Watchtower Advisors LP Takes $4.34 Million Position in SLM Corporation (NASDAQ:SLM)

Key Points

• Watchtower Advisors LP has acquired a new position in SLM Corporation, purchasing 149,042 shares valued at approximately $4.34 million, making it the fund's 12th largest investment.
• SLM stock recently missed analysts' earnings estimates, reporting $0.32 EPS for the quarter, while generating revenue of $403.6 million, down 21.4% year-over-year.
• The company has declared a quarterly dividend of $0.13 per share, with the annualized yield currently at 1.6%.

Watchtower Advisors LP purchased a new position in SLM Corporation (NASDAQ:SLM - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 149,042 shares of the credit services provider's stock, valued at approximately $4,337,000. SLM accounts for 3.1% of Watchtower Advisors LP's portfolio, making the stock its 12th biggest position. Watchtower Advisors LP owned 0.07% of SLM as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also recently made changes to their positions in the stock. LPL Financial LLC raised its position in SLM by 18.5% in the fourth quarter. LPL Financial LLC now owns 12,954 shares of the credit services provider's stock worth $357,000 after acquiring an additional 2,019 shares during the period. JPMorgan Chase & Co. raised its holdings in SLM by 12.7% in the 4th quarter. JPMorgan Chase & Co. now owns 754,457 shares of the credit services provider's stock worth $20,808,000 after purchasing an additional 85,194 shares during the period. O Shaughnessy Asset Management LLC lifted its position in SLM by 31.8% during the fourth quarter. O Shaughnessy Asset Management LLC now owns 18,668 shares of the credit services provider's stock valued at $515,000 after purchasing an additional 4,501 shares in the last quarter. Wells Fargo & Company MN grew its holdings in SLM by 7.7% during the fourth quarter. Wells Fargo & Company MN now owns 35,056 shares of the credit services provider's stock valued at $967,000 after purchasing an additional 2,506 shares during the period. Finally, Russell Investments Group Ltd. grew its holdings in SLM by 4.4% during the fourth quarter. Russell Investments Group Ltd. now owns 648,305 shares of the credit services provider's stock valued at $17,877,000 after purchasing an additional 27,432 shares during the period. 98.94% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at SLM

In other SLM news, EVP Kerri A. Palmer sold 55,000 shares of SLM stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $32.21, for a total transaction of $1,771,550.00. Following the completion of the transaction, the executive vice president directly owned 119,253 shares of the company's stock, valued at $3,841,139.13. The trade was a 31.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.30% of the stock is currently owned by corporate insiders.

SLM Price Performance

SLM stock opened at $31.56 on Friday. The company has a fifty day simple moving average of $32.45 and a two-hundred day simple moving average of $30.62. SLM Corporation has a 52 week low of $19.64 and a 52 week high of $34.97. The company has a quick ratio of 1.35, a current ratio of 1.35 and a debt-to-equity ratio of 3.02. The firm has a market capitalization of $6.58 billion, a P/E ratio of 15.86, a price-to-earnings-growth ratio of 0.90 and a beta of 1.13.

SLM (NASDAQ:SLM - Get Free Report) last announced its quarterly 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). SLM had a net margin of 15.46% and a return on equity of 21.93%. The business had revenue of $403.60 million during the quarter, compared to the consensus estimate of $370.26 million. During the same period in the previous year, the business posted $1.11 EPS. The firm's revenue was down 21.4% on a year-over-year basis. Analysts anticipate that SLM Corporation will post 3.07 earnings per share for the current fiscal year.

SLM Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Thursday, September 4th will be given a $0.13 dividend. The ex-dividend date is Thursday, September 4th. This represents a $0.52 dividend on an annualized basis and a yield of 1.6%. SLM's dividend payout ratio (DPR) is currently 26.13%.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the company. Wells Fargo & Company boosted their price objective on SLM from $34.00 to $38.00 and gave the company an "overweight" rating in a research note on Wednesday, May 14th. JPMorgan Chase & Co. raised shares of SLM from a "neutral" rating to an "overweight" rating and increased their price objective for the stock from $29.00 to $38.00 in a research note on Friday, July 11th. Jefferies Financial Group raised their price objective on shares of SLM from $33.00 to $40.00 and gave the company a "buy" rating in a research report on Wednesday, July 23rd. Royal Bank Of Canada restated an "outperform" rating on shares of SLM in a research note on Monday, July 14th. Finally, Morgan Stanley reiterated an "overweight" rating and issued a $40.00 price target (up previously from $33.00) on shares of SLM in a research note on Wednesday, May 21st. One equities research analyst has rated the stock with a hold rating and nine have issued a buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price 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.

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