Keefe, Bruyette & Woods Lowers SLM (NASDAQ:SLM) Price Target to $31.00

Key Points

• Keefe, Bruyette & Woods has lowered SLM's price target from $37.00 to $31.00, indicating a potential upside of 13.18% from the stock's previous close.
• SLM's recent quarterly earnings report showed $0.32 EPS, falling short of analyst expectations, amidst a 21.4% year-over-year revenue decline.
• Despite the downgrade, eight analysts rate SLM as a Buy, contributing to an average rating of "Moderate Buy" with a consensus target price of $35.78.

SLM (NASDAQ:SLM - Get Free Report) had its price target decreased by stock analysts at Keefe, Bruyette & Woods from $37.00 to $31.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage presently has a "market perform" rating on the credit services provider's stock. Keefe, Bruyette & Woods' price target points to a potential upside of 13.18% from the stock's previous close.

Other analysts have also recently issued reports about the company. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of SLM in a research report on Monday, July 14th. Wells Fargo & Company began coverage on SLM in a research report on Monday, August 25th. They issued an "overweight" rating and a $38.00 price objective on the stock. Barclays upped their price objective on SLM from $38.00 to $43.00 and gave the company an "overweight" rating in a research report on Friday, July 25th. JPMorgan Chase & Co. raised SLM from a "neutral" rating to an "overweight" rating and upped their price objective for the company from $29.00 to $38.00 in a research report on Friday, July 11th. Finally, 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. Eight equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, SLM presently has an average rating of "Moderate Buy" and a consensus target price of $35.78.

SLM Trading Down 1.0%

NASDAQ:SLM traded down $0.29 during mid-day trading on Wednesday, reaching $27.39. 1,607,795 shares of the company's stock traded hands, compared to its average volume of 2,607,820. SLM has a 12-month low of $21.10 and a 12-month high of $34.97. The firm has a market capitalization of $5.71 billion, a price-to-earnings ratio of 13.78, a PEG ratio of 0.80 and a beta of 1.11. The company has a debt-to-equity ratio of 3.02, a current ratio of 1.35 and a quick ratio of 1.35. The company has a 50 day moving average price of $30.58 and a 200-day moving average price of $30.76.

SLM (NASDAQ:SLM - Get Free Report) last announced its quarterly earnings results on Thursday, July 24th. The credit services provider reported $0.32 earnings per share (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 for the quarter, compared to analysts' expectations of $370.26 million. During the same quarter in the prior year, the firm earned $1.11 EPS. The firm's revenue for the quarter was down 21.4% on a year-over-year basis. SLM has set its FY 2025 guidance at 3.000-3.100 EPS. On average, sell-side analysts predict that SLM will post 3.07 earnings per share for the current year.

Insider Activity at SLM

In other news, EVP Kerri A. Palmer sold 55,000 shares of the company'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 completion of the sale, the executive vice president directly owned 119,253 shares in the company, valued at $3,841,139.13. This represents a 31.56% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. 1.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On SLM

A number of institutional investors have recently bought and sold shares of the business. J.Safra Asset Management Corp bought a new position in shares of SLM during the 1st quarter valued at about $25,000. City Holding Co. bought a new position in shares of SLM during the 2nd quarter valued at about $25,000. BI Asset Management Fondsmaeglerselskab A S bought a new position in shares of SLM during the 1st quarter valued at about $45,000. Fifth Third Bancorp boosted its holdings 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 valued at $50,000 after purchasing an additional 469 shares during the last quarter. Finally, UMB Bank n.a. boosted its holdings in shares of SLM by 355.4% during the 1st quarter. UMB Bank n.a. now owns 1,899 shares of the credit services provider's stock valued at $56,000 after purchasing an additional 1,482 shares during the last quarter. Hedge funds and other institutional investors own 98.94% of the company's stock.

About SLM

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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