Prudent Capitalist
9 years ago
Nelnet, Inc. (NNI) Shares Bought by Nationwide Fund Advisors
Posted by Karim Khaledi on Apr 14th, 2016 // No Comments
Nationwide Fund Advisors boosted its stake in Nelnet, Inc. (NYSE:NNI) by 151.8% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 49,339 shares of the company’s stock after buying an additional 29,741 shares during the period. Nationwide Fund Advisors’ holdings in Nelnet were worth $1,656,000 as of its most recent filing with the SEC.
Separately, Thompson Siegel & Walmsley LLC raised its position in Nelnet by 76.4% in the fourth quarter. Thompson Siegel & Walmsley LLC now owns 553,698 shares of the company’s stock valued at $18,588,000 after buying an additional 239,726 shares during the period.
Shares of Nelnet, Inc. (NYSE:NNI) traded up 3.87% on Wednesday, reaching $40.83. 80,843 shares of the company’s stock were exchanged. Nelnet, Inc. has a one year low of $27.80 and a one year high of $46.83. The firm has a market capitalization of $1.76 billion and a P/E ratio of 6.94. The firm has a 50 day moving average of $39.06 and a 200 day moving average of $34.56.
Nelnet (NYSE:NNI) last issued its quarterly earnings data on Thursday, February 25th. The company reported $1.31 earnings per share for the quarter, meeting the Zacks’ consensus estimate of $1.31. During the same period in the prior year, the company earned $1.60 earnings per share. On average, equities research analysts predict that Nelnet, Inc. will post $5.35 EPS for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 15th. Investors of record on Tuesday, March 1st were paid a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a dividend yield of 1.18%. The ex-dividend date was Friday, February 26th.
Separately, Compass Point upped their price target on shares of Nelnet from $48.00 to $52.00 and gave the company a “buy” rating in a research note on Monday, March 7th.
In related news, insider William J. Munn sold 1,000 shares of the firm’s stock in a transaction that occurred on Wednesday, March 16th. The stock was sold at an average price of $38.84, for a total value of $38,840.00. Following the transaction, the insider now directly owns 25,948 shares of the company’s stock, valued at approximately $1,007,820.32. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink.
Nelnet, Inc is a provider of educational services in loan servicing, payment processing, education planning, and asset management. The Company’s products and services help students and families plan, prepare, and pay for their education and make the administrative and financial processes more efficient for schools and financial organizations.
Prudent Capitalist
12 years ago
NNI upgraded - New $33 Price Target (Credit Suisse)
Solid 3Q Results; FFELP Cash Flows To Add Value; Upgrading to OP and Raising TP to $33
After 3Q results, we upgrade Nelnet to Outperform and raise our target price from $29 to $33. The increase in our TP is driven by additional value of $3/shr from FFELP portfolio acquisitions and securitizations and $1/shr from 2013-based valuation of fee and servicing businesses. This valuation is supported by more active capital management, as NNI has declared a $1/share special dividend for 4Q. Nelnet posted a solid 3rd quarter and a better FFELP NIM than we had expected. Cash flows for its FFELP portfolio increased $10MM in 3Q to $1.88Bn, despite a shrinking portfolio. NNI indicated that in 4Q, it purchased $1.1Bn of FFELP loans and expects to purchase more in 4Q12. Our cash flow forecast includes loans purchased to date. On fee income, we update our valuation to reflect 2013 earnings estimates and NNI’s increased ED contract share for 2012-13 (30%,
up from 16%), which increases the fee income valuation to $12/shr. Our valuation is supported by capital return and NNI’s $1.00/shr special dividend.
Increasing estimates and target price. We are increasing our 2012, 2013 and 2014 estimates to $4.50, $4.85 and $4.85 to reflect 3Q results, loan purchases of $1.1Bn in 4Q, and a stronger FFELP NIM. Further FFELP purchases of $1Bn would add ~$0.15/share to our EPS estimates. Our sum-of-the-parts target price valuation increases $4 to $33. A 6% discount rate on the FFELP portfolio cash flows implies $21/shr of value. We then
attribute $12 to the fee-based businesses based on 2013 EPS projections for the businesses to reach our $33 price target, or 1.2x forward TBV.
Prudent Capitalist
12 years ago
Another great quarter! NNI shares remain considerably undervalued.
- Net income $1.13 per share for the quarter, excluding derivative market value adjustments
- Loan and Guaranty Servicing revenue increased 26 percent
- Tuition Payment Processing and Campus Commerce revenue increased 14 percent
LINCOLN, Neb., Aug. 8, 2012 /PRNewswire/ -- Nelnet NNI today reported $53.5 million, or $1.13 per share, of net income, excluding derivative market value adjustments, for the second quarter of 2012, compared with $47.5 million, or $0.98 per share, for the same period a year ago.
GAAP net income for the second quarter of 2012 and 2011 was $41.4 million, or $0.87 per share, and $37.1 million, or $0.76 per share, respectively. Derivative market value adjustments were $12.1 million, or $0.26 per share after tax, for the second quarter of 2012, compared with $10.4 million, or $0.22 per share after tax, for the second quarter of 2011.
"In the second quarter of 2012, we reported strong results and showed progress toward achieving our core objectives," said Mike Dunlap, Nelnet Chairman and Chief Executive Officer. "We continue to focus on growing our fee-based and asset management businesses, driving diversification around our core businesses, and improving our customers' experiences."
Nelnet operates four primary business segments, earning interest income on student loans in its Asset Generation and Management operating segment and fee-based revenue in its Student Loan and Guaranty Servicing, Tuition Payment Processing and Campus Commerce, and Enrollment Services operating segments. In the second quarter of 2012, the company increased its total revenue to $184.2 million, compared with $175.6 million in the second quarter of 2011. Operating expenses for the second quarter of 2012 and 2011 were $108.2 million and $100.6 million, respectively.
Student Loan and Guaranty Servicing
Revenue from the company's Student Loan and Guaranty Servicing segment increased 26 percent, or $10.7 million, to $52.4 million for the second quarter of 2012 from $41.7 million for the second quarter of 2011. The increase in revenue is primarily the result of growth in servicing volume for the Department of Education (Department), remote hosting fees, and fee revenue from rehabilitated loans.
As of June 30, 2012, the company was servicing $56.0 billion of loans for 3.1 million borrowers on behalf of the Department, compared with $38.8 billion of loans for 2.7 million borrowers as of June 30, 2011. Revenue from this contract increased to $16.1 million for the second quarter of 2012, up from $11.9 million for the same period a year ago.
The Student Loan and Guaranty Servicing segment also includes revenue from monthly fees earned from third parties using Nelnet's new hosted servicing software solution to service Federal Direct Loan Program and Federal Family Education Loan Program loans. As of June 30, 2012, 7.9 million borrowers were hosted on the company's solution.
Tuition Payment Processing and Campus Commerce
For the second quarter of 2012, revenue from the company's Tuition Payment Processing and Campus Commerce segment was $16.8 million, an increase of $2.0 million, or 14 percent, from the same period in 2011.
Asset Management
As of June 30, 2012, net student loan assets were $23.5 billion. Substantially all of Nelnet's federal student loans are financed for the life of the loan at rates the company currently believes will generate significant future cash flow of $1.87 billion. On July 1, 2010, the company stopped originating federal student loans because legislation eliminated the Federal Family Education Loan Program. As a result, the company's student loan portfolio will run off over a period of several years.
Historically low interest rates are continuing to provide an opportunity for the company to generate substantial near-term value and cash flow from its student loan portfolio. For the second quarter of 2012, Nelnet reported net interest income of $84.6 million, compared with $88.7 million for the same period a year ago. Net interest income includes $37.0 million and $32.8 million of fixed rate floor income in the second quarters of 2012 and 2011, respectively.
Board of Directors Approves Dividend
The Nelnet Board of Directors declared a third quarter cash dividend on the company's outstanding shares of Class A common stock and Class B common stock of $0.10 per share. The dividend will be paid on September 15, 2012, to shareholders of record at the close of business on September 1, 2012. Nelnet currently has 35.8 million shares of Class A common stock and 11.5 million shares of Class B common stock outstanding.
Non-GAAP Performance Measures
Information regarding the company's operating results has historically been provided using "base net income," which consisted of GAAP net income excluding the derivative market value and foreign currency adjustments, amortization of intangible assets, compensation related to business combinations, and variable rate floor income, net of settlements on derivatives. Due to the decrease in the number and dollar amount of differences between "base net income" and GAAP net income, the company has discontinued utilizing "base net income" when evaluating the performance and profitability of the company and reporting its operating results.
The company will continue to provide additional information related to specific items management believes to be important in the evaluation of its financial position and performance, including specifically, but not limited to, the impact of the unrealized gains and losses resulting from the change in fair value of derivative instruments in which the company does not qualify for "hedge treatment" under GAAP, and the foreign currency transaction gains or losses resulting from the re-measurement of the company's Euro-denominated bonds to U.S. dollars. The company believes these point-in-time estimates of asset and liability values related to these financial instruments that are subject to interest and currency rate fluctuations affect the period-to-period comparability of the results of operations.
Penny Roger$
13 years ago
Nelnet, Inc. is an education services company focused primarily on providing fee-based processing services and education-related products and services in four core areas: loan financing, loan servicing, payment processing, and enrollment services. These products and services help students and families plan, prepare, and pay for their education and make the administrative and financial processes more efficient for schools and financial organizations. In addition, the Company earns net interest income on a portfolio of federally insured student loans. It has four segments; Student Loan and Guaranty Servicing, Tuition Payment Processing and Campus Commerce, Enrollment Services and Asset Generation and Management. It serves several groups of customers including students and families; colleges and universities, specifically financial aid, business, and admissions offices; private, faith-based, and other K-12 institutions; lenders, servicers, and state agencies in education finance.
http://www.google.com/finance?q=NNI