SLM (NASDAQ:SLM) Posts Earnings Results, Beats Estimates By $0.18 EPS

SLM (NASDAQ:SLM) released its quarterly earnings results on Wednesday. The credit services provider reported $1.27 earnings per share for the quarter, beating analysts’ consensus estimates of $1.09 by $0.18, RTT News reports. SLM had a net margin of 25.15% and a return on equity of 45.65%. The company had revenue of $837.72 million for the quarter, compared to analyst estimates of $376.43 million. During the same period last year, the firm earned $0.47 earnings per share. SLM updated its FY24 guidance to $2.60-$2.70 EPS and its FY 2024 guidance to 2.600-2.700 EPS.

SLM Price Performance

SLM opened at $21.90 on Friday. The company has a market capitalization of $4.82 billion, a price-to-earnings ratio of 6.84, a PEG ratio of 0.45 and a beta of 1.16. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 2.67. The firm has a 50-day moving average price of $20.94 and a 200-day moving average price of $18.23. SLM has a twelve month low of $12.26 and a twelve month high of $22.37.

SLM Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 17th. Stockholders of record on Thursday, June 6th will be paid a $0.11 dividend. The ex-dividend date is Wednesday, June 5th. This represents a $0.44 annualized dividend and a dividend yield of 2.01%. SLM’s payout ratio is 13.75%.

Analysts Set New Price Targets

SLM has been the topic of a number of recent analyst reports. TheStreet raised shares of SLM from a “c+” rating to a “b” rating in a research report on Wednesday, January 24th. Royal Bank of Canada raised their price target on shares of SLM from $24.00 to $25.00 and gave the company an “outperform” rating in a research report on Thursday. Wedbush raised their price target on shares of SLM from $26.00 to $28.00 and gave the company an “outperform” rating in a research report on Thursday. JPMorgan Chase & Co. lifted their price objective on shares of SLM from $22.00 to $23.00 and gave the stock a “neutral” rating in a research report on Thursday. Finally, Deutsche Bank Aktiengesellschaft began coverage on shares of SLM in a research report on Wednesday, January 10th. They issued a “buy” rating and a $25.00 price objective on the stock. Three research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $21.32.

SLM declared that its board has authorized a stock repurchase program on Wednesday, January 24th that allows the company to repurchase $650.00 million in shares. This repurchase authorization allows the credit services provider to buy up to 14.5% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s leadership believes its shares are undervalued.

Insider Transactions at SLM

In related news, SVP Jonathan Boyles sold 94,078 shares of the business’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 transaction of $1,949,296.16. Following the completion of the transaction, the senior vice president now owns 52,751 shares of the company’s stock, valued at $1,093,000.72. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. In related news, SVP Jonathan Boyles sold 94,078 shares of the business’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 transaction of $1,949,296.16. Following the completion of the transaction, the senior vice president now owns 52,751 shares of the company’s stock, valued at $1,093,000.72. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, EVP Donna F. Vieira sold 12,308 shares of the business’s 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 directly owns 126,500 shares of the company’s stock, valued at approximately $2,564,155. The disclosure for this sale can be found here. Corporate insiders own 0.91% 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.