SLM (NASDAQ:SLM) Shares Gap Down After Earnings Miss

SLM Co. (NASDAQ:SLM)’s stock price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $22.80, but opened at $21.83. SLM shares last traded at $22.14, with a volume of 678,098 shares changing hands.

The credit services provider reported ($0.23) EPS for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.30). SLM had a net margin of 24.67% and a return on equity of 41.84%. During the same quarter in the prior year, the business earned $0.11 earnings per share.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the stock. Wells Fargo & Company lifted their target price on shares of SLM from $24.00 to $27.00 and gave the stock an “overweight” rating in a report on Friday, July 26th. Wedbush reissued an “outperform” rating and set a $26.00 price objective on shares of SLM in a report on Thursday. Barclays decreased their price objective on shares of SLM from $27.00 to $26.00 and set an “overweight” rating for the company in a report on Thursday. Royal Bank of Canada boosted their price objective on shares of SLM from $25.00 to $27.00 and gave the company an “outperform” rating in a report on Thursday, July 25th. Finally, Deutsche Bank Aktiengesellschaft boosted their price objective on shares of SLM from $25.00 to $29.00 and gave the company a “buy” rating in a report on Thursday, July 25th. Two investment analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $24.75.

Insider Buying and Selling

In related news, Director Robert S. Strong sold 4,500 shares of the company’s stock in a transaction on Thursday, August 1st. The shares were sold at an average price of $22.70, for a total transaction of $102,150.00. Following the completion of the transaction, the director now owns 101,093 shares in the company, valued at approximately $2,294,811.10. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 1.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On SLM

Hedge funds and other institutional investors have recently modified their holdings of the stock. Wellington Management Group LLP raised its stake in SLM by 24.7% during the fourth quarter. Wellington Management Group LLP now owns 333,391 shares of the credit services provider’s stock valued at $6,374,000 after purchasing an additional 66,007 shares in the last quarter. PNC Financial Services Group Inc. raised its stake in SLM by 8.0% during the fourth quarter. PNC Financial Services Group Inc. now owns 17,781 shares of the credit services provider’s stock valued at $340,000 after purchasing an additional 1,311 shares in the last quarter. Hexagon Capital Partners LLC raised its stake in SLM by 1,373.3% during the first quarter. Hexagon Capital Partners LLC now owns 1,326 shares of the credit services provider’s stock valued at $29,000 after purchasing an additional 1,236 shares in the last quarter. Allspring Global Investments Holdings LLC raised its stake in SLM by 46.8% during the first quarter. Allspring Global Investments Holdings LLC now owns 5,903 shares of the credit services provider’s stock valued at $129,000 after purchasing an additional 1,883 shares in the last quarter. Finally, Redmont Wealth Advisors LLC purchased a new stake in SLM during the first quarter valued at $748,000. Institutional investors own 98.94% of the company’s stock.

SLM Trading Down 3.0 %

The company has a market cap of $4.81 billion, a PE ratio of 6.89, a P/E/G ratio of 0.60 and a beta of 1.15. The stock’s 50 day moving average is $21.90 and its 200-day moving average is $21.49. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 2.66.

SLM Company Profile

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.