SLM Co. (NASDAQ:SLM) Given Consensus Rating of “Buy” by Brokerages

Shares of SLM Co. (NASDAQ:SLMGet Rating) have been given a consensus rating of “Buy” by the nine ratings firms that are presently covering the stock, MarketBeat Ratings reports. Two investment analysts have rated the stock with a hold recommendation, four have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year target price among analysts that have updated their coverage on the stock in the last year is $22.93.

A number of analysts have recently issued reports on SLM shares. Barclays increased their price target on shares of SLM from $25.00 to $27.00 in a research report on Monday, January 10th. Wedbush reissued an “outperform” rating on shares of SLM in a research note on Monday, January 31st. StockNews.com began coverage on shares of SLM in a research note on Thursday, March 31st. They issued a “hold” rating on the stock. Citigroup reduced their price objective on SLM from $26.00 to $21.00 in a research report on Monday. Finally, Stephens downgraded SLM from an “overweight” rating to an “equal weight” rating and cut their price target for the stock from $24.00 to $19.00 in a research note on Monday, April 18th.

Shares of NASDAQ:SLM opened at $16.73 on Monday. The company’s fifty day moving average is $17.81 and its two-hundred day moving average is $18.49. The company has a market cap of $4.67 billion, a P/E ratio of 7.71 and a beta of 1.23. SLM has a 12-month low of $16.07 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.

SLM (NASDAQ:SLMGet Rating) last posted its quarterly earnings results on Wednesday, April 27th. The credit services provider reported $0.46 earnings per share for the quarter, missing the consensus estimate of $0.81 by ($0.35). SLM had a net margin of 31.67% and a return on equity of 33.71%. The business had revenue of $375.03 million for the quarter, compared to analyst estimates of $375.59 million. During the same period in the previous year, the firm posted $1.77 earnings per share. The firm’s quarterly revenue was up 13.3% on a year-over-year basis. Equities research analysts anticipate that SLM will post 2.91 earnings per share for the current year.

The business also recently announced a quarterly dividend, which will be paid on Wednesday, June 15th. Shareholders of record on Friday, June 3rd will be issued a dividend of $0.11 per share. The ex-dividend date of this dividend is Thursday, June 2nd. This represents a $0.44 annualized dividend and a yield of 2.63%. SLM’s dividend payout ratio (DPR) is currently 20.28%.

SLM announced that its board has initiated a stock repurchase program on Wednesday, January 26th that authorizes the company to buyback $1.25 billion in shares. This buyback authorization authorizes the credit services provider to buy up to 24.9% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board believes its stock is undervalued.

In related news, CFO Steven Mcgarry sold 15,016 shares of SLM stock in a transaction on Monday, February 28th. The shares were sold at an average price of $19.75, for a total value of $296,566.00. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, SVP Jonathan Boyles sold 6,140 shares of the company’s stock in a transaction dated Friday, March 4th. The shares were sold at an average price of $17.43, for a total transaction of $107,020.20. The disclosure for this sale can be found here. In the last three months, insiders have sold 43,990 shares of company stock worth $857,754. 0.51% of the stock is currently owned by insiders.

Several hedge funds have recently modified their holdings of SLM. Norges Bank bought a new position in shares of SLM during the 4th quarter worth about $54,917,000. Massachusetts Financial Services Co. MA raised its holdings in SLM by 13.0% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 17,587,780 shares of the credit services provider’s stock valued at $345,952,000 after acquiring an additional 2,021,850 shares in the last quarter. Wedge Capital Management L L P NC lifted its position in shares of SLM by 221.0% in the 1st quarter. Wedge Capital Management L L P NC now owns 2,550,985 shares of the credit services provider’s stock worth $46,836,000 after acquiring an additional 1,756,241 shares during the period. Impactive Capital LP grew its holdings in shares of SLM by 16.5% during the 3rd quarter. Impactive Capital LP now owns 9,957,608 shares of the credit services provider’s stock worth $175,254,000 after purchasing an additional 1,406,738 shares in the last quarter. Finally, Capital World Investors increased its position in shares of SLM by 87.4% during the third quarter. Capital World Investors now owns 2,960,000 shares of the credit services provider’s stock valued at $52,096,000 after purchasing an additional 1,380,400 shares during the period. Institutional investors own 92.97% of the company’s stock.

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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Analyst Recommendations for SLM (NASDAQ:SLM)

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