Critical Insights From Navient Analyst Ratings: What You Need To Know

During the last three months, 7 analysts shared their evaluations of Navient NAVI, revealing diverse outlooks from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $16.86, a high estimate of $18.00, and a low estimate of $16.00. A decline of 14.42% from the prior average price target is evident in the current average.

Breaking Down Analyst Ratings: A Detailed Examination

A clear picture of Navient's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Navient. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Navient compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Navient's stock. This analysis reveals shifts in analysts' expectations over time.

Capture valuable insights into Navient's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Navient analyst ratings.

Delving into Navient's Background

Navient Corp is a financial services company that provides education loan management and business processing services to education, healthcare, and government clients at the federal, state, and local levels. The company operates in Delaware, western New York, northern Pennsylvania, Indiana, Tennessee, Texas, and Virginia, among other locations. The company has three primary reportable business segments: Federal Education Loans, Consumer Lending and Business Processing. The company's fourth and other segment relates to financial results of the company's holding company, including activities related to repurchases of debt, corporate liquidity portfolio, and unallocated overhead and regulatory-related costs.

A Deep Dive into Navient's Financials

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Navient's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 8.21%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.

Net Margin: Navient's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 18.72%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Navient's ROE stands out, surpassing industry averages. With an impressive ROE of 2.71%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Navient's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.12%, the company may face hurdles in achieving optimal financial returns.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 20.55, caution is advised due to increased financial risk.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.