SLM (NASDAQ:SLM) Shares Gap Down Following Weak Earnings

SLM Corporation (NASDAQ:SLM) shares gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $24.18, but opened at $23.00. SLM shares last traded at $23.7240, with a volume of 676,718 shares.

The credit services provider reported $0.29 EPS for the quarter, missing the consensus estimate of $0.46 by ($0.17). The business had revenue of $401.11 million during the quarter, compared to analyst estimates of $409.22 million. SLM had a return on equity of 34.07% and a net margin of 26.09%.The firm’s revenue was down .7% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.32 earnings per share. SLM has set its FY 2026 guidance at 3.100-3.200 EPS.

SLM Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Friday, September 4th will be issued a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend is Friday, September 4th. SLM’s payout ratio is currently 14.53%.

Key Stories Impacting SLM

Here are the key news stories impacting SLM this week:

• Positive Sentiment: SLM reaffirmed/issued FY 2026 EPS guidance of 3.10 to 3.20, which is roughly in line with consensus and may help limit downside if investors focus on the full-year outlook rather than the quarter. Sallie Mae Reports Second Quarter 2026 Financial Results
• Positive Sentiment: The company also highlighted loan origination growth, showing the underlying lending franchise is still expanding even as earnings were weak. Sallie Mae Q2 Earnings Miss Estimates, NII Dips, Expenses Rise Y/Y
• Neutral Sentiment: Investor focus remains split between the “student loan reform” narrative and valuation arguments, which may be supporting some longer-term interest in the stock despite the weak quarter. SLM (SLM) Heads Into Earnings On Student Loan Reform Narrative and Undervalued Debate
• Negative Sentiment: SLM reported Q2 EPS of $0.29 versus estimates of $0.46, while revenue of $401.1 million also missed expectations, reinforcing concerns about near-term earnings momentum. SLM earnings report and conference call
• Negative Sentiment: Management cited lower net interest income, rising expenses, and margin pressure, all of which weigh on profitability and help explain why the stock is moving lower. Sallie Mae (SLM) Misses Q2 Earnings and Revenue Estimates

Analyst Ratings Changes

SLM has been the subject of a number of recent research reports. Royal Bank Of Canada boosted their target price on SLM from $28.00 to $29.00 and gave the stock an “outperform” rating in a research report on Friday, July 10th. Weiss Ratings raised SLM from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, June 18th. Wall Street Zen downgraded shares of SLM from a “hold” rating to a “sell” rating in a research report on Saturday. Barclays reaffirmed an “equal weight” rating and issued a $26.00 target price (down from $30.00) on shares of SLM in a research note on Tuesday, July 7th. Finally, JPMorgan Chase & Co. lifted their price target on shares of SLM from $24.00 to $25.00 and gave the stock an “underweight” rating in a research report on Monday, July 13th. Five analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $29.80.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Goldman Sachs Group Inc. grew its holdings 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 valued at $16,087,000 after purchasing an additional 137,285 shares during the period. SG Americas Securities LLC raised its holdings in SLM by 63.1% in the first quarter. SG Americas Securities LLC now owns 261,392 shares of the credit services provider’s stock worth $5,596,000 after purchasing an additional 101,120 shares during the period. Entropy Technologies LP raised its holdings in SLM by 616.6% in the third 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 period. Handelsbanken Fonder AB boosted its position in shares of SLM by 16.1% during the second quarter. Handelsbanken Fonder AB now owns 56,179 shares of the credit services provider’s stock worth $1,457,000 after purchasing an additional 7,800 shares in the last quarter. Finally, Captrust Financial Advisors boosted its position in shares of 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 in the last quarter. Institutional investors own 98.94% of the company’s stock.

SLM Trading Up 0.5%

The company has a market capitalization of $4.58 billion, a P/E ratio of 6.78, a PEG ratio of 2.21 and a beta of 0.94. The company has a debt-to-equity ratio of 2.59, a current ratio of 1.30 and a quick ratio of 1.29. The business’s 50-day moving average price is $23.57 and its two-hundred day moving average price is $23.32.

About SLM

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.