SLM (NASDAQ:SLM) Hits New 12-Month Low - Should You Sell?

Key Points

• SLM fell to a new 52-week low of $17.34, well below its 50-day and 200-day moving averages near $23.50.
• Analyst sentiment is mixed but averages to a “Hold” rating, with a consensus price target of $26.44; recent firms lowered targets, while ratings include five Buys, five Holds, and one Sell.
• Recent quarterly results were weak: SLM reported a $0.19 loss per share versus an expected $0.17 profit, while revenue fell 31.3% year over year. The company maintains a $0.13 quarterly dividend, implying a 3.0% annual yield.

SLM Corporation (NASDAQ:SLM - Get Free Report) hit a new 52-week low during mid-day trading on Tuesday. The stock traded as low as $17.34 and last traded at $17.3130, with a volume of 633,058 shares changing hands. The stock had previously closed at $17.88.

Analyst Upgrades and Downgrades

SLM has been the topic of several research reports. Royal Bank Of Canada lowered their price target on shares of SLM from $28.00 to $26.00 and set an "outperform" rating on the stock in a research report on Friday, October 23rd. Wall Street Zen downgraded SLM from a "hold" rating to a "sell" rating in a research report on Saturday, July 25th. JPMorgan Chase & Co. reduced their target price on SLM from $25.00 to $22.00 and set an "underweight" rating on the stock in a research note on Monday, October 12th. TD Cowen lowered their target price on SLM from $32.00 to $27.00 and set a "buy" rating on the stock in a report on Friday, October 23rd. Finally, Weiss Ratings downgraded SLM from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, October 23rd. Five equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, SLM presently has an average rating of "Hold" and a consensus target price of $26.44.

SLM Stock Performance

The stock's 50-day moving average is $23.46 and its 200-day moving average is $23.54. The company has a debt-to-equity ratio of 2.76, a current ratio of 1.23 and a quick ratio of 1.16. The stock has a market cap of $3.20 billion, a price-to-earnings ratio of 6.35, a price-to-earnings-growth ratio of 1.88 and a beta of 0.96.

SLM (NASDAQ:SLM - Get Free Report) last announced its quarterly earnings data on Thursday, October 22nd. The credit services provider reported ($0.19) EPS for the quarter, missing analysts' consensus estimates of $0.17 by ($0.36). The business had revenue of $375.47 million during the quarter, compared to analysts' expectations of $453.34 million. SLM had a net margin of 20.43% and a return on equity of 26.34%. SLM's revenue for the quarter was down 31.3% on a year-over-year basis. During the same period in the prior year, the firm earned $0.63 EPS. Analysts anticipate that SLM Corporation will post 2.02 EPS for the current fiscal year.

SLM Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Friday, December 4th will be issued a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date is Friday, December 4th. SLM's payout ratio is presently 18.84%.

Hedge Funds Weigh In On SLM

Several institutional investors and hedge funds have recently bought and sold shares of SLM. Root Financial Partners LLC purchased a new position in SLM in the third quarter valued at approximately $28,000. Heritage Family Offices LLP acquired a new position in SLM during the third quarter valued at approximately $39,000. Versant Capital Management Inc grew its stake in SLM by 48.7% during the third quarter. Versant Capital Management Inc now owns 2,016 shares of the credit services provider's stock worth $46,000 after buying an additional 660 shares during the period. Allworth Financial LP purchased a new stake in SLM during the second quarter worth approximately $55,000. Finally, Nykredit A S acquired a new stake in shares of SLM in the second quarter worth $77,000. Institutional investors and hedge funds own 98.94% of the company's stock.

About SLM

SLM Corp., commonly known as Sallie Mae, is a financial services company focused on helping students and families finance higher education. Its primary business is the origination and servicing of private education loans, which can help cover tuition, fees, books, housing and other eligible education-related expenses not fully covered by federal student aid.

The company offers private student loans for undergraduate and graduate education, as well as loans for career-training programs and other education needs.

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