SLM (NASDAQ:SLM) Shares Gap Down on Disappointing Earnings

SLM Corporation (NASDAQ:SLM) shares gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $24.18, but opened at $23.00. SLM shares last traded at $23.7240, with a volume of 676,718 shares traded.

The credit services provider reported $0.29 earnings per share for the quarter, missing the consensus estimate of $0.46 by ($0.17). SLM had a return on equity of 34.80% and a net margin of 26.42%.The business had revenue of $401.11 million for the quarter, compared to the consensus estimate of $409.22 million. During the same quarter last year, the business posted $0.32 earnings per share. The firm’s revenue for the quarter was down .7% compared to the same quarter last year. SLM has set its FY 2026 guidance at 3.100-3.200 EPS.

SLM Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Friday, September 4th will be issued a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a yield of 2.2%. The ex-dividend date is Friday, September 4th. SLM’s dividend payout ratio (DPR) is presently 14.40%.

SLM News Roundup

Here are the key news stories impacting SLM this week:

• Positive Sentiment: SLM maintained or modestly raised its FY 2026 EPS guidance to 3.10-3.20, which may help reassure investors that full-year profitability remains intact despite the quarter’s miss. Sallie Mae Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Coverage highlighting the stock’s undervalued case and the potential benefit from student loan reform could support sentiment by suggesting upside if policy or valuation expectations improve. SLM Heads Into Earnings On Student Loan Reform Narrative and Undervalued Debate
• Neutral Sentiment: The company declared a quarterly common dividend of $0.13 per share, reinforcing capital-return discipline but not likely to be a major near-term driver for the stock. Sallie Mae Declares Dividends on Preferred Stock Series B and Common Stock
• Negative Sentiment: Q2 results missed expectations, with EPS of $0.29 versus $0.46 expected and revenue of $401.1 million below estimates, signaling softer-than-expected operating performance. Sallie Mae misses Q2 CY2026 sales expectations
• Negative Sentiment: The weaker quarter also included a year-over-year decline in earnings and slightly lower revenue, which may keep pressure on shares until investors see a clearer turnaround. Sallie Mae misses Q2 earnings and revenue estimates

Analyst Ratings Changes

Several equities analysts have recently commented on SLM shares. Compass Point upgraded SLM from a “sell” rating to a “neutral” rating and cut their price target for the company from $23.00 to $22.00 in a research note on Monday, March 30th. Barclays reissued an “equal weight” rating and set a $26.00 price objective (down from $30.00) on shares of SLM in a report on Tuesday, July 7th. Weiss Ratings raised SLM from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, June 18th. Zacks Research downgraded SLM from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 26th. Finally, Royal Bank Of Canada lifted their price target on SLM from $28.00 to $29.00 and gave the company an “outperform” rating in a report on Friday, July 10th. Five research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $29.80.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the company. Goldman Sachs Group Inc. grew its holdings in SLM by 33.4% in the first quarter. Goldman Sachs Group Inc. now owns 547,724 shares of the credit services provider’s stock worth $16,087,000 after purchasing an additional 137,285 shares during the last quarter. SG Americas Securities LLC lifted its holdings in shares of SLM by 63.1% during the 1st quarter. SG Americas Securities LLC now owns 261,392 shares of the credit services provider’s stock valued at $5,596,000 after purchasing an additional 101,120 shares during the last quarter. Entropy Technologies LP lifted its holdings in shares of 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. Captrust Financial Advisors boosted its position in shares of SLM by 31.3% in the 4th quarter. Captrust Financial Advisors now owns 53,673 shares of the credit services provider’s stock worth $1,452,000 after purchasing an additional 12,793 shares in the last quarter. Finally, Dynamic Technology Lab Private Ltd purchased a new position in SLM during the 1st quarter worth $263,000. Institutional investors own 98.94% of the company’s stock.

SLM Trading Down 1.6%

The company has a 50 day moving average of $23.51 and a two-hundred day moving average of $23.32. The stock has a market capitalization of $4.49 billion, a PE ratio of 6.59, a P/E/G ratio of 2.30 and a beta of 0.94. The company has a debt-to-equity ratio of 2.59, a quick ratio of 1.29 and a current ratio of 1.30.

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.