Nelnet (NYSE:NNI) Shares Gap Up Following Earnings Beat

Nelnet, Inc. (NYSE:NNI) gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $111.69, but opened at $117.00. Nelnet shares last traded at $116.07, with a volume of 2,257 shares.

The credit services provider reported $1.44 earnings per share for the quarter, topping the consensus estimate of $1.23 by $0.21. Nelnet had a net margin of 5.54% and a return on equity of 3.78%. The business had revenue of $401.61 million for the quarter, compared to analyst estimates of $335.00 million.

Nelnet Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 14th. Stockholders of record on Friday, February 28th will be issued a dividend of $0.28 per share. This represents a $1.12 annualized dividend and a dividend yield of 0.92%. The ex-dividend date of this dividend is Friday, February 28th. Nelnet’s payout ratio is 36.84%.

Analyst Ratings Changes

Separately, StockNews.com upgraded Nelnet from a “hold” rating to a “buy” rating in a research report on Saturday, February 22nd.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Kingsview Wealth Management LLC acquired a new stake in Nelnet in the 3rd quarter valued at about $2,613,000. MML Investors Services LLC increased its holdings in shares of Nelnet by 7.4% in the third quarter. MML Investors Services LLC now owns 2,279 shares of the credit services provider’s stock valued at $258,000 after purchasing an additional 157 shares in the last quarter. Barclays PLC raised its position in Nelnet by 127.4% in the 3rd quarter. Barclays PLC now owns 28,996 shares of the credit services provider’s stock worth $3,285,000 after purchasing an additional 16,245 shares during the last quarter. Intech Investment Management LLC acquired a new position in Nelnet during the 3rd quarter worth $323,000. Finally, Edgestream Partners L.P. bought a new position in Nelnet in the 3rd quarter valued at $851,000. 33.51% of the stock is owned by institutional investors.

Nelnet Price Performance

The stock has a 50-day simple moving average of $109.56 and a 200 day simple moving average of $110.72. The stock has a market capitalization of $4.44 billion, a P/E ratio of 40.22 and a beta of 0.91. The company has a debt-to-equity ratio of 2.78, a quick ratio of 31.47 and a current ratio of 31.47.

Nelnet Company Profile

Nelnet, Inc engages in loan servicing, communications, education technology, services, and payment processing businesses worldwide. The Loan Servicing and Systems segment provides loan conversion, application processing, borrower updates, customer service, payment processing, due diligence procedures, funds management reconciliation, and claim processing services.