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Navient (NAVI) Stock Up on New Share Buyback Program
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Shares of Navient Corporation (NAVI - Free Report) gained more than 1% after the company announced a new share buyback program for up to $600 million of its outstanding common stock. The new share repurchase program will be effective from Jan 1, 2017 and does not carry an expiration date.
The latest move seems to be in line with the Wilmington-based company’s efforts to enhance shareholder value. Notably, during 2016, completing its previously announced share repurchase authorization program, Navient acquired 59.6 million shares of common stock for $755 million.
Given its decent cash generating capacities, Navient remains committed to increase shareholders’ wealth through dividend payments and share buybacks. Notably, in Jan 2015, the company declared a 7% hike in its quarterly dividend.
Navient – the loan management, servicing and asset recovery company formed through the strategic split of Sallie Mae in Apr 2014 – also remains focused on initiatives that lay the foundation for independent growth. Management continues to leverage on its processing businesses. For instance, this year, the company won a new multi-year contract in New Jersey as well as contracts in regions, including Arizona, Pennsylvania, California and Mississippi. Also, the company expanded its healthcare receivable services to new hospitals in New Hampshire, Pennsylvania, Maryland and Wisconsin.
Navient’s shares have gained 51.1% year to date, significantly outpacing the 20.3% growth for the Zacks categorized Consumer Loan industry. However, we see limited upside for the stock in the near term given the several challenges faced by the company, including escalating costs and regulatory issues. Further, the company faces revenue pressure, as following the 2010 reform law, Navient’s interest income on its Federal Family Education Loan Program (FFELP) portfolio and fee-based revenue from it are expected to gradually decrease as existing FFELP loans are paid down, refinanced or repaid following default by guarantors.
Currently, Navient carries a Zacks Rank #4 (Sell).
Stocks to Consider
Regional Management Corp. (RM - Free Report) : The Zacks Consensus Estimate for 2016 inched up 1% for both 2016 and 2017, to $2.03 per share and $2.68 per share, respectively, over the last 60 days. The company carries a Zacks Rank #2 (Buy).
LegacyTexas Financial Group Inc. : Over the last 60 days, the Zacks Consensus Estimate for the current year increased 7.7% to $2.09 per share and advanced 6.5% to $2.31 for 2017. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vantiv, Inc. : Over the last 30 days, the Zacks Consensus Estimate for the current year moved up 1.2% to $2.57 per share and climbed 1% to $2.93 for 2017. The company carries a Zacks Rank #2.
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Navient (NAVI) Stock Up on New Share Buyback Program
Shares of Navient Corporation (NAVI - Free Report) gained more than 1% after the company announced a new share buyback program for up to $600 million of its outstanding common stock. The new share repurchase program will be effective from Jan 1, 2017 and does not carry an expiration date.
The latest move seems to be in line with the Wilmington-based company’s efforts to enhance shareholder value. Notably, during 2016, completing its previously announced share repurchase authorization program, Navient acquired 59.6 million shares of common stock for $755 million.
Given its decent cash generating capacities, Navient remains committed to increase shareholders’ wealth through dividend payments and share buybacks. Notably, in Jan 2015, the company declared a 7% hike in its quarterly dividend.
Navient – the loan management, servicing and asset recovery company formed through the strategic split of Sallie Mae in Apr 2014 – also remains focused on initiatives that lay the foundation for independent growth. Management continues to leverage on its processing businesses. For instance, this year, the company won a new multi-year contract in New Jersey as well as contracts in regions, including Arizona, Pennsylvania, California and Mississippi. Also, the company expanded its healthcare receivable services to new hospitals in New Hampshire, Pennsylvania, Maryland and Wisconsin.
Navient’s shares have gained 51.1% year to date, significantly outpacing the 20.3% growth for the Zacks categorized Consumer Loan industry. However, we see limited upside for the stock in the near term given the several challenges faced by the company, including escalating costs and regulatory issues. Further, the company faces revenue pressure, as following the 2010 reform law, Navient’s interest income on its Federal Family Education Loan Program (FFELP) portfolio and fee-based revenue from it are expected to gradually decrease as existing FFELP loans are paid down, refinanced or repaid following default by guarantors.
Currently, Navient carries a Zacks Rank #4 (Sell).
Stocks to Consider
Regional Management Corp. (RM - Free Report) : The Zacks Consensus Estimate for 2016 inched up 1% for both 2016 and 2017, to $2.03 per share and $2.68 per share, respectively, over the last 60 days. The company carries a Zacks Rank #2 (Buy).
LegacyTexas Financial Group Inc. : Over the last 60 days, the Zacks Consensus Estimate for the current year increased 7.7% to $2.09 per share and advanced 6.5% to $2.31 for 2017. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vantiv, Inc. : Over the last 30 days, the Zacks Consensus Estimate for the current year moved up 1.2% to $2.57 per share and climbed 1% to $2.93 for 2017. The company carries a Zacks Rank #2.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks ? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>