American Century Companies Inc. Acquires 149,629 Shares of SLM Corporation $SLM

Key Points

• American Century Companies Inc. increased its stake in SLM Corporation by 2.9%, acquiring an additional 149,629 shares in the first quarter, bringing its total holdings to over 5.3 million shares valued at approximately $156 million.
• SLM Corporation's recent earnings report showed a significant decline, with EPS of $0.32 falling short of estimates and a year-over-year revenue drop of 21.4%.
• Following a series of upgrades from major research firms, SLM shares now have a consensus rating of "Moderate Buy" and an average price target of $35.00, indicating positive market sentiment.

American Century Companies Inc. increased its position in shares of SLM Corporation (NASDAQ:SLM - Free Report) by 2.9% in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 5,325,274 shares of the credit services provider's stock after acquiring an additional 149,629 shares during the quarter. American Century Companies Inc. owned about 2.54% of SLM worth $156,403,000 as of its most recent SEC filing.

Other large investors have also made changes to their positions in the company. J.Safra Asset Management Corp acquired a new position in SLM during the first quarter worth $25,000. Fifth Third Bancorp lifted its position in shares of SLM by 37.7% during the 1st quarter. Fifth Third Bancorp now owns 1,714 shares of the credit services provider's stock worth $50,000 after buying an additional 469 shares during the last quarter. UMB Bank n.a. increased its stake in SLM by 355.4% in the 1st quarter. UMB Bank n.a. now owns 1,899 shares of the credit services provider's stock valued at $56,000 after buying an additional 1,482 shares during the period. Headlands Technologies LLC acquired a new position in shares of SLM during the 1st quarter worth $62,000. Finally, CENTRAL TRUST Co acquired a new position in SLM during the first quarter worth about $132,000. 98.94% of the stock is owned by hedge funds and other institutional investors.

SLM Trading Down 1.2%

Shares of SLM traded down $0.38 during trading hours on Tuesday, hitting $30.25. 1,196,299 shares of the stock traded hands, compared to its average volume of 2,576,794. SLM Corporation has a 1-year low of $19.64 and a 1-year high of $34.97. The business has a fifty day moving average of $32.41 and a 200-day moving average of $30.80. The firm has a market capitalization of $6.31 billion, a PE ratio of 15.20, a price-to-earnings-growth ratio of 0.85 and a beta of 1.13. The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 3.02.

SLM (NASDAQ:SLM - Get Free Report) last issued its quarterly earnings results on Thursday, July 24th. The credit services provider reported $0.32 EPS for the quarter, missing the consensus estimate of $0.49 by ($0.17). The company had revenue of $403.60 million for the quarter, compared to analyst estimates of $370.26 million. SLM had a net margin of 15.46% and a return on equity of 21.93%. The business's revenue for the quarter was down 21.4% on a year-over-year basis. During the same period last year, the company posted $1.11 earnings per share. SLM has set its FY 2025 guidance at 3.000-3.100 EPS. Analysts expect that SLM Corporation will post 3.07 EPS for the current year.

SLM Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Thursday, September 4th will be issued a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a dividend yield of 1.7%. The ex-dividend date is Thursday, September 4th. SLM's payout ratio is 26.13%.

Insider Buying and Selling at SLM

In related news, EVP Kerri A. Palmer sold 55,000 shares of the firm's stock in a transaction that occurred on Tuesday, July 29th. The stock was sold at an average price of $32.21, for a total transaction of $1,771,550.00. Following the completion of the sale, the executive vice president owned 119,253 shares of the company's stock, valued at $3,841,139.13. This trade represents a 31.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders own 1.30% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms recently commented on SLM. Morgan Stanley restated an "overweight" rating and issued a $40.00 price target (up previously from $33.00) on shares of SLM in a report on Wednesday, May 21st. Barclays lifted their target price on SLM from $38.00 to $43.00 and gave the stock an "overweight" rating in a report on Friday, July 25th. Wells Fargo & Company lifted their price target on SLM from $34.00 to $38.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 14th. Jefferies Financial Group lifted their target price on SLM from $33.00 to $40.00 and gave the company a "buy" rating in a research note on Wednesday, July 23rd. Finally, JPMorgan Chase & Co. upgraded SLM from a "neutral" rating to an "overweight" rating and lifted their price target for the company from $29.00 to $38.00 in a report on Friday, July 11th. Nine analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat.com, SLM currently has an average rating of "Moderate Buy" and an average price target of $35.00.

SLM Profile

SLM Corporation, through its subsidiaries, originates and services private education loans to students and their families to finance the cost of their education in the United States. It is also involved in the provision of retail deposit accounts, including certificates of deposit, money market accounts, and high-yield savings accounts; and interest-bearing omnibus accounts.