Goldman Sachs analyst Eric Beardsley downgraded Navient to Neutral saying the risk/reward is more balanced at current share levels. The analyst keeps a $15 price target for the stock.

Keefe Bruyette analyst Sanjay Sakhrani lowered the firm's price target on Navient to $17 from $19 and keeps a Market Perform rating on the shares. Following the company's Q1 report, the firm is lowering its 2024 and 2025 EPS estimates, largely to reflect the impact of elevated prepayment rates on FFELP net interest margin.

"We have made substantial progress on the three strategic actions launched earlier this year to outsource student loan servicing, explore strategic options for our business processing division, and streamline our shared service infrastructure and corporate footprint," said David Yowan, president and CEO, Navient. "We are nearing completion of a final outsourcing agreement - which will pave the way for the transition of nearly 900 employees to support seamless service for our customers. Further, we expect to be in a position to decide on the options to divest our business processing division. We are beginning to execute our plans for a leaner company. When completed, we believe these actions will simplify our business, reduce our expense base, and increase our financial and operating flexibility."