SLM (NASDAQ:SLM) Releases Earnings Results, Beats Expectations By $0.18 EPS

SLM (NASDAQ:SLM) posted its quarterly earnings results on Wednesday. The credit services provider reported $1.27 earnings per share for the quarter, topping analysts’ consensus estimates of $1.09 by $0.18, RTT News reports. The business had revenue of $837.72 million during the quarter, compared to the consensus estimate of $376.43 million. SLM had a net margin of 25.15% and a return on equity of 47.72%. During the same period in the previous year, the firm posted $0.47 earnings per share. SLM updated its FY24 guidance to $2.60-$2.70 EPS and its FY 2024 guidance to 2.600-2.700 EPS.

SLM Stock Up 0.0 %

Shares of SLM stock traded up $0.01 during trading on Friday, reaching $21.94. The company’s stock had a trading volume of 455,288 shares, compared to its average volume of 2,134,993. 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 business has a fifty day moving average price of $20.91 and a 200-day moving average price of $18.17. SLM has a one year low of $12.26 and a one year high of $22.37. The company has a market cap of $4.83 billion, a price-to-earnings ratio of 6.85, a price-to-earnings-growth ratio of 0.45 and a beta of 1.16.

SLM Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 17th. Stockholders of record on Thursday, June 6th will be given a $0.11 dividend. This represents a $0.44 dividend on an annualized basis and a dividend yield of 2.01%. The ex-dividend date of this dividend is Wednesday, June 5th. SLM’s dividend payout ratio is presently 13.75%.

SLM announced that its Board of Directors has approved a share buyback program on Wednesday, January 24th that allows the company to repurchase $650.00 million in outstanding shares. This repurchase authorization allows the credit services provider to reacquire up to 14.5% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s leadership believes its stock is undervalued.

Wall Street Analyst Weigh In

SLM has been the subject of a number of recent research reports. Wells Fargo & Company boosted their price target 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. Deutsche Bank Aktiengesellschaft started coverage on shares of SLM in a report on Wednesday, January 10th. They issued a “buy” rating and a $25.00 price target for the company. JPMorgan Chase & Co. upped their price target on shares of SLM from $22.00 to $23.00 and gave the company a “neutral” rating in a report on Thursday. Citigroup upgraded shares of SLM from a “neutral” rating to a “buy” rating and upped their price target for the company from $14.00 to $23.00 in a report on Tuesday, January 16th. Finally, Royal Bank of Canada upped their price target on shares of SLM from $24.00 to $25.00 and gave the company an “outperform” rating in a report on Thursday. Three equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $21.32.

Insiders Place Their Bets

In other SLM news, SVP Jonathan Boyles sold 94,078 shares of the company’s stock in a transaction on Thursday, February 29th. The shares were 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 directly owns 52,751 shares of the company’s stock, valued at $1,093,000.72. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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 transaction, the executive vice president now directly owns 126,500 shares of the company’s stock, valued at $2,564,155. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Jonathan Boyles sold 94,078 shares of the stock in a transaction dated Thursday, February 29th. The shares were sold at an average price of $20.72, for a total transaction of $1,949,296.16. Following the completion of the transaction, the senior vice president now directly owns 52,751 shares in the company, valued at $1,093,000.72. The disclosure for this sale can be found here. Insiders own 0.91% of the company’s stock.

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.