SLM (NASDAQ:SLM) Stock Crosses Below 50 Day Moving Average - Here's Why

Key Points

• SLM Corporation's stock fell below its 50-day moving average, trading at $28.08 with a significant volume of over 3 million shares exchanged.
• Wall Street analysts maintain a positive outlook for SLM, with an average rating of "Moderate Buy" and a target price of $35.89 after several upgrades by major firms.
• In its latest earnings report, SLM missed EPS estimates at $0.32 while reporting a revenue of $403.6 million, down 21.4% year-over-year.

SLM Corporation (NASDAQ:SLM - Get Free Report) crossed below its 50-day moving average during trading on Thursday . The stock has a 50-day moving average of $30.87 and traded as low as $27.94. SLM shares last traded at $28.08, with a volume of 3,011,554 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the company. Barclays raised their price objective on SLM from $38.00 to $43.00 and gave the company an "overweight" rating in a report on Friday, July 25th. Royal Bank Of Canada reiterated an "outperform" rating on shares of SLM in a report on Monday, July 14th. Wells Fargo & Company started coverage on SLM in a report on Monday, August 25th. They set an "overweight" rating and a $38.00 price target for the company. JPMorgan Chase & Co. upgraded SLM from a "neutral" rating to an "overweight" rating and lifted their price target for the stock from $29.00 to $38.00 in a report on Friday, July 11th. Finally, Jefferies Financial Group lifted their price target on SLM from $33.00 to $40.00 and gave the stock a "buy" rating in a report on Wednesday, July 23rd. Eight equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $35.89.

SLM Trading Down 1.3%

The company has a market cap of $5.85 billion, a P/E ratio of 14.11, a PEG ratio of 0.81 and a beta of 1.11. The business has a fifty day moving average price of $30.87 and a 200-day moving average price of $30.76. 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 issued its quarterly earnings data on Thursday, July 24th. The credit services provider reported $0.32 earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 the consensus estimate of $370.26 million. During the same quarter in the prior year, the firm earned $1.11 EPS. The company's revenue was down 21.4% on a year-over-year basis. SLM has set its FY 2025 guidance at 3.000-3.100 EPS. On average, analysts forecast that SLM Corporation will post 3.07 earnings per share for the current year.

SLM Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Thursday, September 4th were issued a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date was Thursday, September 4th. SLM's payout ratio is currently 26.13%.

Insider Buying and Selling at SLM

In other news, EVP Kerri A. Palmer sold 55,000 shares of SLM stock in a transaction that occurred 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 sale, the executive vice president directly owned 119,253 shares in the company, valued at approximately $3,841,139.13. The trade was a 31.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 1.30% of the company's stock.

Institutional Investors Weigh In On SLM

A number of hedge funds and other institutional investors have recently made changes to their positions in SLM. Brave Warrior Advisors LLC acquired a new stake in shares of SLM in the first quarter valued at approximately $277,704,000. Millennium Management LLC raised its position in shares of SLM by 378.4% in the first quarter. Millennium Management LLC now owns 2,633,072 shares of the credit services provider's stock valued at $77,333,000 after buying an additional 2,082,687 shares in the last quarter. M.D. Sass LLC acquired a new stake in shares of SLM in the first quarter valued at approximately $37,317,000. Wellington Management Group LLP raised its position in shares of SLM by 470.6% in the fourth quarter. Wellington Management Group LLP now owns 1,126,756 shares of the credit services provider's stock valued at $31,076,000 after buying an additional 929,292 shares in the last quarter. Finally, Bank of New York Mellon Corp raised its position in shares of SLM by 22.9% in the first quarter. Bank of New York Mellon Corp now owns 2,981,771 shares of the credit services provider's stock valued at $87,575,000 after buying an additional 554,931 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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