SLM (NASDAQ:SLM) Stock Price Down 8.2% - Here's What Happened

Key Points

• SLM Corporation's stock price dropped by 8.2%, trading as low as $31.03 before closing at $30.27, significantly lower than its previous close of $32.99.
• Analysts have set a consensus target price of $35.00 for SLM, with nine analysts recommending a buy rating and recent upgrades pushing price targets as high as $43.00.
• The company is offering a quarterly dividend of $0.13, representing an annual yield of 1.7%, with a dividend payout ratio of 26.13%.

Shares of SLM Corporation (NASDAQ:SLM - Get Free Report) dropped 8.2% on Friday . The stock traded as low as $31.03 and last traded at $30.27. Approximately 782,006 shares changed hands during mid-day trading, a decline of 69% from the average daily volume of 2,544,365 shares. The stock had previously closed at $32.99.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. Royal Bank Of Canada reiterated an "outperform" rating on shares of SLM in a research note on Monday, July 14th. Morgan Stanley reiterated an "overweight" rating and set a $40.00 price objective (up from $33.00) on shares of SLM in a research note on Wednesday, May 21st. Jefferies Financial Group increased their price objective on shares of SLM from $33.00 to $40.00 and gave the company a "buy" rating in a research note on Wednesday, July 23rd. JPMorgan Chase & Co. raised shares of SLM from a "neutral" rating to an "overweight" rating and increased their price target for the stock from $29.00 to $38.00 in a research report on Friday, July 11th. Finally, Barclays increased their price target on shares of SLM from $38.00 to $43.00 and gave the stock an "overweight" rating in a research report on Friday, July 25th. One analyst has rated the stock with a hold rating and nine have issued a buy rating to the company's stock. Based on data from MarketBeat, SLM currently has a consensus rating of "Moderate Buy" and a consensus target price of $35.00.

SLM Stock Down 8.8%

The company has a debt-to-equity ratio of 3.02, a current ratio of 1.35 and a quick ratio of 1.35. The stock's fifty day simple moving average is $32.47 and its 200-day simple moving average is $30.74. The stock has a market cap of $6.27 billion, a P/E ratio of 15.13, a PEG ratio of 0.93 and a beta of 1.13.

SLM (NASDAQ:SLM - Get Free Report) last posted its earnings results 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). The company had revenue of $403.60 million during the quarter, compared to the consensus estimate of $370.26 million. SLM had a net margin of 15.46% and a return on equity of 21.93%. The business's quarterly revenue was down 21.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.11 earnings per share. On average, research analysts anticipate that SLM Corporation will post 3.07 earnings per share for the current year.

SLM Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Thursday, September 4th will be given a $0.13 dividend. The ex-dividend date is Thursday, September 4th. This represents a $0.52 annualized dividend and a yield of 1.7%. SLM's dividend payout ratio (DPR) is currently 26.13%.

Insiders Place Their Bets

In other 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 transaction of $1,771,550.00. Following the sale, 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 transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 1.30% of the stock is currently owned by corporate insiders.

Institutional Trading of SLM

Several hedge funds have recently added to or reduced their stakes in SLM. J.Safra Asset Management Corp bought a new stake in shares of SLM during the first quarter valued at about $25,000. City Holding Co. bought a new stake in shares of SLM during the second quarter valued at about $25,000. BI Asset Management Fondsmaeglerselskab A S bought a new stake in shares of SLM during the first quarter valued at about $45,000. Fifth Third Bancorp raised its position in shares of SLM by 37.7% during the 1st 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. raised its position in shares of SLM by 355.4% during the 1st 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. Institutional investors own 98.94% of the company's stock.

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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