SLM (NASDAQ:SLM) Hits New 12-Month Low - Here's Why

Key Points

• SLM shares hit a new 52-week low, trading as low as $16.64, well below their 50-day and 200-day moving averages.
• The company reported a quarterly loss of $0.19 per share, missing the $0.17 consensus estimate; revenue fell 31.3% year over year to $375.47 million, also below forecasts.
• Analysts have cut price targets, though their average rating remains “Hold” with an average target of $26.44. SLM also announced a quarterly dividend of $0.13 per share.

Shares of SLM Corporation (NASDAQ:SLM - Get Free Report) hit a new 52-week low on Tuesday. The company traded as low as $16.64 and last traded at $16.8930, with a volume of 836,248 shares changing hands. The stock had previously closed at $16.91.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. Weiss Ratings downgraded shares of SLM from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, October 23rd. Wells Fargo & Company reduced their target price on shares of SLM from $28.00 to $24.00 and set an "overweight" rating on the stock in a report on Friday, October 23rd. Wall Street Zen lowered shares of SLM from a "hold" rating to a "sell" rating in a report on Saturday, July 25th. TD Cowen decreased their price target on shares of SLM from $32.00 to $27.00 and set a "buy" rating for the company in a research report on Friday, October 23rd. Finally, JPMorgan Chase & Co. lowered their price target on SLM from $25.00 to $22.00 and set an "underweight" rating for the company in a report on Monday, October 12th. Five investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $26.44.

SLM Price Performance

The company has a market capitalization of $3.09 billion, a P/E ratio of 6.12 and a beta of 1.01. The company has a fifty day moving average price of $22.56 and a 200 day moving average price of $23.32. The company has a debt-to-equity ratio of 2.76, a current ratio of 1.23 and a quick ratio of 1.16.

SLM (NASDAQ:SLM - Get Free Report) last announced its quarterly earnings results on Thursday, October 22nd. The credit services provider reported ($0.19) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.17 by ($0.36). SLM had a return on equity of 26.34% and a net margin of 20.43%. The company had revenue of $375.47 million during the quarter, compared to the consensus estimate of $453.34 million. During the same period last year, the business posted $0.63 EPS. The company's revenue for the quarter was down 31.3% on a year-over-year basis. On average, sell-side analysts forecast that SLM Corporation will post 2.02 EPS for the current fiscal year.

SLM Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Friday, December 4th will be paid a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend is Friday, December 4th. SLM's payout ratio is currently 18.84%.

Institutional Investors Weigh In On SLM

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Edgestream Partners L.P. bought a new position in shares of SLM during the 3rd quarter valued at about $8,215,000. IFG Advisory LLC lifted its stake in SLM by 29,168.0% during the third quarter. IFG Advisory LLC now owns 57,658 shares of the credit services provider's stock valued at $1,305,000 after purchasing an additional 57,461 shares during the last quarter. Fifth Third Bancorp lifted its stake in SLM by 30.5% during the third quarter. Fifth Third Bancorp now owns 59,790 shares of the credit services provider's stock valued at $1,353,000 after purchasing an additional 13,988 shares during the last quarter. Lido Advisors LLC boosted its holdings in SLM by 31.9% during the third quarter. Lido Advisors LLC now owns 11,133 shares of the credit services provider's stock worth $252,000 after buying an additional 2,695 shares in the last quarter. Finally, Ethic Inc. boosted its holdings in SLM by 15.5% during the third quarter. Ethic Inc. now owns 10,213 shares of the credit services provider's stock worth $231,000 after buying an additional 1,367 shares in the last quarter. 98.94% of the stock is currently owned by institutional investors.

SLM Company Profile

SLM Corporation, commonly known as Sallie Mae, is a U.S.-based education finance company. Through Sallie Mae Bank, it primarily provides private student loans to undergraduate and graduate students, as well as loans for career training and other education-related expenses. The company also offers consumer banking products, including savings accounts and certificates of deposit. Its services include supporting borrowers through loan application, repayment and customer service processes. Founded in 1972 as the Student Loan Marketing Association, the organization was later privatized and became known as Sallie Mae.

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