SLM (NASDAQ:SLM) Shares Gap Up on Strong Earnings

SLM Corporation (NASDAQ:SLM) shares gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $26.70, but opened at $29.32. SLM shares last traded at $28.2210, with a volume of 1,230,658 shares trading hands.

The credit services provider reported $1.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.95 by $0.17. The firm had revenue of $656.82 million for the quarter, compared to analyst estimates of $383.43 million. SLM had a net margin of 26.04% and a return on equity of 35.11%. During the same period in the previous year, the firm earned $0.50 EPS. SLM has set its FY 2026 guidance at 2.700-2.800 EPS.

SLM Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Investors of record on Thursday, March 5th will be given a dividend of $0.13 per share. The ex-dividend date of this dividend is Thursday, March 5th. This represents a $0.52 dividend on an annualized basis and a dividend yield of 1.9%. SLM’s dividend payout ratio (DPR) is presently 18.25%.

Key Stories Impacting SLM

Here are the key news stories impacting SLM this week:

• Positive Sentiment: Q4 results beat expectations — EPS of $1.12 vs. $0.95 consensus and revenue well above estimates; profitability metrics (net margin, ROE) improved, supporting the rally. Sallie Mae Reports Fourth Quarter and Full-Year 2025 Financial Results
• Positive Sentiment: Management set 2026 origination growth target of ~12–14% and launched a new $500M share‑repurchase program, signaling confidence in cash generation and potential EPS support. SLM outlines 12%-14% origination growth for 2026 while launching new $500M share repurchase program
• Positive Sentiment: Quarterly dividend declared ($0.13 per share; record March 5), adding modest income support and reflecting cash return policy. Dividend Declaration
• Neutral Sentiment: Management commentary and analyst deep dives highlight strategic partnerships and regulatory items that shape 2026 growth — useful context but not an immediate price driver by itself. SLM Q4 Deep Dive: Strategic Partnerships and Regulatory Changes Shape 2026 Outlook
• Negative Sentiment: FY‑2026 EPS guidance of $2.70–2.80 came in slightly below the published consensus (~$2.84), which could cap near‑term upside despite the quarter’s beat. Earnings Presentation / Guidance
• Negative Sentiment: Multiple law firms have filed or solicited lead‑plaintiff candidates in securities‑fraud class actions (class period July 25–Aug 14, 2025) with a Feb. 17, 2026 lead‑plaintiff deadline — ongoing litigation risk that can increase legal costs and add headline volatility. SLM Shareholders Opportunity to Lead Securities Fraud Lawsuit

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the company. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $40.00 price objective on shares of SLM in a research note on Friday. Royal Bank Of Canada lifted their target price on SLM from $31.00 to $32.00 and gave the company an “outperform” rating in a research report on Friday, October 24th. Weiss Ratings upgraded shares of SLM from a “hold (c)” rating to a “buy (b-)” rating in a research note on Saturday, October 25th. JPMorgan Chase & Co. reissued an “underweight” rating and set a $25.00 price target (down previously from $29.00) on shares of SLM in a research report on Monday, January 12th. Finally, Wall Street Zen upgraded shares of SLM from a “sell” rating to a “hold” rating in a report on Saturday, October 25th. Seven equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, SLM has an average rating of “Hold” and an average price target of $31.70.

Institutional Trading of SLM

Several hedge funds have recently added to or reduced their stakes in SLM. Goldman Sachs Group Inc. lifted its stake in SLM by 33.4% in the first quarter. Goldman Sachs Group Inc. now owns 547,724 shares of the credit services provider’s stock worth $16,087,000 after acquiring an additional 137,285 shares during the last quarter. SG Americas Securities LLC lifted its position in shares of SLM by 139.5% during the 4th quarter. SG Americas Securities LLC now owns 160,272 shares of the credit services provider’s stock worth $4,337,000 after purchasing an additional 93,364 shares during the last quarter. Entropy Technologies LP lifted its position in shares of SLM by 616.6% during the 3rd quarter. Entropy Technologies LP now owns 109,485 shares of the credit services provider’s stock worth $3,031,000 after purchasing an additional 94,207 shares during the last quarter. Amalgamated Bank grew its stake in shares of SLM by 0.3% during the second quarter. Amalgamated Bank now owns 96,570 shares of the credit services provider’s stock worth $3,167,000 after purchasing an additional 326 shares in the last quarter. Finally, MorganRosel Wealth Management LLC acquired a new position in shares of SLM during the third quarter worth $1,131,000. Institutional investors and hedge funds own 98.94% of the company’s stock.

SLM Stock Up 3.4%

The company has a quick ratio of 1.37, a current ratio of 1.37 and a debt-to-equity ratio of 3.27. The stock has a market cap of $5.61 billion, a PE ratio of 7.96, a price-to-earnings-growth ratio of 1.19 and a beta of 1.12. The firm has a fifty day moving average of $27.71 and a 200 day moving average of $28.94.

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.