SLM (NASDAQ:SLM) Issues Earnings Results, Beats Estimates By $0.29 EPS

SLM (NASDAQ:SLM) released its quarterly earnings data on Wednesday. The credit services provider reported $1.27 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.98 by $0.29, RTT News reports. SLM had a net margin of 20.65% and a return on equity of 36.86%. During the same quarter in the previous year, the business posted $0.47 earnings per share. SLM updated its FY24 guidance to $2.60-$2.70 EPS.

SLM Stock Up 0.8 %

SLM traded up $0.17 during trading on Wednesday, hitting $22.10. 2,045,550 shares of the company’s stock were exchanged, compared to its average volume of 2,146,383. The business’s 50 day moving average is $20.84 and its two-hundred day moving average is $18.12. The stock has a market cap of $4.87 billion, a P/E ratio of 9.21, a PEG ratio of 0.43 and a beta of 1.16. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 3.21. SLM has a fifty-two week low of $12.26 and a fifty-two week high of $22.20.

SLM Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 17th. Shareholders of record on Thursday, June 6th will be issued a dividend of $0.11 per share. The ex-dividend date of this dividend is Thursday, June 6th. This represents a $0.44 annualized dividend and a yield of 1.99%. SLM’s payout ratio is 18.33%.

Insider Activity

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 value of $249,483.16. Following the completion of the sale, the executive vice president now owns 126,500 shares in the company, valued at $2,564,155. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. In related 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 transaction of $249,483.16. Following the completion of the sale, the executive vice president now owns 126,500 shares in the company, valued at $2,564,155. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 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 sale, the senior vice president now owns 52,751 shares of the company’s stock, valued at approximately $1,093,000.72. The disclosure for this sale can be found here. 0.91% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the stock. TheStreet raised shares of SLM from a “c+” rating to a “b” rating in a report on Wednesday, January 24th. Deutsche Bank Aktiengesellschaft began coverage on shares of SLM in a report on Wednesday, January 10th. They set a “buy” rating and a $25.00 target price on the stock. JPMorgan Chase & Co. increased their target price on shares of SLM from $20.00 to $22.00 and gave the stock a “neutral” rating in a research note on Wednesday, April 3rd. Wells Fargo & Company increased their target price on shares of SLM from $22.00 to $24.00 and gave the stock an “overweight” rating in a research note on Thursday, April 18th. Finally, Citigroup raised shares of SLM from a “neutral” rating to a “buy” rating and increased their target price for the stock from $14.00 to $23.00 in a research note on Tuesday, January 16th. Three research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $20.32.

SLM declared that its board has authorized a stock buyback program on Wednesday, January 24th that allows the company to buyback $650.00 million in outstanding shares. This buyback authorization allows the credit services provider to reacquire up to 14.5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.

SLM Company Profile

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.