SLM (NASDAQ:SLM) Sets New 12-Month High Following Dividend Announcement

SLM Co. (NASDAQ:SLM) shares hit a new 52-week high on Tuesday following a dividend announcement from the company. The company traded as high as $21.97 and last traded at $21.95, with a volume of 566427 shares. The stock had previously closed at $21.32.

The newly announced dividend which will be paid on Monday, June 17th. Stockholders of record on Thursday, June 6th will be issued a dividend of $0.11 per share. This represents a $0.44 dividend on an annualized basis and a dividend yield of 2.01%. SLM’s payout ratio is 18.33%.

Wall Street Analyst Weigh In

SLM has been the subject of a number of research analyst reports. JPMorgan Chase & Co. upped their price objective on SLM from $20.00 to $22.00 and gave the stock a “neutral” rating in a report on Wednesday, April 3rd. TheStreet upgraded SLM from a “c+” rating to a “b” rating in a report on Wednesday, January 24th. Wells Fargo & Company increased their price target on SLM from $22.00 to $24.00 and gave the company an “overweight” rating in a report on Thursday, April 18th. Deutsche Bank Aktiengesellschaft began coverage on SLM in a report on Wednesday, January 10th. They issued a “buy” rating and a $25.00 price target for the company. Finally, Royal Bank of Canada increased their price target on SLM from $21.00 to $22.00 and gave the company an “outperform” rating in a report on Thursday, January 25th. Three analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. Based on data from MarketBeat, SLM has an average rating of “Moderate Buy” and a consensus target price of $20.32.

SLM Stock Up 2.9 %

The firm has a 50 day moving average price of $20.84 and a two-hundred day moving average price of $18.12. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 3.21. The company has a market capitalization of $4.83 billion, a price-to-earnings ratio of 9.14, a P/E/G ratio of 0.43 and a beta of 1.16.

SLM (NASDAQ:SLM) last announced its earnings results on Tuesday, January 30th. The credit services provider reported $0.72 earnings per share for the quarter, missing the consensus estimate of $0.87 by ($0.15). The business had revenue of $725.66 million for the quarter, compared to analyst estimates of $379.20 million. SLM had a net margin of 20.65% and a return on equity of 36.86%. During the same quarter in the prior year, the business earned ($0.33) earnings per share. As a group, sell-side analysts expect that SLM Co. will post 2.72 earnings per share for the current year.

SLM announced that its Board of Directors has authorized a stock repurchase plan on Wednesday, January 24th that allows the company to buyback $650.00 million in shares. This buyback authorization allows the credit services provider to purchase up to 14.5% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Insider Transactions at SLM

In other news, EVP Donna F. Vieira sold 12,308 shares of the stock in a transaction dated Tuesday, January 30th. The shares were sold at an average price of $20.27, for a total transaction of $249,483.16. Following the transaction, the executive vice president now owns 126,500 shares of the company’s stock, valued at $2,564,155. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In other SLM news, EVP Donna F. Vieira sold 12,308 shares of the firm’s stock in a transaction dated Tuesday, January 30th. The shares were sold at an average price of $20.27, for a total value of $249,483.16. Following the transaction, the executive vice president now owns 126,500 shares of the company’s stock, valued at $2,564,155. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Jonathan Boyles sold 94,078 shares of the firm’s stock in a transaction dated Thursday, February 29th. The stock was sold at an average price of $20.72, for a total transaction of $1,949,296.16. Following the completion of the transaction, the senior vice president now directly owns 52,751 shares in the company, valued at approximately $1,093,000.72. The disclosure for this sale can be found here. Corporate insiders own 0.91% of the company’s stock.

Institutional Investors Weigh In On SLM

Several large investors have recently made changes to their positions in SLM. CWM LLC increased its stake in shares of SLM by 51.9% in the third quarter. CWM LLC now owns 5,632 shares of the credit services provider’s stock valued at $77,000 after purchasing an additional 1,925 shares during the period. SG Americas Securities LLC increased its stake in shares of SLM by 63.1% during the third quarter. SG Americas Securities LLC now owns 228,743 shares of the credit services provider’s stock valued at $3,115,000 after acquiring an additional 88,519 shares during the period. Oak Thistle LLC increased its stake in shares of SLM by 54.5% during the third quarter. Oak Thistle LLC now owns 33,187 shares of the credit services provider’s stock valued at $452,000 after acquiring an additional 11,706 shares during the period. Arnhold LLC increased its stake in shares of SLM by 5.7% during the third quarter. Arnhold LLC now owns 1,662,736 shares of the credit services provider’s stock valued at $22,646,000 after acquiring an additional 89,315 shares during the period. Finally, Mackenzie Financial Corp acquired a new position in shares of SLM during the third quarter valued at approximately $310,000. Institutional investors and hedge funds own 98.94% of the company’s stock.

About SLM

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.