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

Key Points

• SLM shares fell to a new 52-week low of $17.69, well below their 50-day and 200-day moving averages of $24.14 and $23.73, respectively.
• Analysts have lowered price targets, resulting in a consensus “Hold” rating and a $26.44 average target; ratings include five Buys, five Holds and one Sell.
• SLM reported a quarterly loss of $0.19 per share and $375.5 million in revenue, missing estimates and marking a 31.3% year-over-year revenue decline. The company maintained a quarterly dividend of $0.13, equivalent to a 3.0% yield.

SLM Corporation (NASDAQ:SLM - Get Free Report)'s share price hit a new 52-week low during trading on Wednesday. The company traded as low as $17.69 and last traded at $17.6390, with a volume of 2,366,247 shares traded. The stock had previously closed at $18.77.

Analysts Set New Price Targets

Several analysts have weighed in on the company. JPMorgan Chase & Co. lowered their price objective on SLM from $25.00 to $22.00 and set an "underweight" rating for the company in a research report on Monday, October 12th. Barclays cut their target price on shares of SLM from $26.00 to $22.00 and set an "equal weight" rating on the stock in a report on Friday, October 23rd. TD Cowen decreased their target price on shares of SLM from $32.00 to $27.00 and set a "buy" rating on the stock in a research note on Friday, October 23rd. Royal Bank Of Canada lowered their price target on shares of SLM from $28.00 to $26.00 and set an "outperform" rating for the company in a report on Friday, October 23rd. Finally, Wall Street Zen cut shares of SLM from a "hold" rating to a "sell" rating in a research report on Saturday, July 25th. Five 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. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $26.44.

SLM Price Performance

The business has a 50 day moving average of $24.14 and a 200 day moving average of $23.73. The company has a market cap of $3.18 billion, a PE ratio of 6.35, a price-to-earnings-growth ratio of 2.07 and a beta of 0.96. 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 posted its earnings results on Thursday, October 22nd. The credit services provider reported ($0.19) 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 analysts' expectations of $453.34 million. During the same period in the prior year, the business posted $0.63 earnings per share. The company's revenue for the quarter was down 31.3% on a year-over-year basis. As a group, research analysts predict that SLM Corporation will post 2.00 EPS for the current year.

SLM Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders 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 dividend payout ratio is 18.84%.

Hedge Funds Weigh In On SLM

Several large investors have recently made changes to their positions in the business. BlackRock Inc. purchased a new position in SLM in the 2nd quarter worth approximately $455,576,000. PDT Partners LLC bought a new position in SLM in the 2nd quarter valued at approximately $5,261,000. Jupiter Topco LLC purchased a new stake in SLM during the 2nd quarter valued at $2,236,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in SLM during the 2nd quarter valued at $4,184,000. Finally, Bank of America Corp DE bought a new stake in shares of SLM in the 2nd quarter worth $37,268,000. 98.94% of the stock is currently owned by hedge funds and other institutional investors.

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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