SLM (NASDAQ:SLM) Hits New 12-Month High After Dividend Announcement

SLM Co. (NASDAQ:SLM - Get Free Report) shares hit a new 52-week high on Tuesday following a dividend announcement from the company. The stock traded as high as $21.97 and last traded at $21.95, with a volume of 566427 shares trading hands. The stock had previously closed at $21.32.

The newly announced dividend which will be paid on Monday, June 17th. Stockholders of record on Thursday, June 6th will be given a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a dividend yield of 2.01%. SLM's payout ratio is 18.33%.

Analysts Set New Price Targets

Several brokerages have recently commented on SLM. Citigroup upgraded shares of SLM from a "neutral" rating to a "buy" rating and raised their price objective for the company from $14.00 to $23.00 in a research report on Tuesday, January 16th. Wells Fargo & Company lifted their price target on shares of SLM from $22.00 to $24.00 and gave the company an "overweight" rating in a report on Thursday, April 18th. Royal Bank of Canada lifted their price target on shares of SLM from $21.00 to $22.00 and gave the company an "outperform" rating in a report on Thursday, January 25th. JPMorgan Chase & Co. lifted their price target on shares of SLM from $20.00 to $22.00 and gave the company a "neutral" rating in a report on Wednesday, April 3rd. Finally, Deutsche Bank Aktiengesellschaft assumed coverage on shares of SLM in a report on Wednesday, January 10th. They issued a "buy" rating and a $25.00 price target on the stock. Three investment analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $20.32.

SLM Stock Performance

The company has a debt-to-equity ratio of 3.21, a quick ratio of 1.22 and a current ratio of 1.22. The firm has a market cap of $4.83 billion, a P/E ratio of 9.14, a price-to-earnings-growth ratio of 0.43 and a beta of 1.16. The firm's fifty day moving average price is $20.84 and its 200 day moving average price is $18.12.

SLM (NASDAQ:SLM - Get Free Report) last posted its quarterly earnings results on Tuesday, January 30th. The credit services provider reported $0.72 EPS for the quarter, missing the consensus estimate of $0.87 by ($0.15). SLM had a net margin of 20.65% and a return on equity of 36.86%. The business had revenue of $725.66 million during the quarter, compared to the consensus estimate of $379.20 million. During the same quarter in the prior year, the firm posted ($0.33) EPS. Sell-side analysts expect that SLM Co. will post 2.72 EPS for the current fiscal year.

SLM declared that its board has approved a stock repurchase program on Wednesday, January 24th that permits the company to buyback $650.00 million in shares. This buyback authorization permits the credit services provider to reacquire up to 14.5% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling

In related news, SVP Jonathan Boyles sold 94,078 shares of the business's stock in a transaction that occurred on Thursday, February 29th. The shares were sold at an average price of $20.72, for a total transaction of $1,949,296.16. Following the completion of the transaction, the senior vice president now owns 52,751 shares in the company, valued at approximately $1,093,000.72. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. In other news, EVP Donna F. Vieira sold 12,308 shares of the company's stock in a transaction on Tuesday, January 30th. The shares were sold at an average price of $20.27, for a total value of $249,483.16. Following the sale, the executive vice president now directly owns 126,500 shares of the company's stock, valued at approximately $2,564,155. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Jonathan Boyles sold 94,078 shares of the stock in a transaction on Thursday, February 29th. The stock was sold at an average price of $20.72, for a total transaction of $1,949,296.16. Following the sale, the senior vice president now directly owns 52,751 shares in the company, valued at $1,093,000.72. The disclosure for this sale can be found here. 0.91% of the stock is currently owned by company insiders.

Institutional Trading of SLM

Hedge funds have recently added to or reduced their stakes in the company. Blue Trust Inc. lifted its holdings in SLM by 81.4% during the fourth quarter. Blue Trust Inc. now owns 1,328 shares of the credit services provider's stock valued at $25,000 after purchasing an additional 596 shares in the last quarter. Daiwa Securities Group Inc. purchased a new position in SLM during the fourth quarter valued at $29,000. Hexagon Capital Partners LLC lifted its holdings in SLM by 1,373.3% during the first quarter. Hexagon Capital Partners LLC now owns 1,326 shares of the credit services provider's stock valued at $29,000 after purchasing an additional 1,236 shares in the last quarter. Neo Ivy Capital Management purchased a new position in SLM during the fourth quarter valued at $40,000. Finally, Headlands Technologies LLC lifted its holdings in SLM by 46.4% during the fourth quarter. Headlands Technologies LLC now owns 2,330 shares of the credit services provider's stock valued at $45,000 after purchasing an additional 739 shares in the last quarter. 98.94% of the stock is owned by hedge funds and other institutional investors.

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.