SLM (NASDAQ:SLM) Updates FY24 Earnings Guidance

SLM (NASDAQ:SLM) issued an update on its FY24 earnings guidance on Wednesday morning. The company provided earnings per share guidance of $2.60-$2.70 for the period, compared to the consensus earnings per share estimate of $2.70.

SLM Stock Up 0.8 %

SLM traded up $0.17 during midday trading on Wednesday, hitting $22.10. The company had a trading volume of 2,045,550 shares, compared to its average volume of 2,146,383. SLM has a 52 week low of $12.26 and a 52 week high of $22.20. 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 $4.87 billion, a price-to-earnings ratio of 9.14, a PEG ratio of 0.43 and a beta of 1.16. The stock’s 50 day moving average price is $20.84 and its 200 day moving average price is $18.12.

SLM (NASDAQ:SLM) last posted its earnings results on Wednesday, April 24th. The credit services provider reported $1.27 EPS for the quarter, topping the consensus estimate of $0.98 by $0.29. 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 firm earned $0.47 earnings per share. On average, research analysts anticipate that SLM will post 2.72 earnings per share for the current fiscal year.

SLM Announces Dividend

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

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

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. Citigroup upgraded shares of SLM from a neutral rating to a buy rating and boosted their target price for the company from $14.00 to $23.00 in a research note on Tuesday, January 16th. Deutsche Bank Aktiengesellschaft started coverage on shares of SLM in a research report on Wednesday, January 10th. They issued a buy rating and a $25.00 price target on the stock. Wells Fargo & Company boosted their price target on shares of SLM from $22.00 to $24.00 and gave the company an overweight rating in a research report on Thursday, April 18th. JPMorgan Chase & Co. boosted their price target on shares of SLM from $20.00 to $22.00 and gave the company a neutral rating in a research report on Wednesday, April 3rd. Finally, Royal Bank of Canada boosted their price target on shares of SLM from $21.00 to $22.00 and gave the company an outperform rating in a research report on Thursday, January 25th. Three research analysts have rated the stock with a hold rating and eight have given a buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of Moderate Buy and an average price target of $20.32.

Insider Activity

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

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.