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Nelnet, Inc. (NNI) Stock Analysis

SellVALUE-TRAP 2/5Moderate Confidence

Financial Services · Credit Services

Sell if holding. Analyst target reached at $128.36 — A.R:R is negative (-1.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.1): -1.5.

Nelnet is a diversified education-focused holding company with segments in loan servicing (servicing $486.2B for 13.2 million borrowers including $434.5B for the Department of Education), education technology/payments (FACTS, Nelnet Campus Commerce), and asset management (AGM... Read more

$128.36+10.2% A.UpsideScore 5.0/10#26 of 28 Credit Services
QualityF-score4 / 9FCF yield
IncomeYield1.00%(5y avg 1.05%)Payout10.78%sustainable
Stop $119.37Target $141.49(resistance)A.R:R -1.2:1
Analyst target$135.00+5.2%1 analysts
Range unavailable (1 analysts)

Sell if holding. Analyst target reached at $128.36 — A.R:R is negative (-1.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.1): -1.5. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.0/10, moderate confidence.

Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 78d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.

Recent Developments — Nelnet, Inc.

Generated 2026-05-20T21:56:22Z.

Thesis

Rewards
Sector modifier (Financial Services): +1.0
Attractive valuation
Risks
Analyst target reached - limited upside remaining
Leverage penalty (D/E 2.1): -1.5
Consecutive earnings misses (2)

Key Metrics

P/E (TTM)11.2
P/E (Fwd)12.8
Mkt Cap$4.6B
EV/EBITDA
Profit Mgn25.3%
ROE10.7%
Rev Growth-7.1%
Beta0.83
Dividend1.00%
Rating analysts8

Quality Signals

Piotroski F4/9

Options Flow

P/C0.40bullish
IV34%normal
Max Pain$115-10.4% vs spot

Concentration Risks(10-K Item 1A)

  • MEDIUMCustomerDepartment of Education21%
    10-K Item 1: 'The Department is the Company's largest customer, representing 21% of the Company's revenue and 68% of the LSS operating segment's revenue in 2025.'

Material Events(8-K, last 90d)

  • 2026-03-23Item 5.02MEDIUM
    Adam Peterson resigned from Nelnet's Board of Directors effective March 23, 2026 for business and personal reasons. No disagreement with operations, policies, or practices cited.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

3 floor-breakers·1 ceiling hit

Revenue shrinking — -7.1% YoY. Growth thesis broken unless recovery story develops.static

Earnings Growth
0.0
Revenue Growth
0.7
Declining revenue: -7%

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Macd
0.0
Ma Position
2.2
Volume
2.4
Rsi
3.0
Obv
10.0
Capitulation risk (RSI 24, below 200MA)Volume accumulation (rising OBV)Below 200-MA but MA still rising (+1.7%/30d) — pullback in uptrend, not confirmed weakness

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Growth Rank
1.1
Quality Rank
3.6
Value Rank
4.3
GatesMomentum 3.5<4.5A.R:R -1.2=NEGATIVEInsider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 78d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Aggressive
RSI
24 · Oversold
20D MA 50D MA 200D MAGOLDEN CROSSSupport $116.62Resistance $144.38

Price Targets

$119
$141
A.Upside+10.2%
A.R:R-1.2:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Target reached (-10.6% upside)
! Momentum score 3.5/10 — below 4.5 minimum
! Negative risk/reward — downside exceeds upside

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-08-05 (78d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is NNI stock a buy right now?

Sell if holding. Analyst target reached at $128.36 — A.R:R is negative (-1.2) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.1): -1.5. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $119.37. Score 5.0/10, moderate confidence.

What is the NNI stock price target?

Take-profit target: $141.49 (+10.2% upside). Prior stop was $119.37. Stop-loss: $119.37.

What are the risks of investing in NNI?

Analyst target reached - limited upside remaining; Leverage penalty (D/E 2.1): -1.5; Consecutive earnings misses (2).

Is NNI overvalued or undervalued?

Nelnet, Inc. trades at a P/E of 11.2 (forward 12.8). TrendMatrix value score: 8.7/10. Verdict: Sell.

What do analysts say about NNI?

8 analysts cover NNI with a consensus score of 2.3/5. Average price target: $135.

What does Nelnet, Inc. do?Nelnet is a diversified education-focused holding company with segments in loan servicing (servicing $486.2B for 13.2...

Nelnet is a diversified education-focused holding company with segments in loan servicing (servicing $486.2B for 13.2 million borrowers including $434.5B for the Department of Education), education technology/payments (FACTS, Nelnet Campus Commerce), and asset management (AGM with $8.7B loan portfolio). The Department of Education is Nelnet's largest customer, representing 21% of revenue in 2025 and 68% of the Loan Servicing segment's revenue. It also operates Nelnet Bank, an internet industrial bank.

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