SLM (NASDAQ:SLM) Shares Gap Down After Earnings Miss

SLM Co. (NASDAQ:SLM) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $22.80, but opened at $21.83. SLM shares last traded at $22.14, with a volume of 678,098 shares trading hands.

The credit services provider reported ($0.23) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.07 by ($0.30). SLM had a return on equity of 41.84% and a net margin of 24.67%. The company had revenue of $652.64 million during the quarter, compared to analysts’ expectations of $363.40 million. During the same quarter in the prior year, the business posted $0.11 EPS.

SLM Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, December 16th. Shareholders of record on Thursday, December 5th will be paid a dividend of $0.13 per share. This is an increase from SLM’s previous quarterly dividend of $0.11. This represents a $0.52 dividend on an annualized basis and a dividend yield of 2.37%. The ex-dividend date of this dividend is Thursday, December 5th. SLM’s payout ratio is currently 13.75%.

Analyst Ratings Changes

A number of brokerages have recently issued reports on SLM. Keefe, Bruyette & Woods boosted their price objective on shares of SLM from $25.00 to $27.00 and gave the company an “outperform” rating in a research report on Thursday, July 25th. Deutsche Bank Aktiengesellschaft boosted their price objective on SLM from $25.00 to $29.00 and gave the stock a “buy” rating in a research note on Thursday, July 25th. Royal Bank of Canada restated an “outperform” rating and issued a $26.00 target price on shares of SLM in a report on Thursday. JPMorgan Chase & Co. dropped their price objective on SLM from $25.00 to $24.00 and set a “neutral” rating for the company in a report on Monday, October 7th. Finally, Wells Fargo & Company boosted their price objective on shares of SLM from $24.00 to $27.00 and gave the company an “overweight” rating in a research report on Friday, July 26th. Two investment analysts have rated the stock with a hold rating and ten have issued a buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $24.67.

Insider Transactions at SLM

In other SLM news, Director Robert S. Strong sold 4,500 shares of the company’s stock in a transaction that occurred on Thursday, August 1st. The shares were sold at an average price of $22.70, for a total transaction of $102,150.00. Following the transaction, the director now owns 101,093 shares in the company, valued at approximately $2,294,811.10. This represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 1.20% of the company’s stock.

Institutional Trading of SLM

Large investors have recently added to or reduced their stakes in the company. Hexagon Capital Partners LLC boosted its holdings in shares of SLM by 1,373.3% in the 1st quarter. Hexagon Capital Partners LLC now owns 1,326 shares of the credit services provider’s stock valued at $29,000 after acquiring an additional 1,236 shares during the last quarter. Waldron Private Wealth LLC purchased a new stake in SLM in the third quarter valued at $31,000. Blue Trust Inc. grew its position in SLM by 358.7% during the 3rd quarter. Blue Trust Inc. now owns 1,399 shares of the credit services provider’s stock worth $32,000 after purchasing an additional 1,094 shares during the period. International Assets Investment Management LLC purchased a new position in shares of SLM during the 2nd quarter valued at about $60,000. Finally, Covestor Ltd lifted its holdings in shares of SLM by 378.1% in the 1st quarter. Covestor Ltd now owns 3,050 shares of the credit services provider’s stock valued at $66,000 after buying an additional 2,412 shares during the period. Hedge funds and other institutional investors own 98.94% of the company’s stock.

SLM Stock Down 1.4 %

The stock has a market cap of $4.81 billion, a PE ratio of 6.84, a P/E/G ratio of 0.60 and a beta of 1.15. The business has a 50 day moving average price of $21.94 and a 200 day moving average price of $21.50. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 2.66.

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.