Traders Buy Large Volume of Put Options on SLM (NASDAQ:SLM)

SLM Corporation (NASDAQ:SLM) was the recipient of some unusual options trading activity on Tuesday. Traders bought 4,741 put options on the company. This represents an increase of 295% compared to the typical daily volume of 1,200 put options.

SLM Stock Performance

SLM traded down $5.00 during trading on Tuesday, reaching $25.85. 8,998,900 shares of the company were exchanged, compared to its average volume of 2,661,644. SLM has a 52 week low of $23.81 and a 52 week high of $34.97. The company has a current ratio of 1.37, a quick ratio of 1.37 and a debt-to-equity ratio of 3.27. The firm has a 50 day moving average of $27.55 and a 200 day moving average of $30.17. The stock has a market cap of $5.25 billion, a P/E ratio of 9.06, a PEG ratio of 0.73 and a beta of 1.14.

SLM (NASDAQ:SLM) last announced its quarterly earnings results on Monday, February 14th. The credit services provider reported $1.15 earnings per share (EPS) for the quarter. The company had revenue of ($3.44) million during the quarter. SLM had a net margin of 21.76% and a return on equity of 30.13%. SLM has set its FY 2022 guidance at $2.800-$3.000 EPS. On average, sell-side analysts forecast that SLM will post 3.07 EPS for the current fiscal year.

SLM Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, December 15th. Shareholders of record on Thursday, December 4th will be given a $0.13 dividend. The ex-dividend date is Thursday, December 4th. This represents a $0.52 annualized dividend and a yield of 2.0%. SLM’s dividend payout ratio is 18.25%.

Analyst Ratings Changes

Several research firms have recently weighed in on SLM. Weiss Ratings raised shares of SLM from a “hold (c)” rating to a “buy (b-)” rating in a research report on Saturday, October 25th. Royal Bank Of Canada lifted their price target on SLM from $31.00 to $32.00 and gave the stock an “outperform” rating in a research note on Friday, October 24th. TD Cowen boosted their price objective on SLM from $39.00 to $40.00 and gave the company a “buy” rating in a report on Friday. Cowen restated a “buy” rating on shares of SLM in a research note on Friday. Finally, Wells Fargo & Company increased their target price on SLM from $33.00 to $35.00 and gave the stock an “overweight” rating in a report on Friday. Seven analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, SLM presently has an average rating of “Moderate Buy” and an average price target of $31.89.

Institutional Investors Weigh In On SLM

Several large investors have recently made changes to their positions in the company. Amalgamated Bank raised its holdings in shares of SLM by 0.3% during the second quarter. Amalgamated Bank now owns 96,570 shares of the credit services provider’s stock valued at $3,167,000 after buying an additional 326 shares during the last quarter. AlphaQuest LLC increased its position in SLM by 1.1% in the 1st quarter. AlphaQuest LLC now owns 36,509 shares of the credit services provider’s stock valued at $1,072,000 after acquiring an additional 408 shares during the period. Meritage Portfolio Management increased its position in SLM by 2.8% in the 2nd quarter. Meritage Portfolio Management now owns 16,780 shares of the credit services provider’s stock valued at $550,000 after acquiring an additional 464 shares during the period. HighTower Advisors LLC raised its stake in SLM by 1.4% during the 1st quarter. HighTower Advisors LLC now owns 39,364 shares of the credit services provider’s stock valued at $1,156,000 after acquiring an additional 541 shares in the last quarter. Finally, Intech Investment Management LLC boosted its position in SLM by 0.5% during the 1st quarter. Intech Investment Management LLC now owns 116,786 shares of the credit services provider’s stock worth $3,430,000 after acquiring an additional 564 shares during the period. Institutional investors and hedge funds 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.