Investors Purchase High Volume of Put Options on SLM (NASDAQ:SLM)

Key Points

• SLM Corporation experienced a 141% increase in daily put option trading, with 2,505 options acquired, signaling heightened investor interest or concern.
• The company reported earnings per share of $0.32, falling short of analysts' estimates of $0.49, despite a revenue increase compared to the previous year.
• SLM recently declared a $0.13 quarterly dividend, resulting in an annualized yield of 1.8% and a payout ratio of 26.13%.

SLM Corporation (NASDAQ:SLM - Get Free Report) was the target of unusually large options trading on Wednesday. Investors purchased 2,505 put options on the stock. This is an increase of 141% compared to the typical volume of 1,041 put options.

Analyst Ratings Changes

A number of analysts have commented on SLM shares. JPMorgan Chase & Co. raised shares of SLM from a "neutral" rating to an "overweight" rating and upped their price target for the company from $29.00 to $38.00 in a research report on Friday, July 11th. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of SLM in a research report on Monday, July 14th. Morgan Stanley reaffirmed an "overweight" rating and set a $40.00 price target (up previously from $33.00) on shares of SLM in a research report on Wednesday, May 21st. Barclays upped their price target on shares of SLM from $38.00 to $43.00 and gave the company an "overweight" rating in a research report on Friday, July 25th. Finally, Wells Fargo & Company initiated coverage on shares of SLM in a research report on Monday, August 25th. They set an "overweight" rating and a $38.00 price objective on the stock. Nine equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, SLM presently has an average rating of "Moderate Buy" and an average price target of $35.00.

SLM Stock Up 1.2%

NASDAQ:SLM traded up $0.33 on Thursday, hitting $28.45. The stock had a trading volume of 3,043,001 shares, compared to its average volume of 2,423,514. The company has a debt-to-equity ratio of 3.02, a quick ratio of 1.35 and a current ratio of 1.35. The stock has a market cap of $5.93 billion, a P/E ratio of 14.30, a price-to-earnings-growth ratio of 0.80 and a beta of 1.11. SLM has a 1 year low of $21.10 and a 1 year high of $34.97. The firm's fifty day simple moving average is $31.35 and its two-hundred day simple moving average is $30.79.

SLM (NASDAQ:SLM - Get Free Report) last issued its quarterly earnings results on Thursday, July 24th. The credit services provider reported $0.32 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.49 by ($0.17). SLM had a return on equity of 21.93% and a net margin of 15.46%.The company had revenue of $403.60 million for the quarter, compared to analysts' expectations of $370.26 million. During the same quarter in the previous year, the business earned $1.11 EPS. The company's revenue for the quarter was down 21.4% on a year-over-year basis. SLM has set its FY 2025 guidance at 3.000-3.100 EPS. Analysts predict that SLM will post 3.07 earnings per share for the current year.

SLM Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 15th. Investors of record on Thursday, September 4th were paid a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date was Thursday, September 4th. SLM's payout ratio is currently 26.13%.

Insider Transactions at SLM

In related news, EVP Kerri A. Palmer sold 55,000 shares of the firm's stock in a transaction 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 completion of the transaction, the executive vice president directly owned 119,253 shares of the company's stock, valued at $3,841,139.13. This trade represents a 31.56% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 1.30% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. City Holding Co. bought a new stake in shares of SLM during the 2nd quarter worth $25,000. J.Safra Asset Management Corp bought a new stake in shares of SLM during the 1st quarter worth $25,000. BI Asset Management Fondsmaeglerselskab A S bought a new stake in shares of SLM during the 1st quarter worth $45,000. Fifth Third Bancorp lifted its holdings 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 acquiring an additional 469 shares during the last quarter. Finally, UMB Bank n.a. lifted its holdings 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 acquiring an additional 1,482 shares during the last quarter. 98.94% of the stock is owned by institutional investors.

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.