as the portfolio of Private Education Loans. FFELP Loans are insured or guaranteed by state based on guaranty agreements among the United States Department of Education (ED) and these agencies.

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