Nelnet (NYSE:NNI) Shares Gap Up on Better-Than-Expected Earnings

Nelnet, Inc. (NYSE:NNI) gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. 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 trading hands.

The credit services provider reported $1.44 earnings per share (EPS) for the quarter, beating 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 company had revenue of $401.61 million during the quarter, compared to analysts’ expectations of $335.00 million.

Nelnet Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, March 14th. Investors of record on Friday, February 28th will be issued a $0.28 dividend. The ex-dividend date of this dividend is Friday, February 28th. This represents a $1.12 annualized dividend and a dividend yield of 0.95%. Nelnet’s dividend payout ratio is presently 36.84%.

Wall Street Analysts Forecast Growth

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

Hedge Funds Weigh In On Nelnet

A number of institutional investors have recently bought and sold shares of NNI. Vanguard Group Inc. increased its holdings in shares of Nelnet by 8.0% during the 4th quarter. Vanguard Group Inc. now owns 1,347,756 shares of the credit services provider’s stock worth $143,954,000 after buying an additional 99,885 shares during the last quarter. Farmers & Merchants Investments Inc. grew its position in Nelnet by 0.5% in the fourth quarter. Farmers & Merchants Investments Inc. now owns 1,187,527 shares of the credit services provider’s stock worth $126,840,000 after acquiring an additional 5,708 shares during the period. Proficio Capital Partners LLC grew its position in Nelnet by 16,773.6% in the fourth quarter. Proficio Capital Partners LLC now owns 482,247 shares of the credit services provider’s stock worth $482,000 after acquiring an additional 479,389 shares during the period. Geode Capital Management LLC increased its stake in Nelnet by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 361,553 shares of the credit services provider’s stock worth $38,627,000 after acquiring an additional 1,060 shares during the last quarter. Finally, Sycale Advisors NY LLC raised its position in Nelnet by 26.7% in the fourth quarter. Sycale Advisors NY LLC now owns 258,038 shares of the credit services provider’s stock valued at $27,561,000 after purchasing an additional 54,380 shares during the period. 33.51% of the stock is owned by hedge funds and other institutional investors.

Nelnet Trading Up 5.2 %

The firm has a market cap of $4.27 billion, a price-to-earnings ratio of 38.46 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. The company has a 50 day moving average price of $109.24 and a 200 day moving average price of $110.61.

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.