A study of analyst recommendations at the major brokerages shows that Nelnet Inc (NNI - Get Report) is the #11 broker analyst pick among those stocks screened by The Online Investor for strong stock buyback activity. To make that list, a stock must have repurchased at least 5% of its outstanding shares over the trailing twelve month period. In forming the rank, the analyst opinions from the major brokerage houses were tallied, and averaged; then, the list of stocks with strong buyback activity was ranked according to those averages.Investors are often keenly interested in knowing which companies are buying back their own stock, because companies often will only make such a move if they feel their stock is undervalued. Nelnet Inc is a company with strong buyback activity that is also considered a compelling buy by analysts; a bullish investor could take this to mean that sharp analyst minds came to the same bullish conclusion as the company itself that the stock is a good value, and therefore the stock should do well in the future. Analysts studying companies buying back their own stock will also factor into their analysis that future earnings will now be spread over a smaller share count, thereby increasing the per-share earnings the remaining shares will enjoy, versus what that same number would have been absent the stock buyback activity. NNI operates in the Credit Services & Lending sector, among companies like American Express Co. (AXP) which is up about 0.5% today, and S&P Global Inc (SPGI) trading higher by about 0.8%. Below is a three month price history chart comparing the stock performance of NNI, versus AXP and SPGI. NNI is currently trading down about 0.1% midday Monday.
More from Stocks
Boeing Stock Reaction Strongly Suggests Investors See a Long-Term Opportunity
Investors should be not be alarmed by the company putting its share buyback plan on hold.
Domino's Heats Up Following Earnings Beat Despite Slowing Sales Growth
The pizza chain reports first-quarter profit ahead of expectations, though revenue fell short.
Best Buy Climbs Following Jefferies Upgrade to Buy
Jefferies upgrades the stock to buy from hold and increases their price target on Best Buy to $88 from $72.
Occidental Petroleum Trumps Chevron With $57 Billion Takeover Bid for Anadarko
Occidental Petroleum makes a formal proposal to buy Anadarko Petroleum in a deal that would value the oil services group at $57 billion and trumps a pending proposal from Chevron.