SLM (NASDAQ:SLM) Updates FY 2024 Earnings Guidance

SLM (NASDAQ:SLM) issued an update on its FY 2024 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 2.600-2.700 for the period, compared to the consensus estimate of 2.690. The company issued revenue guidance of -. SLM also updated its FY24 guidance to $2.60-$2.70 EPS.

SLM Stock Performance

SLM traded up $0.17 during trading on Wednesday, hitting $22.10. 2,046,426 shares of the stock were exchanged, compared to its average volume of 2,146,394. The firm has a market capitalization of $4.87 billion, a P/E ratio of 9.21, a PEG ratio of 0.43 and a beta of 1.16. SLM has a 1-year low of $12.26 and a 1-year high of $22.20. The stock has a fifty day moving average price of $20.84 and a two-hundred day moving average price of $18.12. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 3.21.

SLM (NASDAQ:SLM) last released its quarterly earnings results on Wednesday, April 24th. The credit services provider reported $1.27 EPS for the quarter, topping the consensus estimate of $0.98 by $0.29. SLM had a return on equity of 36.86% and a net margin of 20.65%. During the same quarter last year, the business earned $0.47 EPS. As a group, sell-side analysts predict that SLM will post 2.72 earnings per share for the current year.

SLM Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, June 17th. Shareholders of record on Thursday, June 6th will be paid a $0.11 dividend. The ex-dividend date is Thursday, June 6th. This represents a $0.44 annualized dividend and a dividend yield of 1.99%. SLM’s dividend payout ratio (DPR) is currently 18.33%.

SLM declared that its Board of Directors has authorized a stock repurchase plan on Wednesday, January 24th that authorizes the company to repurchase $650.00 million in outstanding shares. This repurchase authorization authorizes the credit services provider to purchase up to 14.5% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its stock is undervalued.

Analyst Ratings Changes

SLM has been the topic of several analyst reports. JPMorgan Chase & Co. lifted their target price on SLM from $20.00 to $22.00 and gave the company a neutral rating in a research note on Wednesday, April 3rd. Wells Fargo & Company lifted their price target on SLM from $22.00 to $24.00 and gave the company an overweight rating in a research note on Thursday, April 18th. TheStreet raised SLM from a c+ rating to a b rating in a report on Wednesday, January 24th. Royal Bank of Canada lifted their price objective on SLM from $21.00 to $22.00 and gave the stock an outperform rating in a report on Thursday, January 25th. 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 MarketBeat.com, the stock currently has a consensus rating of Moderate Buy and a consensus target price of $20.32.

Insider Activity

In related news, EVP Donna F. Vieira sold 12,308 shares of the company’s stock in a transaction dated Tuesday, January 30th. The shares were sold at an average price of $20.27, for a total value of $249,483.16. Following the completion of the sale, the executive vice president now owns 126,500 shares of the company’s stock, valued at $2,564,155. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In other SLM news, SVP Jonathan Boyles sold 94,078 shares of the business’s stock in a transaction dated Thursday, February 29th. The shares were sold at an average price of $20.72, for a total value of $1,949,296.16. Following the sale, the senior vice president now directly owns 52,751 shares in the company, valued at $1,093,000.72. The sale 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 dated Tuesday, January 30th. The stock was sold at an average price of $20.27, for a total value of $249,483.16. Following the sale, the executive vice president now owns 126,500 shares in the company, 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.

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.