SLM (NASDAQ:SLM) Sets New 52-Week High After Dividend Announcement

SLM Co. (NASDAQ:SLM)’s stock price hit a new 52-week high during mid-day trading on Tuesday after the company announced a dividend. The stock traded as high as $21.97 and last traded at $21.95, with a volume of 566427 shares. The stock had previously closed at $21.32.

The newly announced 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%. SLM’s payout ratio is currently 18.33%.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on the company. Wells Fargo & Company lifted their price objective on SLM from $22.00 to $24.00 and gave the company an “overweight” rating in a research report on Thursday, April 18th. Deutsche Bank Aktiengesellschaft began coverage on SLM in a report on Wednesday, January 10th. They issued a “buy” rating and a $25.00 price target on the stock. Royal Bank of Canada boosted their price target on SLM from $21.00 to $22.00 and gave the stock an “outperform” rating in a report on Thursday, January 25th. JPMorgan Chase & Co. boosted their price target on SLM from $20.00 to $22.00 and gave the stock a “neutral” rating in a report on Wednesday, April 3rd. Finally, Citigroup raised SLM from a “neutral” rating to a “buy” rating and boosted their price target for the stock from $14.00 to $23.00 in a report on Tuesday, January 16th. Three analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. According to data from MarketBeat.com, SLM presently has a consensus rating of “Moderate Buy” and a consensus target price of $20.32.

SLM Trading Up 2.9 %

The firm has a market cap of $4.83 billion, a P/E ratio of 9.14, a P/E/G ratio of 0.43 and a beta of 1.16. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 3.21. The stock has a 50 day simple moving average of $20.84 and a 200-day simple moving average of $18.12.

SLM (NASDAQ:SLM) last released its earnings results on Tuesday, January 30th. The credit services provider reported $0.72 earnings per share for the quarter, missing the consensus estimate of $0.87 by ($0.15). The company had revenue of $725.66 million for the quarter, compared to the consensus estimate of $379.20 million. SLM had a net margin of 20.65% and a return on equity of 36.86%. During the same period in the prior year, the firm posted ($0.33) EPS. On average, equities research analysts expect that SLM Co. will post 2.72 EPS for the current fiscal year.

SLM declared that its board has authorized a stock buyback plan on Wednesday, January 24th that authorizes the company to buyback $650.00 million in outstanding shares. This buyback authorization authorizes the credit services provider to reacquire up to 14.5% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s board believes its stock is undervalued.

Insider Activity

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 transaction, the senior vice president now owns 52,751 shares of the company’s stock, valued at approximately $1,093,000.72. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. In related news, SVP Jonathan Boyles sold 94,078 shares of the business’s stock in a transaction 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 completion of the transaction, the senior vice president now owns 52,751 shares in the company, valued at approximately $1,093,000.72. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Donna F. Vieira sold 12,308 shares of the business’s stock in a transaction on Tuesday, January 30th. The shares were 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 approximately $2,564,155. The disclosure for this sale can be found here. Corporate insiders own 0.91% of the company’s stock.

Hedge Funds Weigh In On SLM

Large investors have recently bought and sold shares of the business. Hexagon Capital Partners LLC lifted its holdings in shares of SLM by 1,373.3% in the 1st quarter. Hexagon Capital Partners LLC now owns 1,326 shares of the credit services provider’s stock worth $29,000 after buying an additional 1,236 shares during the period. Blue Trust Inc. lifted its holdings in shares of SLM by 81.4% in the 4th quarter. Blue Trust Inc. now owns 1,328 shares of the credit services provider’s stock worth $25,000 after buying an additional 596 shares during the period. Daiwa Securities Group Inc. purchased a new stake in shares of SLM in the 4th quarter worth $29,000. Neo Ivy Capital Management purchased a new stake in shares of SLM in the 4th quarter worth $40,000. Finally, Headlands Technologies LLC lifted its holdings in shares of SLM by 46.4% in the 4th quarter. Headlands Technologies LLC now owns 2,330 shares of the credit services provider’s stock worth $45,000 after buying an additional 739 shares during the period. Hedge funds and other 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.