Zacks Research Downgrades SLM (NASDAQ:SLM) to Strong Sell

SLM (NASDAQ:SLM) was downgraded by analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report released on Thursday,Zacks.com reports.

Other equities research analysts have also recently issued reports about the stock. JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $29.00 target price (down from $38.00) on shares of SLM in a research report on Tuesday, October 7th. Keefe, Bruyette & Woods lowered their price objective on shares of SLM from $31.00 to $29.00 and set a “market perform” rating for the company in a report on Wednesday, December 10th. Cowen reiterated a “buy” rating on shares of SLM in a report on Friday, December 5th. Jefferies Financial Group decreased their target price on SLM from $40.00 to $31.00 and set a “buy” rating for the company in a research report on Friday, October 17th. Finally, Barclays dropped their price target on SLM from $43.00 to $35.00 and set an “overweight” rating on the stock in a research report on Monday, October 6th. Seven investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, SLM has an average rating of “Hold” and a consensus price target of $31.60.

SLM Price Performance

Shares of SLM stock opened at $27.41 on Thursday. The firm has a market cap of $5.57 billion, a P/E ratio of 9.62, a P/E/G ratio of 1.14 and a beta of 1.14. SLM has a fifty-two week low of $23.81 and a fifty-two week high of $34.97. The business’s 50 day moving average price is $27.76 and its 200-day moving average price is $29.51. The company has a debt-to-equity ratio of 3.27, a quick ratio of 1.37 and a current ratio of 1.37.

SLM (NASDAQ:SLM) last announced its earnings results on Monday, February 14th. The credit services provider reported $1.15 EPS for the quarter. SLM had a return on equity of 30.13% and a net margin of 21.76%.The company had revenue of ($3.44) million during the quarter. SLM has set its FY 2022 guidance at $2.800-$3.000 EPS. On average, equities research analysts anticipate that SLM will post 3.07 earnings per share for the current year.

Institutional Investors Weigh In On SLM

Several hedge funds have recently added to or reduced their stakes in the stock. Triumph Capital Management bought a new position in shares of SLM during the third quarter valued at $69,000. Entropy Technologies LP grew its position in SLM by 616.6% during the 3rd quarter. Entropy Technologies LP now owns 109,485 shares of the credit services provider’s stock valued at $3,031,000 after purchasing an additional 94,207 shares during the last quarter. Redmont Wealth Advisors LLC purchased a new stake in SLM during the 3rd quarter valued at about $951,000. Arkadios Wealth Advisors increased its stake in SLM by 11.4% during the 3rd quarter. Arkadios Wealth Advisors now owns 8,315 shares of the credit services provider’s stock valued at $230,000 after purchasing an additional 853 shares in the last quarter. Finally, Quent Capital LLC purchased a new position in SLM in the third quarter worth about $118,000. 98.94% of the stock is owned by institutional investors.

About SLM

SLM Corporation, operating as Sallie Mae Bank, is a leading U.S.-based consumer banking company specializing in education financing and related banking products. The company provides a range of private student loans for undergraduate and graduate studies, Parent PLUS loans, and specialized financing for career and certificate programs. In addition to its core lending services, Sallie Mae offers deposit products including savings accounts, checking accounts, money market accounts, certificates of deposit, and credit cards tailored to students and young adults.

Founded in 1972 as the Student Loan Marketing Association—a government-sponsored enterprise—Sallie Mae was privatized in 2004 and has since focused on expanding its private education loan offerings and digital banking solutions.