Navient Corp (NASDAQ:NAVI) Under Siege From Law Firms Over Misleading Business Information


Dallas, Texas 07/20/2015 (Financialstrend) – Navient Corp (NASDAQ:NAVI) is being investigated by a number of law firms over allegations that its executives might have misled shareholders on the issuance of false business information.  The investigation revolves around the company issuing a revision of its guidance for Q2 as well as the full year.  On July 13, 2015, the company slashed its second quarter guidance as well as issuing a revised guidance for the full year, which it now expects to come in at $1.85 per diluted share.

 Navient’s Defense

Navient Corp (NASDAQ:NAVI) on its defense through chief executive officer Jack Ramondi has defended the revisions stating they reflect the current market conditions for private loan portfolio purchases and cost of funds.  Some of the firms not convinced by the company defense are in the process of preparing a class-action lawsuit on behalf of shareholders who purchased the stock before July 13, 2015

 Rosen Law Firm, Kirby McInerney LLP, The Wagner Firm as well as Goldberg Law PC are some of the law firms that have started investigations on whether the company might have violated is fiduciary obligations.

Analysts Mixed Sentiments

Separately analysts at Barclays have upgraded Navient stock to an ‘overweight’ from an ‘equal weight’ but lowered the share price target from $22 a share to $21 a share. The bank expects the Navient Corp (NASDAQ:NAVI) to post earnings per share of $1.84 a share down from $1.84 a share. The downgrade came on the company pre-announcing weaker than expected Q2 earnings that reflect weaker credit and margin trend

 TheStreet research firm, on the other hand, maintains a ‘buy’ rating on the stock citing a string of strengths that are expected to have a greater impact on the stock.  The increase in net income, as well as a notable return on equity, are some of the notable strengths that the firm expects to play a key role on the company’s positive sentiments in the market. Navient Corp (NASDAQ:NAVI)’s attractive valuation levels, as well as expanding profit margins, are some of the other key points worth watching out for.

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