Loan Forgiveness Could Hurt Navient Stock, Says Analyst

The majority of analysts already leaned bearish on Navient stock

Deputy Editor
Sep 9, 2022 at 9:09 AM
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The shares of Navient Corp (NASDAQ:NAVI) are down 2.1% at $14.69 premarket, after Barclays downgraded the stock to "equal weight" from "overweight," with a price-target cut to $13 from $19. The firm cited a potential hit to earnings for the consumer lending name, due to U.S. President Joe Biden's loan forgiveness. 

NAVI has been sliding on the charts since mid August, after it was rejected by overhead pressure at the 180-day moving average. Year-to-date, the equity is down more than 29.3%, though the stock's 14-day relative strength index (RSI) of 31 sits near "oversold" territory, which hints toward a short-term bounce. 

Short interest has been slowly building, and the 9.37 million shares sold short account for 6.9% of the stock's available float. It would take over seven days to buy back these bearish bets at NAVI's average pace of trading. 

Of the 11 analysts in coverage, 10 now carry a "hold" or worse rating on Navient stock, with just one "strong buy" on the books. The 12-month consensus price target of $17.11 is a 14% premium to current levels, but also the home of familiar pressure on the charts. 

 

 

 

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