SLM (NASDAQ:SLM) Announces Earnings Results

Key Points

• SLM (NASDAQ:SLM) reported earnings of $0.63 EPS for the quarter, falling short of analysts' expectations of $0.83 EPS by $0.20.
• The company announced a quarterly dividend of $0.13 per share, with an annualized yield of 1.9%, to be paid on December 15th.
• Analysts' ratings are mixed, with seven giving it a Buy rating while Barclays lowered its price target from $43.00 to $35.00 and downgraded its rating.

SLM (NASDAQ:SLM - Get Free Report) posted its quarterly earnings data on Thursday. The credit services provider reported $0.63 EPS for the quarter, missing analysts' consensus estimates of $0.84 by ($0.21), Zacks reports. The business had revenue of $546.00 million during the quarter, compared to analyst estimates of $382.50 million. SLM had a net margin of 15.46% and a return on equity of 21.93%. During the same quarter in the prior year, the firm posted ($0.23) earnings per share.

SLM Price Performance

SLM stock opened at $26.73 on Friday. SLM has a 52-week low of $21.10 and a 52-week high of $34.97. The firm has a fifty day moving average of $28.65 and a 200-day moving average of $30.46. The firm has a market capitalization of $5.57 billion, a P/E ratio of 13.43, a PEG ratio of 0.77 and a beta of 1.11. 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 Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, December 15th. Stockholders of record on Thursday, December 4th will be given a $0.13 dividend. The ex-dividend date of this dividend is Thursday, December 4th. This represents a $0.52 annualized dividend and a dividend yield of 1.9%. SLM's dividend payout ratio is presently 26.13%.

Insider Buying and Selling at SLM

In other news, EVP Kerri A. Palmer sold 55,000 shares of the company's stock in a transaction on Tuesday, July 29th. The shares were 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 represents a 31.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 1.30% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Captrust Financial Advisors increased its holdings in shares of SLM by 6.1% in the 2nd quarter. Captrust Financial Advisors now owns 36,889 shares of the credit services provider's stock worth $1,210,000 after acquiring an additional 2,109 shares during the period. EverSource Wealth Advisors LLC increased its holdings in shares of SLM by 118.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,995 shares of the credit services provider's stock worth $131,000 after acquiring an additional 2,164 shares during the period. Goldman Sachs Group Inc. increased its holdings in shares of SLM by 33.4% in the 1st quarter. Goldman Sachs Group Inc. now owns 547,724 shares of the credit services provider's stock worth $16,087,000 after acquiring an additional 137,285 shares during the period. Dynamic Technology Lab Private Ltd acquired a new position in SLM during the 1st quarter valued at about $263,000. Finally, NewEdge Advisors LLC increased its stake in SLM by 6.6% during the 1st quarter. NewEdge Advisors LLC now owns 21,350 shares of the credit services provider's stock valued at $627,000 after buying an additional 1,319 shares during the period. 98.94% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several brokerages have recently weighed in on SLM. Wells Fargo & Company began coverage on shares of SLM in a report on Monday, August 25th. They issued an "overweight" rating and a $38.00 target price on the stock. Wall Street Zen downgraded shares of SLM from a "hold" rating to a "sell" rating in a report on Saturday, October 11th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of SLM in a report on Wednesday, October 8th. Morgan Stanley lowered their target price on shares of SLM to $40.00 and set an "overweight" rating on the stock in a report on Monday, September 29th. Finally, Keefe, Bruyette & Woods lowered their target price on shares of SLM from $37.00 to $31.00 and set a "market perform" rating on the stock in a report on Wednesday, October 1st. Six analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $33.75.

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.