SLM Corporation (NASDAQ:SLM) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• SLM Corporation has received an average analyst rating of "Moderate Buy", with one hold rating and eight buy ratings issued by nine brokerages.
• The company's Q2 earnings report showed an EPS of $0.32, missing the consensus estimate of $0.49, while revenue decreased by 21.4% year-over-year, totaling $403.60 million.
• SLM announced a quarterly dividend of $0.13 per share, translating to an annual yield of 1.9% and a payout ratio of 26.13%.

SLM Corporation (NASDAQ:SLM - Get Free Report) has received an average recommendation of "Moderate Buy" from the nine brokerages that are covering the stock, Marketbeat.com reports. One research analyst has rated the stock with a hold rating and eight have given a buy rating to the company. The average 1-year price objective among analysts that have issued a report on the stock in the last year is $35.7778.

Several research analysts recently issued reports on SLM shares. Royal Bank Of Canada reissued an "outperform" rating on shares of SLM in a research note on Monday, July 14th. JPMorgan Chase & Co. raised SLM from a "neutral" rating to an "overweight" rating and increased their price objective for the stock from $29.00 to $38.00 in a research note on Friday, July 11th. Keefe, Bruyette & Woods lowered their target price on SLM from $37.00 to $31.00 and set a "market perform" rating for the company in a report on Wednesday. Wells Fargo & Company began coverage on SLM in a report on Monday, August 25th. They set an "overweight" rating and a $38.00 target price for the company. Finally, Barclays upped their target price on SLM from $38.00 to $43.00 and gave the stock an "overweight" rating in a report on Friday, July 25th.

Insiders Place Their Bets

In other SLM news, EVP Kerri A. Palmer sold 55,000 shares of the company's stock in a transaction on Tuesday, July 29th. The stock was sold at an average price of $32.21, for a total transaction of $1,771,550.00. Following the completion of the sale, the executive vice president owned 119,253 shares in the company, valued at $3,841,139.13. This represents a 31.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 1.30% of the stock is currently owned by corporate insiders.

Institutional Trading of SLM

Hedge funds and other institutional investors have recently made changes to their positions in the business. City Holding Co. purchased a new stake in shares of SLM during the 2nd quarter valued at $25,000. J.Safra Asset Management Corp purchased a new stake in shares of SLM during the 1st quarter valued at $25,000. BI Asset Management Fondsmaeglerselskab A S purchased a new stake in shares of SLM during the 1st quarter valued at $45,000. Fifth Third Bancorp lifted its holdings in shares of SLM by 37.7% during the 1st quarter. Fifth Third Bancorp now owns 1,714 shares of the credit services provider's stock valued at $50,000 after purchasing an additional 469 shares during the last quarter. Finally, UMB Bank n.a. lifted its holdings in shares of SLM by 355.4% during the 1st quarter. UMB Bank n.a. now owns 1,899 shares of the credit services provider's stock valued at $56,000 after purchasing an additional 1,482 shares during the last quarter. Hedge funds and other institutional investors own 98.94% of the company's stock.

SLM Stock Down 0.6%

Shares of NASDAQ:SLM opened at $27.23 on Friday. SLM has a 52-week low of $21.10 and a 52-week high of $34.97. The stock has a market cap of $5.68 billion, a P/E ratio of 13.68, a price-to-earnings-growth ratio of 0.78 and a beta of 1.11. The business's 50 day moving average is $30.37 and its 200 day moving average is $30.72. The company has a quick ratio of 1.35, a current ratio of 1.35 and a debt-to-equity ratio of 3.02.

SLM (NASDAQ:SLM - Get Free Report) last announced its quarterly earnings data on Thursday, July 24th. The credit services provider reported $0.32 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.49 by ($0.17). SLM had a return on equity of 21.93% and a net margin of 15.46%.The firm had revenue of $403.60 million during the quarter, compared to the consensus estimate of $370.26 million. During the same period last year, the company earned $1.11 EPS. The firm's revenue for the quarter was down 21.4% compared to the same quarter last year. SLM has set its FY 2025 guidance at 3.000-3.100 EPS. Sell-side analysts predict that SLM will post 3.07 EPS for the current year.

SLM Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, September 15th. Shareholders of record on Thursday, September 4th were issued a dividend of $0.13 per share. The ex-dividend date was Thursday, September 4th. This represents a $0.52 dividend on an annualized basis and a yield of 1.9%. SLM's dividend payout ratio is currently 26.13%.

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.

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