SLM (NASDAQ:SLM) Hits New 12-Month Low – Here’s Why

SLM Corporation (NASDAQ:SLM)’s stock price reached a new 52-week low on Tuesday. The company traded as low as $16.64 and last traded at $16.8930, with a volume of 836,248 shares trading hands. The stock had previously closed at $16.91.

Analysts Set New Price Targets

Several research firms have recently weighed in on SLM. Wells Fargo & Company dropped their target price on shares of SLM from $28.00 to $24.00 and set an “overweight” rating on the stock in a research report on Friday, October 23rd. TD Cowen reduced their price target on shares of SLM from $32.00 to $27.00 and set a “buy” rating for the company in a research report on Friday, October 23rd. Royal Bank Of Canada decreased their price objective on shares of SLM from $28.00 to $26.00 and set an “outperform” rating for the company in a research note on Friday, October 23rd. JPMorgan Chase & Co. decreased their price objective on shares of SLM from $25.00 to $22.00 and set an “underweight” rating for the company in a research note on Monday, October 12th. Finally, Morgan Stanley lowered their price objective on shares of SLM from $30.00 to $26.00 and set an “overweight” rating on the stock in a research report on Friday, October 23rd. Five investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, SLM presently has a consensus rating of “Hold” and a consensus target price of $26.44.

SLM Trading Down 0.0%

The firm has a market cap of $3.09 billion, a P/E ratio of 6.12 and a beta of 1.01. The company has a 50 day moving average of $22.56 and a 200 day moving average of $23.32. The company has a debt-to-equity ratio of 2.76, a quick ratio of 1.16 and a current ratio of 1.23.

SLM (NASDAQ:SLM) last released its quarterly earnings data on Thursday, October 22nd. The credit services provider reported ($0.19) EPS for the quarter, missing analysts’ consensus estimates of $0.17 by ($0.36). The firm had revenue of $375.47 million during the quarter, compared to analyst estimates of $453.34 million. SLM had a return on equity of 26.34% and a net margin of 20.43%. The company’s quarterly revenue was down 31.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.63 EPS. Analysts predict that SLM Corporation will post 2.02 EPS for the current fiscal year.

SLM Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Friday, December 4th will be paid a dividend of $0.13 per share. The ex-dividend date is Friday, December 4th. This represents a $0.52 annualized dividend and a dividend yield of 3.1%. SLM’s dividend payout ratio is 18.84%.

Hedge Funds Weigh In On SLM

Hedge funds have recently bought and sold shares of the business. Edgestream Partners L.P. bought a new stake in SLM in the 3rd quarter valued at $8,215,000. IFG Advisory LLC grew its position in SLM by 29,168.0% in the 3rd quarter. IFG Advisory LLC now owns 57,658 shares of the credit services provider’s stock worth $1,305,000 after purchasing an additional 57,461 shares during the last quarter. Fifth Third Bancorp grew its position in SLM by 30.5% in the 3rd quarter. Fifth Third Bancorp now owns 59,790 shares of the credit services provider’s stock worth $1,353,000 after purchasing an additional 13,988 shares during the last quarter. Lido Advisors LLC increased its holdings in shares of SLM by 31.9% during the 3rd quarter. Lido Advisors LLC now owns 11,133 shares of the credit services provider’s stock worth $252,000 after purchasing an additional 2,695 shares during the period. Finally, Ethic Inc. increased its holdings in shares of SLM by 15.5% during the 3rd quarter. Ethic Inc. now owns 10,213 shares of the credit services provider’s stock worth $231,000 after purchasing an additional 1,367 shares during the period. 98.94% of the stock is owned by institutional investors and hedge funds.

About SLM

SLM Corporation, commonly known as Sallie Mae, is a U.S.-based education finance company. Through Sallie Mae Bank, it primarily provides private student loans to undergraduate and graduate students, as well as loans for career training and other education-related expenses. The company also offers consumer banking products, including savings accounts and certificates of deposit. Its services include supporting borrowers through loan application, repayment and customer service processes. Founded in 1972 as the Student Loan Marketing Association, the organization was later privatized and became known as Sallie Mae.