SLM (NASDAQ:SLM) Reaches New 52-Week High on Analyst Upgrade

SLM Co. (NASDAQ:SLM)’s stock price hit a new 52-week high on Friday after Morgan Stanley raised their price target on the stock from $26.00 to $32.00. Morgan Stanley currently has an overweight rating on the stock. SLM traded as high as $28.24 and last traded at $28.04, with a volume of 895127 shares traded. The stock had previously closed at $27.47.

A number of other analysts have also recently issued reports on the company. Keefe, Bruyette & Woods reissued a “market perform” rating and set a $30.00 price objective (up previously from $27.00) on shares of SLM in a report on Monday, December 9th. Wedbush reissued an “outperform” rating and issued a $26.00 price target on shares of SLM in a report on Thursday, October 24th. Royal Bank of Canada reaffirmed an “outperform” rating and set a $26.00 price objective on shares of SLM in a research note on Thursday, October 24th. Bank of America started coverage on shares of SLM in a research note on Wednesday, September 25th. They issued a “buy” rating and a $27.00 target price on the stock. Finally, JPMorgan Chase & Co. raised their price target on shares of SLM from $24.00 to $27.00 and gave the company a “neutral” rating in a report on Monday, December 9th. Two equities research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $27.27.

Insider Buying and Selling

In other news, Director Robert S. Strong sold 4,500 shares of the company’s stock in a transaction on Monday, December 2nd. The shares were sold at an average price of $27.25, for a total value of $122,625.00. Following the completion of the sale, the director now owns 83,130 shares of the company’s stock, valued at approximately $2,265,292.50. This represents a 5.14 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 1.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On SLM

A number of large investors have recently added to or reduced their stakes in SLM. Waldron Private Wealth LLC bought a new position in shares of SLM during the third quarter valued at about $31,000. True Wealth Design LLC purchased a new stake in SLM during the 3rd quarter valued at about $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 acquiring an additional 1,094 shares during the last quarter. Capital Performance Advisors LLP purchased a new position in SLM in the 3rd quarter worth approximately $35,000. Finally, International Assets Investment Management LLC purchased a new position in SLM in the 2nd quarter worth approximately $60,000. Hedge funds and other institutional investors own 98.94% of the company’s stock.

SLM Stock Up 2.1 %

The stock has a market cap of $5.96 billion, a P/E ratio of 9.78, a P/E/G ratio of 0.85 and a beta of 1.21. The company has a quick ratio of 1.27, a current ratio of 1.29 and a debt-to-equity ratio of 3.21. The company has a 50-day simple moving average of $24.71 and a two-hundred day simple moving average of $22.58.

SLM (NASDAQ:SLM) last posted its quarterly earnings results on Wednesday, October 23rd. The credit services provider reported ($0.23) EPS for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.30). The firm 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 prior year, the company earned $0.11 earnings per share. On average, equities analysts forecast that SLM Co. will post 2.73 EPS for the current year.

SLM Increases Dividend

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

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.