SLM (NASDAQ:SLM) Reaches New 1-Year High – Here’s Why

Shares of SLM Co. (NASDAQ:SLM) reached a new 52-week high during trading on Tuesday . The stock traded as high as $33.95 and last traded at $33.85, with a volume of 2003515 shares traded. The stock had previously closed at $33.65.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. Barclays boosted their target price on SLM from $34.00 to $38.00 and gave the stock an “overweight” rating in a research report on Tuesday, February 18th. JPMorgan Chase & Co. cut their target price on SLM from $30.00 to $27.00 and set a “neutral” rating on the stock in a research report on Tuesday, April 8th. Morgan Stanley reissued an “overweight” rating and issued a $40.00 price objective (up previously from $33.00) on shares of SLM in a research note on Wednesday, May 21st. Finally, Wells Fargo & Company increased their price target on SLM from $34.00 to $38.00 and gave the stock an “overweight” rating in a report on Wednesday, May 14th. Two research analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $31.82.

SLM Price Performance

The company has a quick ratio of 1.27, a current ratio of 1.32 and a debt-to-equity ratio of 3.37. The firm has a market capitalization of $7.10 billion, a price-to-earnings ratio of 12.77, a PEG ratio of 0.86 and a beta of 1.05. The stock’s 50-day moving average price is $29.47 and its 200 day moving average price is $28.56.

SLM (NASDAQ:SLM) last posted its quarterly earnings data on Thursday, April 24th. The credit services provider reported $1.40 EPS for the quarter, beating the consensus estimate of $1.19 by $0.21. SLM had a net margin of 20.73% and a return on equity of 31.66%. The business had revenue of $374.97 million during the quarter, compared to analyst estimates of $359.83 million. During the same quarter last year, the firm posted $1.27 earnings per share. The business’s revenue for the quarter was up 3.5% compared to the same quarter last year. Equities research analysts expect that SLM Co. will post 3.07 earnings per share for the current fiscal year.

SLM Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 16th. Shareholders of record on Thursday, June 5th will be issued a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a yield of 1.54%. The ex-dividend date is Thursday, June 5th. SLM’s dividend payout ratio (DPR) is 18.71%.

Insider Transactions at SLM

In related news, Director Robert S. Strong sold 3,000 shares of the company’s stock in a transaction dated Friday, May 2nd. The stock was sold at an average price of $31.15, for a total value of $93,450.00. Following the completion of the sale, the director now directly owns 35,195 shares of the company’s stock, valued at $1,096,324.25. This represents a 7.85% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 1.20% of the company’s stock.

Hedge Funds Weigh In On SLM

A number of hedge funds and other institutional investors have recently made changes to their positions in SLM. J.Safra Asset Management Corp purchased a new stake in shares of SLM during the first quarter worth approximately $25,000. Private Trust Co. NA increased its holdings in shares of SLM by 86.4% in the 4th quarter. Private Trust Co. NA now owns 971 shares of the credit services provider’s stock valued at $27,000 after purchasing an additional 450 shares in the last quarter. BI Asset Management Fondsmaeglerselskab A S acquired a new stake in shares of SLM during the 1st quarter valued at approximately $45,000. Fifth Third Bancorp boosted its stake in shares of SLM by 37.7% during the 1st quarter. Fifth Third Bancorp now owns 1,714 shares of the credit services provider’s stock worth $50,000 after acquiring an additional 469 shares in the last quarter. Finally, Blue Trust Inc. increased its stake in SLM by 32.2% in the 4th quarter. Blue Trust Inc. now owns 1,849 shares of the credit services provider’s stock valued at $51,000 after purchasing an additional 450 shares in the last quarter. Hedge funds and other institutional investors 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.