Shares of student loan servicer Navient (NASDAQ:NAVI) fell 1.9% in the morning session after BofA Securities downgraded the stock to 'Underperform' from 'Neutral', citing concerns over its transition to growth initiatives. The investment bank also lowered its price target to $12.00 from $15.00. The downgrade reflects concerns about Navient's shift from cost-cutting measures to a growth phase, which BofA believes carries 'significantly higher execution risk.' Analysts also pointed to worries regarding the company's loan portfolio quality and potential pressure on profit margins. This move suggests that the firm sees increased challenges ahead as Navient attempts to pivot its business strategy.
Wall Street’s bearish price targets for the stocks in this article signal serious concerns.
Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains.
This unpredictability can shake out even the most experienced investors.
A number of stocks jumped in the afternoon session after the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names.
But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
The U.S. Department of Education will resume collections on defaulted federal student loans starting next month, marking the end of a collections pause that began in March 2020 as a pandemic relief measure.
President Donald Trump signed an executive order on Thursday aimed at dismantling the U.S. Department of Education. President Trump also announced on Friday that federal student loan servicing will be transferred to the Small Business Administration.
The Biden administration on Monday announced more federal student loan forgiveness, bringing the administration's total student loan forgiveness to $183.6 billion for more than 5 million borrowers.
The Biden administration withdrew two major student loan forgiveness plans on Friday, just weeks before President-elect Donald Trump is set to enter the Oval Office. Here's a look at what it means for borrowers and student loan service providers.
Millions of Americans may see credit rating drops as Biden's moratorium on reporting late student loan payments ends, affecting loan approvals and rentals.
U.S. District Judge J. Randal Hall on Thursday temporarily blocked the Biden administration's latest student debt relief plan in a lawsuit brought by seven Republican-led states.
