Bank of New York Mellon Corp Makes New $39.25 Million Investment in SLM Corporation $SLM

Key Points

• Bank of New York Mellon purchased 1.51 million SLM shares worth approximately $39.25 million, acquiring about 0.81% of the company. Institutional investors collectively own nearly 99% of SLM.
• Analyst sentiment remains mixed, with five Buy, six Hold, and one Sell rating; the stock has an average “Hold” rating and a consensus price target of $29.80.
• SLM shares opened at $26.41 after the company reported quarterly EPS of $0.29, below the $0.46 consensus estimate. The company also declared a quarterly dividend of $0.13, representing a 2.0% annualized yield.

Bank of New York Mellon Corp bought a new stake in shares of SLM Corporation (NASDAQ:SLM - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund bought 1,513,137 shares of the credit services provider's stock, valued at approximately $39,251,000. Bank of New York Mellon Corp owned approximately 0.81% of SLM as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also made changes to their positions in the company. Goldman Sachs Group Inc. raised its holdings in shares of SLM by 33.4% in the first quarter. Goldman Sachs Group Inc. now owns 547,724 shares of the credit services provider's stock valued at $16,087,000 after acquiring an additional 137,285 shares in the last quarter. SG Americas Securities LLC grew its holdings in SLM by 63.1% during the 1st quarter. SG Americas Securities LLC now owns 261,392 shares of the credit services provider's stock worth $5,596,000 after acquiring an additional 101,120 shares in the last quarter. Entropy Technologies LP increased its position in SLM by 616.6% during the 3rd quarter. Entropy Technologies LP now owns 109,485 shares of the credit services provider's stock valued at $3,031,000 after purchasing an additional 94,207 shares during the period. State of Wyoming purchased a new position in SLM during the 2nd quarter valued at about $1,375,000. Finally, Captrust Financial Advisors raised its holdings in shares of SLM by 31.3% in the 4th quarter. Captrust Financial Advisors now owns 53,673 shares of the credit services provider's stock valued at $1,452,000 after purchasing an additional 12,793 shares in the last quarter. Institutional investors own 98.94% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the stock. Wall Street Zen downgraded shares of SLM from a "hold" rating to a "sell" rating in a research note on Saturday, July 25th. Morgan Stanley upped their target price on SLM from $27.00 to $28.00 and gave the stock an "equal weight" rating in a report on Monday, July 20th. Zacks Research cut SLM from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, May 26th. JPMorgan Chase & Co. lifted their price target on SLM from $24.00 to $25.00 and gave the company an "underweight" rating in a report on Monday, July 13th. Finally, Weiss Ratings raised SLM from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, June 18th. Five analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, SLM presently has an average rating of "Hold" and an average price target of $29.80.

SLM Trading Down 1.3%

Shares of NASDAQ:SLM opened at $26.41 on Friday. The business's 50-day moving average is $25.87 and its 200 day moving average is $23.26. SLM Corporation has a 1 year low of $17.77 and a 1 year high of $32.02. The firm has a market capitalization of $4.96 billion, a P/E ratio of 7.38, a P/E/G ratio of 2.33 and a beta of 0.96. The company has a debt-to-equity ratio of 2.63, a current ratio of 1.33 and a quick ratio of 1.32.

SLM (NASDAQ:SLM - Get Free Report) last released its earnings results on Thursday, July 23rd. The credit services provider reported $0.29 earnings per share for the quarter, missing the consensus estimate of $0.46 by ($0.17). The company had revenue of $401.11 million for the quarter, compared to analysts' expectations of $409.22 million. SLM had a return on equity of 33.81% and a net margin of 26.09%.The firm's revenue for the quarter was down .7% on a year-over-year basis. During the same period in the prior year, the firm posted $0.32 EPS. SLM has set its FY 2026 guidance at 3.100-3.200 EPS. On average, research analysts predict that SLM Corporation will post 3.12 earnings per share for the current fiscal year.

SLM Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Friday, September 4th will be issued a $0.13 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.52 dividend on an annualized basis and a dividend yield of 2.0%. SLM's dividend payout ratio is currently 14.53%.

About SLM

SLM Corporation, operating as Sallie Mae Bank, is a leading U.S.-based consumer banking company specializing in education financing and related banking products. The company provides a range of private student loans for undergraduate and graduate studies, Parent PLUS loans, and specialized financing for career and certificate programs. In addition to its core lending services, Sallie Mae offers deposit products including savings accounts, checking accounts, money market accounts, certificates of deposit, and credit cards tailored to students and young adults.

Founded in 1972 as the Student Loan Marketing Association—a government-sponsored enterprise—Sallie Mae was privatized in 2004 and has since focused on expanding its private education loan offerings and digital banking solutions.

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