Last Updated: 18 Sep 2024
Executive Summary
Navient Corp. (NAVI) is a leading provider of education loan management and business processing solutions in the United States. The company has a market capitalization of $1.75 billion and is currently trading at $16 per share. Navient's financial performance has been mixed in recent quarters, with revenue and earnings declining year-over-year. However, the company's fundamentals remain strong, with a solid balance sheet and a growing dividend. Analysts are generally positive on Navient's long-term prospects, with a consensus target price of $14.14.
Company Overview
Navient Corp. was founded in 2014 as a spin-off from Sallie Mae. The company provides education loan management services to federal, state, and local governments, as well as to private lenders. Navient also provides business processing solutions to a variety of industries, including healthcare, insurance, and financial services. The company is headquartered in Wilmington, Delaware, and employs over 4,000 people.
Fundamental Analysis
Navient Corp.'s financial performance has been mixed in recent quarters. Revenue declined by 0.21% year-over-year in the most recent quarter, while earnings per share declined by 0.385%. However, the company's fundamentals remain strong. Navient has a solid balance sheet, with $1.6 billion in cash and equivalents and $2.1 billion in total debt. The company also has a growing dividend, which currently yields 0.04%.
Technical Analysis
Navient Corp.'s stock price has been trending lower in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, indicating that the stock is oversold.
Short Term Outlook
Navient Corp.'s stock price is likely to remain under pressure in the short term. The company's financial performance has been mixed in recent quarters, and the technical indicators are bearish. However, the company's fundamentals remain strong, and the stock is trading at a relatively low valuation.
Long Term Outlook
Analysts are generally positive on Navient Corp.'s long-term prospects. The company is a leader in the education loan management industry, and it has a growing business in business processing solutions. Navient also has a solid balance sheet and a growing dividend. The company's stock price is likely to recover in the long term, as the market recognizes the company's strong fundamentals.
Analyst Recommendations
Analysts have a consensus target price of $14.14 for Navient Corp. Seven analysts have a hold rating on the stock, while two analysts have a sell rating. No analysts have a strong buy or buy rating on the stock.
