T. Rowe Price Investment Management Inc. Sells 815,358 Shares of SLM Corporation $SLM

Key Points

• T. Rowe Price Investment Management Inc. reduced its stake in SLM Corporation by 29.4%, holding 1,953,383 shares after selling 815,358 shares in the first quarter.
• SLM reported a quarterly earnings miss with an EPS of $0.32, falling short of analysts' expectations of $0.49, while quarterly revenue was $403.60 million, exceeding expectations.
• SLM's board declared a quarterly dividend of $0.13 per share, set to be paid on September 15th, reflecting an annual yield of 1.6% and a payout ratio of 26.13%.

T. Rowe Price Investment Management Inc. decreased its holdings in shares of SLM Corporation (NASDAQ:SLM - Free Report) by 29.4% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 1,953,383 shares of the credit services provider's stock after selling 815,358 shares during the quarter. T. Rowe Price Investment Management Inc. owned approximately 0.93% of SLM worth $57,371,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in the business. American Century Companies Inc. raised its stake in shares of SLM by 2.9% during the first quarter. American Century Companies Inc. now owns 5,325,274 shares of the credit services provider's stock worth $156,403,000 after buying an additional 149,629 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC bought a new stake in shares of SLM in the fourth quarter valued at approximately $140,442,000. Bank of New York Mellon Corp boosted its holdings in shares of SLM by 22.9% in the 1st quarter. Bank of New York Mellon Corp now owns 2,981,771 shares of the credit services provider's stock valued at $87,575,000 after purchasing an additional 554,931 shares in the last quarter. Voya Investment Management LLC boosted its holdings in shares of SLM by 0.5% during the 4th quarter. Voya Investment Management LLC now owns 2,835,279 shares of the credit services provider's stock valued at $78,197,000 after acquiring an additional 13,892 shares in the last quarter. Finally, Northern Trust Corp raised its position in SLM by 0.6% during the 1st quarter. Northern Trust Corp now owns 2,654,575 shares of the credit services provider's stock worth $77,965,000 after purchasing an additional 15,662 shares during the last quarter. Institutional investors own 98.94% of the company's stock.

Insiders Place Their Bets

In other news, EVP Kerri A. Palmer sold 55,000 shares of the firm's stock in a transaction on Tuesday, July 29th. The stock was sold at an average price of $32.21, for a total value of $1,771,550.00. Following the transaction, the executive vice president directly owned 119,253 shares in the company, valued at $3,841,139.13. This trade represents a 31.56% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders own 1.30% of the company's stock.

SLM Stock Down 0.8%

Shares of NASDAQ:SLM traded down $0.27 during trading on Thursday, hitting $31.45. 292,217 shares of the company were exchanged, compared to its average volume of 2,526,664. The firm's 50 day moving average price is $32.36 and its 200-day moving average price is $30.87. The stock has a market capitalization of $6.56 billion, a P/E ratio of 15.83, a PEG ratio of 0.90 and a beta of 1.13. SLM Corporation has a 12-month low of $19.64 and a 12-month high of $34.97. The company has a debt-to-equity ratio of 3.02, a current ratio of 1.35 and a quick ratio of 1.35.

SLM (NASDAQ:SLM - Get Free Report) last released its earnings results on Thursday, July 24th. The credit services provider reported $0.32 EPS for the quarter, missing analysts' consensus estimates of $0.49 by ($0.17). The business had revenue of $403.60 million during 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%. SLM's revenue was down 21.4% compared to the same quarter last year. During the same period last year, the business posted $1.11 EPS. SLM has set its FY 2025 guidance at 3.000-3.100 EPS. On average, research analysts predict that SLM Corporation will post 3.07 earnings per share for the current fiscal year.

SLM Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Thursday, September 4th will be given 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%.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on SLM shares. Wells Fargo & Company started coverage on shares of SLM in a report on Monday. They issued an "overweight" rating and a $38.00 price target on the stock. Barclays raised their target price on shares of SLM from $38.00 to $43.00 and gave the stock an "overweight" rating in a research report on Friday, July 25th. Jefferies Financial Group upped their price objective on SLM from $33.00 to $40.00 and gave the company a "buy" rating in a research report on Wednesday, July 23rd. JPMorgan Chase & Co. upgraded SLM from a "neutral" rating to an "overweight" rating and upped their price target for the stock from $29.00 to $38.00 in a research note on Friday, July 11th. Finally, Royal Bank Of Canada reiterated an "outperform" rating on shares of SLM in a report on Monday, July 14th. Nine analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $35.00.

SLM Company 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.