SLM (NASDAQ:SLM) Releases Earnings Results, Misses Expectations By $0.35 EPS

SLM (NASDAQ:SLMGet Rating) posted its quarterly earnings data on Wednesday. The credit services provider reported $0.46 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.81 by ($0.35), MarketWatch Earnings reports. SLM had a net margin of 48.17% and a return on equity of 57.49%. The business had revenue of $375.03 million for the quarter, compared to the consensus estimate of $375.59 million. During the same quarter last year, the business posted $1.77 EPS. The business’s revenue for the quarter was up 13.3% on a year-over-year basis. SLM updated its FY22 guidance to $2.80-3.00 EPS.

NASDAQ:SLM opened at $16.34 on Thursday. SLM has a 12-month low of $16.28 and a 12-month high of $21.40. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 3.12. The firm has a market capitalization of $4.57 billion, a PE ratio of 4.71 and a beta of 1.23. The firm has a 50-day moving average price of $17.93 and a 200 day moving average price of $18.49.

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, June 15th. Investors of record on Friday, June 3rd will be given a $0.11 dividend. This represents a $0.44 annualized dividend and a yield of 2.69%. The ex-dividend date of this dividend is Thursday, June 2nd. SLM’s dividend payout ratio (DPR) is presently 12.68%.

SLM declared that its board has initiated a stock buyback program on Wednesday, January 26th that allows the company to repurchase $1.25 billion in shares. This repurchase authorization allows the credit services provider to buy up to 24.9% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s leadership believes its stock is undervalued.

In other news, SVP Jonathan Boyles sold 6,140 shares of the stock in a transaction that occurred on Friday, March 4th. The shares were sold at an average price of $17.43, for a total transaction of $107,020.20. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CFO Steven Mcgarry sold 22,834 shares of the company’s stock in a transaction dated Friday, February 25th. The shares were sold at an average price of $19.89, for a total value of $454,168.26. The disclosure for this sale can be found here. Insiders sold 43,990 shares of company stock valued at $857,754 in the last three months. Company insiders own 0.51% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. LPL Financial LLC bought a new position in shares of SLM during the third quarter worth about $193,000. Forum Financial Management LP bought a new position in shares of SLM in the fourth quarter worth about $216,000. JustInvest LLC acquired a new stake in SLM during the 4th quarter worth approximately $316,000. William Blair Investment Management LLC boosted its position in SLM by 20.7% during the 4th quarter. William Blair Investment Management LLC now owns 28,719 shares of the credit services provider’s stock worth $565,000 after buying an additional 4,918 shares during the period. Finally, Metropolitan Life Insurance Co NY lifted its position in shares of SLM by 5.4% in the 4th quarter. Metropolitan Life Insurance Co NY now owns 52,437 shares of the credit services provider’s stock worth $1,031,000 after purchasing an additional 2,685 shares during the period. Institutional investors and hedge funds own 96.46% of the company’s stock.

SLM has been the subject of several research reports. StockNews.com initiated coverage on shares of SLM in a research report on Thursday, March 31st. They set a “hold” rating for the company. Barclays upped their price objective on shares of SLM from $25.00 to $27.00 in a research note on Monday, January 10th. Jefferies Financial Group reaffirmed a “buy” rating and set a $24.00 price objective on shares of SLM in a research note on Thursday, December 30th. Wedbush reaffirmed an “outperform” rating on shares of SLM in a research note on Monday, January 31st. Finally, Stephens cut shares of SLM from an “overweight” rating to an “equal weight” rating and decreased their price objective for the stock from $24.00 to $19.00 in a report on Monday, April 18th. Two equities research analysts have rated the stock with a hold rating, four have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, SLM has a consensus rating of “Buy” and an average price target of $23.25.

SLM Company Profile (Get Rating)

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 also offers retail deposit accounts, including certificates of deposit, money market deposit accounts, and high-yield savings accounts; and omnibus accounts, as well as credit card loans.

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Earnings History for SLM (NASDAQ:SLM)

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