SLM (NASDAQ:SLM) Price Target Cut to $26.00 by Analysts at Morgan Stanley

Key Points

• Morgan Stanley lowered SLM’s price target from $30 to $26 while maintaining an “overweight” rating, implying nearly 35% upside from the stock’s $19.27 price.
• SLM reported a significant third-quarter miss, posting a $0.19 loss per share versus expectations for $0.17 of earnings, while revenue declined 31.3% year over year to $375.5 million.
• Shares fell 11.5% following the results, and the company reduced its 2026 EPS outlook to $1.95–$2.05 from $3.10–$3.20 amid higher credit losses and charge-offs; analysts’ consensus rating remains “Hold” with a $26.44 target.

SLM (NASDAQ:SLM - Get Free Report) had its target price dropped by Morgan Stanley from $30.00 to $26.00 in a report released on Friday, Benzinga reports. The firm presently has an "overweight" rating on the credit services provider's stock. Morgan Stanley's price target points to a potential upside of 34.96% from the company's current price.

Other equities analysts have also issued reports about the stock. Wall Street Zen lowered shares of SLM from a "hold" rating to a "sell" rating in a report on Saturday, July 25th. TD Cowen dropped their target price on SLM from $32.00 to $27.00 and set a "buy" rating on the stock in a research report on Friday. Royal Bank Of Canada cut their price target on SLM from $28.00 to $26.00 and set an "outperform" rating on the stock in a report on Friday. Barclays reduced their price target on SLM from $26.00 to $22.00 and set an "equal weight" rating for the company in a research report on Friday. Finally, Wells Fargo & Company decreased their price objective on SLM from $28.00 to $24.00 and set an "overweight" rating for the company in a research note on Friday. Five analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $26.44.

SLM Stock Down 11.5%

NASDAQ:SLM traded down $2.50 during mid-day trading on Friday, reaching $19.27. The company's stock had a trading volume of 7,904,626 shares, compared to its average volume of 3,065,947. The company has a quick ratio of 1.32, a current ratio of 1.33 and a debt-to-equity ratio of 2.63. SLM has a 1 year low of $17.77 and a 1 year high of $31.06. The stock has a fifty day moving average of $24.63 and a 200-day moving average of $24.03. The firm has a market capitalization of $3.62 billion, a PE ratio of 5.38, a price-to-earnings-growth ratio of 1.56 and a beta of 0.96.

SLM (NASDAQ:SLM - Get Free Report) last posted its earnings results on Thursday, October 22nd. The credit services provider reported ($0.19) EPS for the quarter, missing analysts' consensus estimates of $0.17 by ($0.36). SLM had a net margin of 26.09% and a return on equity of 33.81%. The business had revenue of $375.47 million for the quarter, compared to analysts' expectations of $453.34 million. During the same period last year, the business posted $0.63 EPS. The company's revenue for the quarter was down 31.3% on a year-over-year basis. Equities research analysts forecast that SLM will post 3.12 earnings per share for the current year.

Institutional Investors Weigh In On SLM

Several institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. acquired a new position in shares of SLM in the 2nd quarter valued at $455,576,000. Barrow Hanley Mewhinney & Strauss LLC acquired a new stake in SLM during the 2nd quarter worth about $169,136,000. Azora Capital LP purchased a new stake in SLM during the 2nd quarter valued at about $97,917,000. Bank of New York Mellon Corp purchased a new stake in SLM during the 2nd quarter valued at about $39,251,000. Finally, Bank of America Corp DE purchased a new stake in SLM during the 2nd quarter valued at about $37,268,000. 98.94% of the stock is currently owned by institutional investors and hedge funds.

SLM News Summary

Here are the key news stories impacting SLM this week:

• Positive Sentiment: Analysts remain constructive despite lowering their targets. Royal Bank of Canada reduced its target from $28 to $26 while maintaining an “outperform” rating, and TD Cowen cut its target from $32 to $27 while retaining a “buy” rating. Both targets imply substantial upside from recent levels. Royal Bank of Canada analyst rating TD Cowen analyst rating
• Positive Sentiment: Private education loan originations increased 15% year over year to $3.4 billion, with graduate-loan originations rising 119%. Sixth Street also committed to purchase $1.5 billion of student loans annually, potentially supporting future loan volume and funding. SLM long-term investor takeaways
• Neutral Sentiment: SLM repurchased 5.1 million shares for $132.2 million during the quarter and announced a fourth-quarter dividend payable December 15, providing shareholder returns despite the weaker operating results. SLM dividend announcement
• Negative Sentiment: Third-quarter results were substantially below expectations: SLM reported a $0.19 per-share loss versus consensus for $0.17 of earnings, while revenue fell 31.3% year over year to $375.5 million, below the $453.3 million estimate. SLM third-quarter financial results
• Negative Sentiment: Higher credit costs drove the deterioration. Third-quarter provisions for credit losses totaled $213.7 million, net charge-offs reached $90 million, and delinquencies were 4.2% of loans in repayment. SLM now expects 2026 EPS of $1.95–$2.05, down from prior guidance of $3.10–$3.20 and below the roughly $3.12 analyst consensus. SLM cuts full-year guidance

About SLM

SLM Corp., commonly known as Sallie Mae, is a financial services company focused on helping students and families finance higher education. Its primary business is the origination and servicing of private education loans, which can help cover tuition, fees, books, housing and other eligible education-related expenses not fully covered by federal student aid.

The company offers private student loans for undergraduate and graduate education, as well as loans for career-training programs and other education needs.

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