JSM Navient Corporation SR NT 6% 121543

Texas Permanent School Fund Corp significantly reduced its stake in Navient Corporation (NASDAQ:NAVI) by selling 83,051 shares, trimming its position by 62.8% during the second quarter. The firm now holds 49,173 shares worth approximately $693,000. Navient, a specialized provider of asset management and business processing solutions focusing on student loan servicing, currently trades around $12.97 with a market capitalization of $1.26 billion.

Navient (NASDAQ:NAVI) shares have climbed above their 50-day moving average, trading at $13.20. Despite this, analyst sentiment remains broadly negative with an average target price of $12.83 and a "Reduce" rating. The company reported mixed recent results, a negative payout ratio, and a negative P/E ratio.

Navient (NAVI) has seen its share price stabilize and is showing signs of revenue growth, despite ongoing losses and a year-to-date decline in stock performance. The company is considered 2.2% undervalued with a narrative fair value of $12.89, supported by significant operating expense reductions and initiatives to capture market share. However, elevated delinquencies and regulatory uncertainties in student loans pose potential risks to its optimistic outlook.

American Century Companies Inc. increased its stake in Navient Corporation ($NAVI) by 3.4% in Q2, bringing their total ownership to approximately 2.03% valued at $28.5 million. Despite this, analysts largely maintain a "Reduce" rating on the stock with an average price target of $12.83, and Navient recently declared a quarterly dividend of $0.16, annualized at $0.64, offering a 5.2% yield. Other institutional investors have also adjusted their holdings in Navient, with hedge funds and institutional investors owning 97.14% of the stock.

Navient's third-quarter earnings were impacted by an increased provision for loan losses, but the company's growing refinancing business and potential federal student loan reforms offer positive future prospects. Despite missing Wall Street predictions due to higher net charge-offs, investor sentiment is leaning positive with shares rising over 4%, as an expanding refinancing business and regulatory changes could significantly benefit the company. As Navient navigates its legacy loan portfolio, it aims to capitalize on new opportunities in higher education partnerships, demonstrating a path for older lenders to adapt in a changing regulatory landscape.

Navient Corp announced its Phase 2 Strategy Update on November 19, 2025, focusing on growth and efficiency. Key initiatives include aligning Earnest's product lines with fintech peers for higher growth, projected pre-tax savings of $119 million from restructuring, and expanding into personal loans and digital financial services. The strategy also aims to optimize securitization structures for better returns.