SLM (NASDAQ:SLM) Sees Strong Trading Volume Following Analyst Upgrade

SLM Co. (NASDAQ:SLM) saw strong trading volume on Wednesday after JPMorgan Chase & Co. raised their price target on the stock from $27.00 to $29.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. 1,507,940 shares traded hands during trading, a decline of 35% from the previous session’s volume of 2,321,615 shares.The stock last traded at $28.07 and had previously closed at $27.63.

A number of other equities analysts also recently issued reports on the stock. Keefe, Bruyette & Woods reiterated a “market perform” rating and set a $30.00 price objective (up from $27.00) on shares of SLM in a research note 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. Bank of America began 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 boosted their price target on shares of SLM from $26.00 to $32.00 and gave the stock an “overweight” rating in a research report on Thursday, December 19th. Finally, Royal Bank of Canada reiterated an “outperform” rating and issued a $26.00 price objective on shares of SLM in a report on Thursday, October 24th. Two equities research analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $27.45.

Insider Activity

In other SLM news, Director Robert S. Strong sold 4,500 shares of the firm’s stock in a transaction 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 completion of the transaction, 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 1.20% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Empowered Funds LLC boosted its holdings in SLM by 4.8% in the 3rd quarter. Empowered Funds LLC now owns 11,594 shares of the credit services provider’s stock worth $265,000 after acquiring an additional 526 shares during the period. Wealth Enhancement Advisory Services LLC lifted its stake in shares of SLM by 1.7% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 33,825 shares of the credit services provider’s stock worth $933,000 after acquiring an additional 552 shares in the last quarter. GAMMA Investing LLC increased its stake in shares of SLM by 13.3% in the third quarter. GAMMA Investing LLC now owns 5,077 shares of the credit services provider’s stock worth $116,000 after buying an additional 594 shares during the last quarter. Creative Planning lifted its stake in SLM by 5.3% during the third quarter. Creative Planning now owns 18,708 shares of the credit services provider’s stock worth $428,000 after purchasing an additional 942 shares during the last quarter. Finally, US Bancorp DE lifted its position in shares of SLM by 12.3% in the 3rd quarter. US Bancorp DE now owns 9,368 shares of the credit services provider’s stock worth $214,000 after buying an additional 1,029 shares during the last quarter. 98.94% of the stock is owned by institutional investors and hedge funds.

SLM Price Performance

The company has a debt-to-equity ratio of 3.21, a quick ratio of 1.27 and a current ratio of 1.29. The company’s fifty day moving average price is $26.43 and its 200 day moving average price is $23.44. The firm has a market capitalization of $5.96 billion, a price-to-earnings ratio of 9.78, a price-to-earnings-growth ratio of 0.85 and a beta of 1.21.

SLM (NASDAQ:SLM) last posted its earnings results on Wednesday, October 23rd. The credit services provider reported ($0.23) EPS for the quarter, missing the consensus estimate of $0.07 by ($0.30). The company 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 period last year, the company posted $0.11 earnings per share. Equities research analysts expect that SLM Co. will post 2.73 earnings per share for the current year.

SLM Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, December 16th. Shareholders of record on Thursday, December 5th were paid a dividend of $0.13 per share. 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. The ex-dividend date was Thursday, December 5th. SLM’s payout ratio is presently 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.