SLM (NASDAQ:SLM) Hits New 1-Year High – Still a Buy?

Shares of SLM Co. (NASDAQ:SLM) reached a new 52-week high during mid-day trading on Thursday . The company traded as high as $28.34 and last traded at $28.34, with a volume of 216 shares. The stock had previously closed at $27.58.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on SLM shares. Wedbush restated an “outperform” rating and set a $26.00 price target on shares of SLM in a report on Thursday, October 24th. Bank of America started coverage on SLM in a research report on Wednesday, September 25th. They issued a “buy” rating and a $27.00 target price on the stock. Morgan Stanley lifted their price target on SLM from $26.00 to $32.00 and gave the company an “overweight” rating in a report on Thursday, December 19th. Keefe, Bruyette & Woods reaffirmed a “market perform” rating and set a $30.00 price objective (up previously from $27.00) on shares of SLM in a research report on Monday, December 9th. Finally, Barclays decreased their target price on shares of SLM from $27.00 to $26.00 and set an “overweight” rating for the company in a research report on Thursday, October 24th. Two equities research analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $27.27.

SLM Price Performance

The company has a market capitalization of $5.98 billion, a P/E ratio of 9.82, a PEG ratio of 0.85 and a beta of 1.21. The stock’s fifty day simple moving average is $25.76 and its 200-day simple moving average is $23.12. The company has a debt-to-equity ratio of 3.21, a current ratio of 1.29 and a quick ratio of 1.27.

SLM (NASDAQ:SLM) last announced its earnings results on Wednesday, October 23rd. The credit services provider reported ($0.23) earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.30). The business had revenue of $652.64 million for the quarter, compared to the consensus estimate of $363.40 million. SLM had a net margin of 22.18% and a return on equity of 35.92%. During the same quarter in the previous year, the company earned $0.11 EPS. On average, equities analysts forecast that SLM Co. will post 2.73 earnings per share for the current fiscal year.

SLM Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, December 16th. Investors of record on Thursday, December 5th were given a dividend of $0.13 per share. The ex-dividend date was Thursday, December 5th. This represents a $0.52 dividend on an annualized basis and a yield of 1.85%. This is a positive change from SLM’s previous quarterly dividend of $0.11. SLM’s payout ratio is 18.12%.

Insider Buying and Selling at SLM

In other news, Director Robert S. Strong sold 4,500 shares of SLM stock in a transaction that occurred on Monday, December 2nd. The stock was sold at an average price of $27.25, for a total transaction of $122,625.00. Following the sale, the director now owns 83,130 shares of the company’s stock, valued at approximately $2,265,292.50. This trade represents a 5.14 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 1.20% of the company’s stock.

Institutional Investors Weigh In On SLM

Several institutional investors and hedge funds have recently bought and sold shares of the business. Allspring Global Investments Holdings LLC boosted its stake in SLM by 119.9% in the 2nd quarter. Allspring Global Investments Holdings LLC now owns 12,979 shares of the credit services provider’s stock valued at $270,000 after buying an additional 7,076 shares in the last quarter. Commonwealth Equity Services LLC bought a new position in SLM during the 2nd quarter valued at about $298,000. National Bank of Canada FI boosted its position in SLM by 2.2% in the second quarter. National Bank of Canada FI now owns 58,990 shares of the credit services provider’s stock valued at $1,217,000 after buying an additional 1,278 shares in the last quarter. Victory Capital Management Inc. grew its stake in SLM by 62.8% during the second quarter. Victory Capital Management Inc. now owns 112,871 shares of the credit services provider’s stock worth $2,347,000 after buying an additional 43,542 shares during the last quarter. Finally, Savant Capital LLC increased its holdings in shares of SLM by 16.1% during the second quarter. Savant Capital LLC now owns 123,875 shares of the credit services provider’s stock worth $2,575,000 after buying an additional 17,188 shares in the last quarter. 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.