SLM (NASDAQ:SLM) Shares Gap Up - Should You Buy?

Key Points

• SLM Corporation's stock gapped up significantly, opening at $29.81 after a previous close of $26.73, indicating strong market interest with a trading volume of 1,770,781 shares.
• Analyst ratings show mixed sentiments, with Wells Fargo reducing its target price from $38.00 to $33.00, while others like Wall Street Zen downgraded the rating to "sell".
• SLM announced a quarterly dividend of $0.13 per share, representing a 1.9% annual yield, with payment set for December 15th.

SLM Corporation (NASDAQ:SLM - Get Free Report) gapped up before the market opened on Friday . The stock had previously closed at $26.73, but opened at $29.81. SLM shares last traded at $28.05, with a volume of 1,770,781 shares.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on SLM. Wells Fargo & Company lowered their target price on SLM from $38.00 to $33.00 and set an "overweight" rating on the stock in a research note on Friday. Wall Street Zen lowered SLM from a "hold" rating to a "sell" rating in a report on Saturday, October 11th. JPMorgan Chase & Co. reissued a "neutral" rating and issued a $29.00 price objective (down previously from $38.00) on shares of SLM in a report on Tuesday, October 7th. Barclays decreased their price objective on SLM from $43.00 to $35.00 and set an "overweight" rating for the company in a report on Monday, October 6th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of SLM in a report on Wednesday, October 8th. Six equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $32.63.

SLM Stock Up 4.6%

The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 3.02. The firm has a market cap of $5.83 billion, a PE ratio of 14.03, a price-to-earnings-growth ratio of 0.77 and a beta of 1.11. The stock has a fifty day simple moving average of $28.65 and a two-hundred day simple moving average of $30.46.

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

SLM Dividend Announcement

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

Insider Activity at SLM

In other news, EVP Kerri A. Palmer sold 55,000 shares of the business's stock in a transaction dated 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 transaction, the executive vice president owned 119,253 shares of the company's stock, valued at approximately $3,841,139.13. The trade was 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 the SEC website. Insiders own 1.30% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of SLM. GAMMA Investing LLC grew its holdings in shares of SLM by 19.2% during the first quarter. GAMMA Investing LLC now owns 8,034 shares of the credit services provider's stock worth $236,000 after purchasing an additional 1,294 shares in the last quarter. Wealth Enhancement Advisory Services LLC grew its holdings in shares of SLM by 2.0% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 35,415 shares of the credit services provider's stock worth $1,040,000 after purchasing an additional 706 shares in the last quarter. State of Alaska Department of Revenue grew its holdings in shares of SLM by 1.8% during the first quarter. State of Alaska Department of Revenue now owns 24,657 shares of the credit services provider's stock worth $724,000 after purchasing an additional 440 shares in the last quarter. Oppenheimer & Co. Inc. purchased a new position in shares of SLM during the first quarter worth about $216,000. Finally, Perpetual Ltd grew its holdings in shares of SLM by 172.7% during the first quarter. Perpetual Ltd now owns 641,554 shares of the credit services provider's stock worth $18,842,000 after purchasing an additional 406,313 shares in the last quarter. Hedge funds and other institutional investors own 98.94% of the company's stock.

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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