Wall Street Zen Downgrades SLM (NASDAQ:SLM) to Sell

Key Points

• Wall Street Zen downgraded SLM from “hold” to “sell,” adding to a mixed analyst backdrop that still leaves the stock with an overall Hold consensus and an average target price of $29.80.
• SLM’s latest quarterly results disappointed, with EPS of $0.29 versus estimates of $0.46 and revenue of $401.1 million also below expectations. The miss was tied to lower net interest income, rising expenses, and margin pressure.
• Despite the weak quarter, management reaffirmed FY 2026 EPS guidance of $3.10 to $3.20 and pointed to loan origination growth, which may help support the stock’s longer-term story around student loan reform and valuation.

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

SLM has been the topic of several other reports. Compass Point raised shares of SLM from a "sell" rating to a "neutral" rating and dropped their target price for the stock from $23.00 to $22.00 in a research report on Monday, March 30th. Wells Fargo & Company set a $28.00 price target on shares of SLM in a research report on Friday. Zacks Research lowered shares of SLM from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 26th. Weiss Ratings raised shares of SLM from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, June 18th. Finally, Morgan Stanley lifted their price objective on shares of SLM from $27.00 to $28.00 and gave the stock an "equal weight" rating in a research report on Monday. Five investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $29.80.

SLM Trading Up 0.5%

Shares of NASDAQ SLM opened at $24.29 on Friday. The company has a quick ratio of 1.29, a current ratio of 1.30 and a debt-to-equity ratio of 2.59. SLM has a 12 month low of $17.77 and a 12 month high of $33.49. The company has a market cap of $4.58 billion, a price-to-earnings ratio of 6.78, a P/E/G ratio of 2.21 and a beta of 0.94. The business has a fifty day simple moving average of $23.57 and a 200-day simple moving average of $23.32.

SLM (NASDAQ:SLM - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The credit services provider reported $0.29 earnings per share for the quarter, missing analysts' consensus estimates of $0.46 by ($0.17). The company had revenue of $401.11 million during the quarter, compared to analysts' expectations of $409.22 million. SLM had a return on equity of 34.07% and a net margin of 26.09%.The company's revenue for the quarter was down .7% compared to the same quarter last year. During the same period in the prior year, the business posted $0.32 EPS. SLM has set its FY 2026 guidance at 3.100-3.200 EPS. Sell-side analysts predict that SLM will post 3.16 EPS for the current year.

Institutional Trading of SLM

Hedge funds have recently made changes to their positions in the stock. Handelsbanken Fonder AB boosted its holdings in shares of SLM by 16.1% during the second quarter. Handelsbanken Fonder AB now owns 56,179 shares of the credit services provider's stock worth $1,457,000 after purchasing an additional 7,800 shares during the period. GAMMA Investing LLC increased its stake in SLM by 26.4% in the 2nd quarter. GAMMA Investing LLC now owns 11,579 shares of the credit services provider's stock valued at $300,000 after buying an additional 2,417 shares during the period. EverSource Wealth Advisors LLC lifted its position in SLM by 19.4% in the 1st quarter. EverSource Wealth Advisors LLC now owns 3,081 shares of the credit services provider's stock worth $66,000 after buying an additional 501 shares in the last quarter. Entropy Technologies LP lifted its position in SLM by 146.1% in the 1st quarter. Entropy Technologies LP now owns 44,570 shares of the credit services provider's stock worth $954,000 after buying an additional 26,460 shares in the last quarter. Finally, SG Americas Securities LLC boosted its stake in shares of SLM by 63.1% during the 1st quarter. SG Americas Securities LLC now owns 261,392 shares of the credit services provider's stock valued at $5,596,000 after buying an additional 101,120 shares during the period. 98.94% of the stock is owned by hedge funds and other institutional investors.

Key SLM News

Here are the key news stories impacting SLM this week:

• Positive Sentiment: SLM reaffirmed/issued FY 2026 EPS guidance of 3.10 to 3.20, which is roughly in line with consensus and may help limit downside if investors focus on the full-year outlook rather than the quarter. Sallie Mae Reports Second Quarter 2026 Financial Results
• Positive Sentiment: The company also highlighted loan origination growth, showing the underlying lending franchise is still expanding even as earnings were weak. Sallie Mae Q2 Earnings Miss Estimates, NII Dips, Expenses Rise Y/Y
• Neutral Sentiment: Investor focus remains split between the “student loan reform” narrative and valuation arguments, which may be supporting some longer-term interest in the stock despite the weak quarter. SLM (SLM) Heads Into Earnings On Student Loan Reform Narrative and Undervalued Debate
• Negative Sentiment: SLM reported Q2 EPS of $0.29 versus estimates of $0.46, while revenue of $401.1 million also missed expectations, reinforcing concerns about near-term earnings momentum. SLM earnings report and conference call
• Negative Sentiment: Management cited lower net interest income, rising expenses, and margin pressure, all of which weigh on profitability and help explain why the stock is moving lower. Sallie Mae (SLM) Misses Q2 Earnings and Revenue Estimates

SLM Company Profile

SLM Corporation, operating as Sallie Mae Bank, is a leading U.S.-based consumer banking company specializing in education financing and related banking products. The company provides a range of private student loans for undergraduate and graduate studies, Parent PLUS loans, and specialized financing for career and certificate programs. In addition to its core lending services, Sallie Mae offers deposit products including savings accounts, checking accounts, money market accounts, certificates of deposit, and credit cards tailored to students and young adults.

Founded in 1972 as the Student Loan Marketing Association—a government-sponsored enterprise—Sallie Mae was privatized in 2004 and has since focused on expanding its private education loan offerings and digital banking solutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.