SLM (NASDAQ:SLM) Reaches New 12-Month Low – Here’s Why

SLM Corporation (NASDAQ:SLM) hit a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $19.55 and last traded at $19.84, with a volume of 5755184 shares changing hands. The stock had previously closed at $19.86.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the company. Morgan Stanley decreased their target price on SLM from $30.00 to $29.00 and set an “equal weight” rating for the company in a research report on Wednesday, February 18th. Keefe, Bruyette & Woods reduced their price target on SLM from $31.00 to $29.00 and set a “market perform” rating on the stock in a research report on Wednesday, December 10th. Compass Point cut SLM from a “buy” rating to a “sell” rating and decreased their price target for the stock from $35.00 to $23.00 in a report on Tuesday, December 9th. Wells Fargo & Company lifted their price objective on shares of SLM from $30.00 to $32.00 and gave the company an “overweight” rating in a research note on Friday, January 23rd. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $40.00 target price on shares of SLM in a research report on Friday, January 23rd. Six research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, SLM presently has an average rating of “Hold” and a consensus price target of $31.60.

SLM Trading Up 4.8%

The company has a current ratio of 1.28, a quick ratio of 1.24 and a debt-to-equity ratio of 2.44. The business has a 50 day simple moving average of $26.17 and a two-hundred day simple moving average of $27.68. The stock has a market cap of $4.24 billion, a price-to-earnings ratio of 6.16, a price-to-earnings-growth ratio of 3.06 and a beta of 1.14.

SLM (NASDAQ:SLM) last released its earnings results on Thursday, January 22nd. The credit services provider reported $1.12 EPS for the quarter, beating the consensus estimate of $0.95 by $0.17. SLM had a return on equity of 34.79% and a net margin of 26.04%.The company had revenue of $1.31 billion during the quarter, compared to analysts’ expectations of $383.43 million. During the same period in the prior year, the business posted $0.50 EPS. SLM has set its FY 2026 guidance at 2.700-2.800 EPS. As a group, equities analysts anticipate that SLM Corporation will post 3.07 EPS for the current year.

SLM Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Thursday, March 5th will be issued a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend is Thursday, March 5th. SLM’s dividend payout ratio (DPR) is currently 14.99%.

Hedge Funds Weigh In On SLM

Several large investors have recently modified their holdings of SLM. Triumph Capital Management acquired a new position in SLM in the third quarter worth about $69,000. Quent Capital LLC acquired a new position in shares of SLM in the 3rd quarter worth approximately $118,000. EverSource Wealth Advisors LLC grew its position in shares of SLM by 118.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,995 shares of the credit services provider’s stock worth $131,000 after acquiring an additional 2,164 shares in the last quarter. GAMMA Investing LLC increased its holdings in shares of SLM by 9.6% in the 4th quarter. GAMMA Investing LLC now owns 7,649 shares of the credit services provider’s stock valued at $207,000 after acquiring an additional 669 shares during the last quarter. Finally, Arkadios Wealth Advisors raised its position in shares of SLM by 11.4% during the 3rd quarter. Arkadios Wealth Advisors now owns 8,315 shares of the credit services provider’s stock valued at $230,000 after acquiring an additional 853 shares in the last quarter. Institutional investors own 98.94% of the company’s stock.

About SLM

SLM Corporation, operating as Sallie Mae Bank, is a leading U.S.-based consumer banking company specializing in education financing and related banking products. The company provides a range of private student loans for undergraduate and graduate studies, Parent PLUS loans, and specialized financing for career and certificate programs. In addition to its core lending services, Sallie Mae offers deposit products including savings accounts, checking accounts, money market accounts, certificates of deposit, and credit cards tailored to students and young adults.

Founded in 1972 as the Student Loan Marketing Association—a government-sponsored enterprise—Sallie Mae was privatized in 2004 and has since focused on expanding its private education loan offerings and digital banking solutions.