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

SLM (NASDAQ:SLM) announced its quarterly earnings results on Wednesday. The credit services provider reported $1.27 EPS for the quarter, beating analysts’ consensus estimates of $1.09 by $0.18, RTT News reports. SLM had a return on equity of 47.72% and a net margin of 25.15%. The company had revenue of $837.72 million during the quarter, compared to analyst estimates of $376.43 million. During the same period in the prior year, the company 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 Stock Performance

Shares of SLM traded up $0.01 during midday trading on Friday, reaching $21.94. 455,288 shares of the stock were exchanged, compared to its average volume of 2,134,993. The business’s 50-day moving average price is $20.91 and its 200 day moving average price is $18.17. The company has a debt-to-equity ratio of 3.21, a current ratio of 1.22 and a quick ratio of 1.22. SLM has a twelve month low of $12.26 and a twelve month high of $22.37. The company has a market capitalization of $4.83 billion, a price-to-earnings ratio of 6.85, a PEG ratio of 0.45 and a beta of 1.16.

SLM Dividend Announcement

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

Insider Activity at SLM

In related news, EVP Donna F. Vieira sold 12,308 shares of the business’s stock in a transaction dated Tuesday, January 30th. The stock was sold at an average price of $20.27, for a total value of $249,483.16. Following the transaction, the executive vice president now owns 126,500 shares in the company, valued at approximately $2,564,155. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other news, SVP Jonathan Boyles sold 94,078 shares of the business’s stock in a transaction that occurred on Thursday, February 29th. The stock was sold at an average price of $20.72, for a total transaction of $1,949,296.16. Following the sale, the senior vice president now owns 52,751 shares of the company’s stock, valued at approximately $1,093,000.72. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Donna F. Vieira sold 12,308 shares of SLM stock in a transaction that occurred on Tuesday, January 30th. The stock was sold at an average price of $20.27, for a total value of $249,483.16. Following the transaction, the executive vice president now owns 126,500 shares of the company’s stock, valued at $2,564,155. The disclosure for this sale can be found here. 0.91% of the stock is currently owned by insiders.

SLM announced that its board has approved a share buyback program on Wednesday, January 24th that permits the company to buyback $650.00 million in outstanding shares. This buyback authorization permits the credit services provider to reacquire up to 14.5% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board believes its shares are undervalued.

Analyst Ratings Changes

A number of research firms have recently weighed in on SLM. TheStreet raised SLM from a “c+” rating to a “b” rating in a research report on Wednesday, January 24th. Royal Bank of Canada increased their price objective on SLM from $24.00 to $25.00 and gave the stock an “outperform” rating in a research report on Thursday. Deutsche Bank Aktiengesellschaft initiated coverage on SLM in a research report on Wednesday, January 10th. They issued a “buy” rating and a $25.00 price objective for the company. Wedbush increased their price objective on SLM from $26.00 to $28.00 and gave the stock an “outperform” rating in a research report on Thursday. Finally, Wells Fargo & Company raised their price target on SLM from $22.00 to $24.00 and gave the stock an “overweight” rating in a research report on Thursday, April 18th. Three investment analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $21.32.

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.