SLM (NASDAQ:SLM) Releases Earnings Results

SLM (NASDAQ:SLM) posted its earnings results on Thursday. The credit services provider reported $1.54 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.84 by $0.70, FiscalAI reports. SLM had a net margin of 26.04% and a return on equity of 34.79%. The business had revenue of $1.30 billion for the quarter, compared to analyst estimates of $486.05 million.

SLM Price Performance

Shares of NASDAQ SLM traded up $0.32 during mid-day trading on Thursday, reaching $23.42. The company’s stock had a trading volume of 8,226,164 shares, compared to its average volume of 3,773,540. The stock has a 50-day moving average of $21.20 and a two-hundred day moving average of $25.19. The stock has a market capitalization of $4.64 billion, a P/E ratio of 6.75, a P/E/G ratio of 2.67 and a beta of 1.04. The company has a debt-to-equity ratio of 2.44, a quick ratio of 1.24 and a current ratio of 1.28. SLM has a 1-year low of $17.77 and a 1-year high of $34.97.

SLM Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Thursday, June 4th will be issued a $0.13 dividend. The ex-dividend date is Thursday, June 4th. This represents a $0.52 dividend on an annualized basis and a yield of 2.2%. SLM’s dividend payout ratio (DPR) is presently 14.99%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Goldman Sachs Group Inc. boosted its stake in SLM by 33.4% during the first quarter. Goldman Sachs Group Inc. now owns 547,724 shares of the credit services provider’s stock worth $16,087,000 after buying an additional 137,285 shares during the last quarter. Entropy Technologies LP grew its holdings in shares of SLM by 616.6% in the third quarter. Entropy Technologies LP now owns 109,485 shares of the credit services provider’s stock valued at $3,031,000 after purchasing an additional 94,207 shares during the period. Captrust Financial Advisors increased its position in SLM by 31.3% during the fourth quarter. Captrust Financial Advisors now owns 53,673 shares of the credit services provider’s stock worth $1,452,000 after purchasing an additional 12,793 shares during the last quarter. Dynamic Technology Lab Private Ltd purchased a new position in SLM during the first quarter worth about $263,000. Finally, Triumph Capital Management acquired a new position in SLM in the 3rd quarter valued at about $69,000. 98.94% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several analysts have commented on SLM shares. Royal Bank Of Canada set a $28.00 price objective on SLM in a report on Friday, April 10th. Wells Fargo & Company reduced their target price on SLM from $32.00 to $29.00 and set an “overweight” rating for the company in a research note on Thursday, April 9th. Morgan Stanley decreased their target price on SLM from $29.00 to $26.00 and set an “equal weight” rating on the stock in a research report on Thursday, April 16th. Zacks Research raised shares of SLM from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. Finally, Compass Point upgraded shares of SLM from a “sell” rating to a “neutral” rating and reduced their price objective for the stock from $23.00 to $22.00 in a research report on Monday, March 30th. Six equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, SLM presently has a consensus rating of “Hold” and a consensus target price of $29.40.

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.