Navient Corp (NASDAQ:NAVI) Executive Vice President and Chief Administrative Officer, Stephen M. Hauber, disclosed a recent sale of company stock totaling $150,000. According to the SEC filing, Hauber sold 10,000 shares at a price of $15.00 per share on November 6, 2024. Following this transaction, Hauber retains ownership of 256,883 shares, including dividend equivalent rights associated with his restricted stock units. This transaction was executed under a pre-established Rule 10b5-1 trading plan, which Hauber entered into on July 26, 2024.
In other recent news, Navient Corporation disclosed mixed financial outcomes for the third quarter. The company reported a GAAP EPS loss of $0.02, yet showcased a robust core EPS of $1.45. Despite the earnings loss, Navient exhibited substantial year-over-year growth in loan originations, reaching $1.37 billion, a 39% increase. These developments follow Navient's third-quarter earnings report, which revealed a Core EPS excluding special items of $0.28, falling short of TD Cowen's estimate but surpassing the Financial Sector consensus.
Navient's strategic actions, including a significant transformation via outsourcing of loan servicing and a settlement with the Consumer Financial Protection Bureau (CFPB), were key talking points. Additionally, Navient finalized the sale of its healthcare business, contributing $369 million to its financials. The company aims to reduce corporate overhead expenses to below $200 million annually and has plans to invest its $1.1 billion in cash, reduce debt, and distribute to shareholders.
On the downside, recovery values for private student loans have declined, influencing recovery rates, and late-stage delinquencies have seen an increase. TD Cowen maintained a Sell rating on Navient, reducing the price target from $14.00 to $13.00 following these developments. These are among the recent developments shaping the company's current position.
InvestingPro Insights
As Navient Corp's Executive Vice President Stephen M. Hauber sells shares, investors may benefit from additional context provided by InvestingPro data. Navient's current market capitalization stands at $1.64 billion, with a price-to-earnings ratio of 21.92. This valuation metric is particularly interesting when compared to the company's price-to-book ratio of 0.61, suggesting the stock may be undervalued relative to its book value.
An InvestingPro Tip highlights that management has been aggressively buying back shares, which could be seen as a vote of confidence in the company's future prospects, despite the recent insider sale. This buyback activity may also help support the stock price.
Another relevant InvestingPro Tip notes that Navient has maintained dividend payments for 14 consecutive years. With a current dividend yield of 4.2%, this could be attractive for income-focused investors, especially considering the company's consistent dividend history.
It's worth noting that InvestingPro offers 7 additional tips for Navient, providing a more comprehensive analysis for investors looking to delve deeper into the company's prospects.
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