Wedbush Analysts Cut Earnings Estimates for SLM Co. (NASDAQ:SLM)

SLM Co. (NASDAQ:SLM) – Research analysts at Wedbush reduced their Q2 2024 earnings estimates for SLM in a research note issued to investors on Thursday, April 25th. Wedbush analyst D. Chiaverini now forecasts that the credit services provider will earn $0.44 per share for the quarter, down from their previous forecast of $0.45. Wedbush currently has a “Outperform” rating and a $28.00 target price on the stock. The consensus estimate for SLM’s current full-year earnings is $2.71 per share. Wedbush also issued estimates for SLM’s Q3 2024 earnings at $0.49 EPS, Q4 2024 earnings at $0.45 EPS, FY2024 earnings at $2.66 EPS, Q1 2025 earnings at $1.25 EPS, Q2 2025 earnings at $0.48 EPS, Q3 2025 earnings at $0.59 EPS and Q4 2025 earnings at $0.58 EPS.

SLM (NASDAQ:SLM) last announced its earnings results on Wednesday, April 24th. The credit services provider reported $1.27 EPS for the quarter, topping the consensus estimate of $1.09 by $0.18. SLM had a net margin of 25.15% and a return on equity of 45.65%. The business had revenue of $837.72 million during the quarter, compared to analysts’ expectations of $376.43 million. During the same quarter in the prior year, the company posted $0.47 earnings per share.

A number of other research firms have also recently issued reports on SLM. JPMorgan Chase & Co. raised their target price on shares of SLM from $22.00 to $23.00 and gave the stock a “neutral” rating in a research note on Thursday. TheStreet upgraded shares of SLM from a “c+” rating to a “b” rating in a research note on Wednesday, January 24th. Citigroup upgraded shares of SLM from a “neutral” rating to a “buy” rating and raised their target price for the stock from $14.00 to $23.00 in a research note on Tuesday, January 16th. Royal Bank of Canada raised their target price on shares of SLM from $24.00 to $25.00 and gave the stock an “outperform” rating in a research note on Thursday. Finally, Deutsche Bank Aktiengesellschaft began coverage on shares of SLM in a research note on Wednesday, January 10th. They set a “buy” rating and a $25.00 target price for the company. Three research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $21.32.

SLM Stock Performance

Shares of SLM stock opened at $21.90 on Friday. The stock has a market cap of $4.82 billion, a P/E ratio of 6.84, a P/E/G ratio of 0.45 and a beta of 1.16. The company has a debt-to-equity ratio of 2.67, a current ratio of 1.23 and a quick ratio of 1.22. The company has a fifty day moving average price of $20.94 and a two-hundred day moving average price of $18.27. SLM has a one year low of $12.26 and a one year high of $22.37.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. SYSTM Wealth Solutions LLC grew its holdings in shares of SLM by 37.0% in the first quarter. SYSTM Wealth Solutions LLC now owns 1,828 shares of the credit services provider’s stock worth $40,000 after purchasing an additional 494 shares during the last quarter. Signaturefd LLC grew its holdings in shares of SLM by 7.7% in the fourth quarter. Signaturefd LLC now owns 7,891 shares of the credit services provider’s stock worth $151,000 after purchasing an additional 565 shares during the last quarter. Blue Trust Inc. boosted its holdings in SLM by 81.4% in the fourth quarter. Blue Trust Inc. now owns 1,328 shares of the credit services provider’s stock valued at $25,000 after acquiring an additional 596 shares in the last quarter. Headlands Technologies LLC boosted its holdings in SLM by 46.4% in the fourth quarter. Headlands Technologies LLC now owns 2,330 shares of the credit services provider’s stock valued at $45,000 after acquiring an additional 739 shares in the last quarter. Finally, Neuberger Berman Group LLC boosted its holdings in SLM by 3.0% in the fourth quarter. Neuberger Berman Group LLC now owns 26,541 shares of the credit services provider’s stock valued at $507,000 after acquiring an additional 772 shares in the last quarter. 98.94% of the stock is currently owned by institutional investors.

Insider Transactions at SLM

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 sale, 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 SEC, which is available at this link. In related news, SVP Jonathan Boyles sold 94,078 shares of the firm’s stock in a transaction that occurred on 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 sale, the senior vice president now directly owns 52,751 shares of the company’s stock, valued at $1,093,000.72. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Donna F. Vieira sold 12,308 shares of the stock in a transaction that occurred on Tuesday, January 30th. The shares were sold at an average price of $20.27, for a total transaction of $249,483.16. Following the transaction, the executive vice president now owns 126,500 shares in the company, valued at $2,564,155. The disclosure for this sale can be found here. Insiders own 0.91% of the company’s stock.

SLM Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, June 17th. Stockholders of record on Thursday, June 6th will be issued 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 payout ratio is 13.75%.

SLM announced that its board has authorized a stock repurchase 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 buy up to 14.5% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its stock is undervalued.

About SLM

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.