SLM (NASDAQ:SLM) Cut to "Sell" at Wall Street Zen

Key Points

• SLM (NASDAQ:SLM) has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, indicating increased bearish sentiment toward the stock.
• Despite the downgrade, seven analysts still maintain a Buy rating on SLM, with an average price target of $33.89.
• The company reported earnings of $1.15 per share for its last quarter, with a net margin of 15.46% and a return on equity of 21.93%.

SLM (NASDAQ:SLM - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

A number of other brokerages have also commented on SLM. Wells Fargo & Company began coverage on shares of SLM in a research report on Monday, August 25th. They issued an "overweight" rating and a $38.00 price objective on the stock. Weiss Ratings reissued a "hold (c)" rating on shares of SLM in a research report on Wednesday. Royal Bank Of Canada reissued an "outperform" rating on shares of SLM in a research report on Monday, July 14th. Morgan Stanley cut their price objective on shares of SLM to $40.00 and set an "overweight" rating on the stock in a research report on Monday, September 29th. Finally, Keefe, Bruyette & Woods cut 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. Seven analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $33.89.

SLM Price Performance

NASDAQ:SLM opened at $25.67 on Friday. The company has a 50-day moving average of $29.73 and a 200-day moving average of $30.59. The company has a market capitalization of $5.35 billion, a price-to-earnings ratio of 12.90, a PEG ratio of 0.75 and a beta of 1.11. SLM has a 52 week low of $21.10 and a 52 week high of $34.97. The company has a debt-to-equity ratio of 3.02, a quick ratio of 1.35 and a current ratio of 1.35.

SLM (NASDAQ:SLM - Get Free Report) last announced its quarterly earnings results on Monday, February 14th. The credit services provider reported $1.15 earnings per share for the quarter. SLM had a net margin of 15.46% and a return on equity of 21.93%. The firm had revenue of ($3.44) million for the quarter. SLM has set its FY 2022 guidance at $2.800-$3.000 EPS. As a group, equities research analysts anticipate that SLM will post 3.07 earnings per share for the current fiscal year.

Insider Buying and Selling at SLM

In other news, EVP Kerri A. Palmer sold 55,000 shares of the stock in a transaction dated 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 transaction, the executive vice president directly owned 119,253 shares of the company's stock, valued at $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. 1.30% of the stock is owned by insiders.

Hedge Funds Weigh In On SLM

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

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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