Wedbush Reaffirms Outperform Rating for SLM (NASDAQ:SLM)

Wedbush reiterated their outperform rating on shares of SLM (NASDAQ:SLM - Free Report) in a research note released on Thursday, Benzinga reports. They currently have a $28.00 price objective on the credit services provider's stock.

A number of other research analysts also recently issued reports on SLM. Royal Bank of Canada boosted their price target on shares of SLM from $24.00 to $25.00 and gave the stock an outperform rating in a research report on Thursday, April 25th. JPMorgan Chase & Co. increased their price target on SLM from $22.00 to $23.00 and gave the stock a neutral rating in a report on Thursday, April 25th. Wells Fargo & Company lifted their price objective on SLM from $22.00 to $24.00 and gave the stock an overweight rating in a research report on Thursday, April 18th. Finally, TheStreet upgraded SLM from a c+ rating to a b rating in a report on Wednesday, January 24th. Three equities research analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. According to MarketBeat, the company presently has an average rating of Moderate Buy and a consensus target price of $21.32.

SLM Price Performance

Shares of NASDAQ SLM traded up $0.06 during mid-day trading on Thursday, reaching $21.07. The company had a trading volume of 1,206,498 shares, compared to its average volume of 2,026,379. The company has a debt-to-equity ratio of 2.67, a quick ratio of 1.23 and a current ratio of 1.23. The firm has a market cap of $4.63 billion, a price-to-earnings ratio of 6.58, a PEG ratio of 0.43 and a beta of 1.17. The business's 50-day simple moving average is $21.27 and its 200 day simple moving average is $19.04. SLM has a one year low of $12.26 and a one year high of $22.74.

SLM (NASDAQ:SLM - Get Free Report) last announced its quarterly earnings data on Wednesday, April 24th. The credit services provider reported $1.27 earnings per share for the quarter, topping the consensus estimate of $1.09 by $0.18. SLM had a return on equity of 45.65% and a net margin of 25.15%. The business had revenue of $837.72 million during the quarter, compared to the consensus estimate of $376.43 million. During the same period in the prior year, the company earned $0.47 EPS. On average, research analysts predict that SLM will post 2.75 earnings per share for the current fiscal year.

SLM Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 17th. Investors of record on Thursday, June 6th will be paid a dividend of $0.11 per share. The ex-dividend date of this dividend is Thursday, June 6th. This represents a $0.44 annualized dividend and a yield of 2.09%. SLM's dividend payout ratio is currently 13.75%.

SLM announced that its board has initiated a stock buyback plan on Wednesday, January 24th that allows the company to buyback $650.00 million in shares. This buyback authorization allows the credit services provider to buy up to 14.5% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's board believes its shares are undervalued.

Insiders Place Their Bets

In other SLM news, SVP Jonathan Boyles sold 94,078 shares of SLM 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 sale, the senior vice president now directly owns 52,751 shares in the company, valued at $1,093,000.72. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Corporate insiders own 0.91% of the company's stock.

Hedge Funds Weigh In On SLM

A number of large investors have recently added to or reduced their stakes in the business. Hexagon Capital Partners LLC boosted its stake in shares of 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 during the period. Blue Trust Inc. increased its position in shares of SLM by 81.4% in the fourth quarter. Blue Trust Inc. now owns 1,328 shares of the credit services provider's stock valued at $25,000 after acquiring an additional 596 shares during the period. Daiwa Securities Group Inc. bought a new position in shares of SLM during the fourth quarter valued at about $29,000. SYSTM Wealth Solutions LLC boosted its holdings in shares of SLM by 37.0% during the first quarter. SYSTM Wealth Solutions LLC now owns 1,828 shares of the credit services provider's stock worth $40,000 after purchasing an additional 494 shares during the period. Finally, Neo Ivy Capital Management bought a new stake in shares of SLM in the fourth quarter worth about $40,000. 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.