The Analyst Verdict: Navient In The Eyes Of 6 Experts

Across the recent three months, 6 analysts have shared their insights on Navient NAVI, expressing a variety of opinions spanning from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $16.33, a high estimate of $19.00, and a low estimate of $14.00. A 12.91% drop is evident in the current average compared to the previous average price target of $18.75.

Diving into Analyst Ratings: An In-Depth Exploration

The analysis of recent analyst actions sheds light on the perception of Navient by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Navient. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Navient compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

For valuable insights into Navient's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

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Discovering Navient: A Closer Look

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: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Over the 3 months period, Navient showcased positive performance, achieving a revenue growth rate of 8.21% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: Navient's net margin excels beyond industry benchmarks, reaching 18.72%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Navient's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.71%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Navient's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.12%, the company may encounter challenges in delivering satisfactory returns from its assets.

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.

The Significance of Analyst Ratings Explained

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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