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

Key Points

• SLM Corporation has received a consensus rating of "Moderate Buy" from analysts, with nine out of ten firms recommending a buy and one a hold, setting an average price target of $35.00.
• The company reported earnings of $0.32 EPS for the quarter, falling short of expectations, but generated revenue of $403.60 million, exceeding forecasts of $370.26 million.
• SLM declared a quarterly dividend of $0.13, representing a yield of 1.6%, set to be paid on September 15th to investors of record as of September 4th.

SLM Corporation (NASDAQ:SLM - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the ten research firms that are currently covering the firm, MarketBeat Ratings reports. One analyst has rated the stock with a hold rating and nine have assigned a buy rating to the company. The average 12 month price objective among brokerages that have updated their coverage on the stock in the last year is $35.00.

SLM has been the topic of several research reports. Barclays raised their price objective on SLM from $38.00 to $43.00 and gave the company an "overweight" rating in a research report on Friday, July 25th. Wells Fargo & Company raised their price objective on SLM from $34.00 to $38.00 and gave the company an "overweight" rating in a research report on Wednesday, May 14th. Morgan Stanley reissued an "overweight" rating and issued a $40.00 price objective (up from $33.00) on shares of SLM in a research report on Wednesday, May 21st. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of SLM in a research report on Monday, July 14th. Finally, Jefferies Financial Group lifted their target price on SLM from $33.00 to $40.00 and gave the stock a "buy" rating in a research report on Wednesday, July 23rd.

SLM Trading Up 1.6%

NASDAQ:SLM opened at $33.09 on Thursday. The business's 50-day moving average is $32.45 and its two-hundred day moving average is $30.71. The company has a debt-to-equity ratio of 3.02, a current ratio of 1.35 and a quick ratio of 1.35. SLM has a 12 month low of $19.64 and a 12 month high of $34.97. The firm has a market capitalization of $6.90 billion, a PE ratio of 16.63, a price-to-earnings-growth ratio of 0.92 and a beta of 1.13.

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

SLM Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Thursday, September 4th will be paid a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date is Thursday, September 4th. SLM's dividend payout ratio (DPR) is 26.13%.

Insider Buying and Selling

In related news, EVP Kerri A. Palmer sold 55,000 shares of SLM stock in a transaction dated Tuesday, July 29th. The stock was sold at an average price of $32.21, for a total value of $1,771,550.00. Following the completion of the transaction, the executive vice president directly owned 119,253 shares in the company, valued at approximately $3,841,139.13. This trade represents a 31.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 1.30% of the company's stock.

Hedge Funds Weigh In On SLM

Hedge funds have recently bought and sold shares of the company. City Holding Co. acquired a new position in SLM in the second quarter worth about $25,000. J.Safra Asset Management Corp acquired a new position in SLM in the first quarter worth about $25,000. BI Asset Management Fondsmaeglerselskab A S acquired a new position in SLM in the first quarter worth about $45,000. Fifth Third Bancorp grew its stake in SLM by 37.7% in the first quarter. Fifth Third Bancorp now owns 1,714 shares of the credit services provider's stock worth $50,000 after purchasing an additional 469 shares in the last quarter. Finally, UMB Bank n.a. grew its holdings in shares of SLM by 355.4% during the first 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. 98.94% of the stock is currently owned by institutional investors and hedge funds.

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.

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