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

SLM Co. (NASDAQ:SLM) shares gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $22.80, but opened at $21.83. SLM shares last traded at $22.14, with a volume of 678,098 shares changing hands.

The credit services provider reported ($0.23) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.07 by ($0.30). SLM had a net margin of 24.67% and a return on equity of 41.84%. During the same quarter last year, the firm earned $0.11 earnings per share.

Wall Street Analyst Weigh In

SLM has been the subject of several recent analyst reports. Royal Bank of Canada increased their price objective on shares of SLM from $25.00 to $27.00 and gave the stock an “outperform” rating in a research report on Thursday, July 25th. JPMorgan Chase & Co. decreased their price objective on shares of SLM from $25.00 to $24.00 and set a “neutral” rating for the company in a research report on Monday, October 7th. Barclays decreased their price objective on shares of SLM from $27.00 to $26.00 and set an “overweight” rating for the company in a research report on Thursday. Bank of America initiated coverage on shares of SLM in a research report on Wednesday, September 25th. They set a “buy” rating and a $27.00 price objective for the company. Finally, Wedbush reiterated an “outperform” rating and set a $26.00 price objective on shares of SLM in a research report on Thursday. Two research analysts have rated the stock with a hold rating and ten have issued a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $24.75.

Insider Buying and Selling at SLM

In other SLM news, Director Robert S. Strong sold 4,500 shares of the firm’s stock in a transaction on Thursday, August 1st. The shares were sold at an average price of $22.70, for a total value of $102,150.00. Following the transaction, the director now directly owns 101,093 shares of the company’s stock, valued at approximately $2,294,811.10. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 1.20% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. Hexagon Capital Partners LLC lifted its position in shares of SLM by 1,373.3% during the first quarter. Hexagon Capital Partners LLC now owns 1,326 shares of the credit services provider’s stock valued at $29,000 after purchasing an additional 1,236 shares in the last quarter. Waldron Private Wealth LLC purchased a new position in shares of SLM in the third quarter worth about $31,000. Blue Trust Inc. increased its stake in shares of SLM by 358.7% in the third quarter. Blue Trust Inc. now owns 1,399 shares of the credit services provider’s stock worth $32,000 after purchasing an additional 1,094 shares in the last quarter. International Assets Investment Management LLC purchased a new position in shares of SLM in the second quarter worth about $60,000. Finally, Covestor Ltd increased its stake in shares of SLM by 378.1% in the first quarter. Covestor Ltd now owns 3,050 shares of the credit services provider’s stock worth $66,000 after purchasing an additional 2,412 shares in the last quarter. 98.94% of the stock is owned by institutional investors.

SLM Price Performance

The stock has a market cap of $4.81 billion, a PE ratio of 6.89, a P/E/G ratio of 0.60 and a beta of 1.15. The company has a debt-to-equity ratio of 2.66, a current ratio of 1.26 and a quick ratio of 1.26. The firm’s 50 day moving average price is $21.90 and its two-hundred day moving average price is $21.49.

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.