SLM (NASDAQ:SLM) Reaches New 12-Month High After Dividend Announcement

SLM Co. (NASDAQ:SLM) shares reached a new 52-week high during mid-day trading on Wednesday after the company announced a dividend. The company traded as high as $28.99 and last traded at $28.79, with a volume of 157370 shares trading hands. The stock had previously closed at $28.57.

The newly announced dividend which will be paid on Monday, March 17th. Stockholders of record on Wednesday, March 5th will be given a $0.13 dividend. This represents a $0.52 annualized dividend and a dividend yield of 1.77%. The ex-dividend date of this dividend is Wednesday, March 5th. SLM’s dividend payout ratio (DPR) is currently 18.12%.

Wall Street Analysts Forecast Growth

SLM has been the subject of several analyst reports. Keefe, Bruyette & Woods reaffirmed a “market perform” rating and issued a $30.00 price objective (up from $27.00) on shares of SLM in a report on Monday, December 9th. Barclays reduced their price objective on shares of SLM from $27.00 to $26.00 and set an “overweight” rating for the company in a research note on Thursday, October 24th. Royal Bank of Canada reissued an “outperform” rating and issued a $26.00 price target on shares of SLM in a report on Thursday, October 24th. Wedbush reissued an “outperform” rating and set a $26.00 price objective on shares of SLM in a report on Thursday, October 24th. Finally, JPMorgan Chase & Co. upped their target price on SLM from $27.00 to $29.00 and gave the stock a “neutral” rating in a research note on Tuesday, January 14th. Two research analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $27.90.

SLM Stock Up 0.8 %

The company has a current ratio of 1.29, a quick ratio of 1.27 and a debt-to-equity ratio of 3.21. The stock has a 50 day simple moving average of $27.18 and a 200 day simple moving average of $23.83. The firm has a market capitalization of $6.22 billion, a PE ratio of 10.21, a PEG ratio of 0.79 and a beta of 1.21.

SLM (NASDAQ:SLM) last issued its earnings results on Thursday, January 23rd. The credit services provider reported $0.50 EPS for the quarter, missing the consensus estimate of $0.56 by ($0.06). SLM had a return on equity of 35.92% and a net margin of 22.18%. As a group, sell-side analysts forecast that SLM Co. will post 2.72 earnings per share for the current year.

Insider Activity

In related news, Director Robert S. Strong sold 4,500 shares of the firm’s stock in a transaction on Monday, December 2nd. The stock was sold at an average price of $27.25, for a total value of $122,625.00. Following the completion of the sale, the director now owns 83,130 shares of the company’s stock, valued at $2,265,292.50. This trade represents a 5.14 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 1.20% of the company’s stock.

Institutional Investors Weigh In On SLM

A number of large investors have recently modified their holdings of the stock. Blue Trust Inc. lifted its holdings in SLM by 32.2% in the fourth quarter. Blue Trust Inc. now owns 1,849 shares of the credit services provider’s stock worth $51,000 after buying an additional 450 shares during the period. Empowered Funds LLC raised its position in shares of SLM by 4.8% in the 3rd quarter. Empowered Funds LLC now owns 11,594 shares of the credit services provider’s stock worth $265,000 after acquiring an additional 526 shares in the last quarter. Wealth Enhancement Advisory Services LLC lifted its stake in shares of SLM by 1.7% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 33,825 shares of the credit services provider’s stock valued at $933,000 after purchasing an additional 552 shares during the period. GAMMA Investing LLC boosted its position in shares of SLM by 13.3% during the third quarter. GAMMA Investing LLC now owns 5,077 shares of the credit services provider’s stock valued at $116,000 after purchasing an additional 594 shares in the last quarter. Finally, Creative Planning grew its stake in SLM by 5.3% in the third quarter. Creative Planning now owns 18,708 shares of the credit services provider’s stock worth $428,000 after purchasing an additional 942 shares during the period. Institutional investors own 98.94% of the company’s stock.

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.