SLM Corporation (NASDAQ:SLM) Sees Significant Growth in Short Interest

Key Points

• SLM Corporation experienced a 50.8% increase in short interest in September, totaling 14,280,000 shares, which represents 6.9% of the company's shares.
• Analysts have mixed sentiments on SLM, with JPMorgan upgrading their rating from "neutral" to "overweight" while others, such as Keefe, Bruyette & Woods, lowered their price target from $37.00 to $31.00.
• The company posted earnings per share (EPS) of $0.32 for the last quarter, missing estimates, while its revenue declined by 21.4% year-over-year despite beating expectations.

SLM Corporation (NASDAQ:SLM - Get Free Report) saw a large growth in short interest in the month of September. As of September 15th, there was short interest totaling 14,280,000 shares, a growth of 50.8% from the August 31st total of 9,470,000 shares. Based on an average trading volume of 2,380,000 shares, the days-to-cover ratio is currently 6.0 days. Currently, 6.9% of the shares of the company are short sold. Currently, 6.9% of the shares of the company are short sold. Based on an average trading volume of 2,380,000 shares, the days-to-cover ratio is currently 6.0 days.

Analysts Set New Price Targets

SLM has been the topic of a number of analyst reports. Keefe, Bruyette & Woods lowered their price objective on shares of SLM from $37.00 to $31.00 and set a "market perform" rating on the stock in a research report on Wednesday, October 1st. Royal Bank Of Canada restated an "outperform" rating on shares of SLM in a research note on Monday, July 14th. JPMorgan Chase & Co. upgraded shares of SLM from a "neutral" rating to an "overweight" rating and boosted their price target for the stock from $29.00 to $38.00 in a research note on Friday, July 11th. Weiss Ratings reissued a "hold (c)" rating on shares of SLM in a report on Saturday, September 27th. Finally, Morgan Stanley cut their price target on shares of SLM to $40.00 and set an "overweight" rating for the company in a report on Monday, September 29th. Eight research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $34.89.

SLM Trading Down 1.6%

NASDAQ SLM opened at $27.12 on Tuesday. The stock has a market capitalization of $5.65 billion, a P/E ratio of 13.63, a P/E/G ratio of 0.78 and a beta of 1.11. SLM has a 52-week low of $21.10 and a 52-week high of $34.97. The firm has a 50-day moving average price of $30.15 and a 200 day moving average price of $30.71. 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 posted its quarterly earnings results 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 for the quarter, compared to analysts' expectations of $370.26 million. During the same period in the prior year, the company earned $1.11 earnings per share. The company's revenue for the quarter was down 21.4% on a year-over-year basis. SLM has set its FY 2025 guidance at 3.000-3.100 EPS. Equities research analysts expect that SLM will post 3.07 EPS for the current year.

SLM Dividend Announcement

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 $0.13 dividend. The ex-dividend date of this dividend 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 (DPR) is 26.13%.

Insider Buying and Selling at SLM

In other SLM news, EVP Kerri A. Palmer sold 55,000 shares of SLM stock in a transaction that occurred on 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 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 position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 1.30% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. City Holding Co. purchased a new position in SLM in the second quarter valued at about $25,000. J.Safra Asset Management Corp purchased a new position in SLM in the first quarter valued at about $25,000. BI Asset Management Fondsmaeglerselskab A S purchased a new position in SLM in the first quarter valued at about $45,000. Fifth Third Bancorp increased its holdings in SLM by 37.7% in the first quarter. Fifth Third Bancorp now owns 1,714 shares of the credit services provider's stock valued at $50,000 after buying an additional 469 shares in the last quarter. Finally, UMB Bank n.a. increased its holdings in SLM by 355.4% in the first quarter. UMB Bank n.a. now owns 1,899 shares of the credit services provider's stock valued at $56,000 after buying an additional 1,482 shares in the last quarter. 98.94% of the stock is owned by hedge funds and other institutional investors.

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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