SLM Corporation (NASDAQ: SLM) stock jumped 1.04% on Friday to $15.53 against a previous-day closing price of $15.37. With 1.8 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.83 million shares. During the session, the Credit Services company that operates in wider Financial sector, reached to the highest price of $15.63 whereas the lowest price it dropped to was $15.26. The 52-week range on SLM shows that it touched its highest point at $20.88 and its lowest point at $14.60 during that stretch. It currently has a 1-year price target of $20.54. With its current market cap of 4.32 billion, SLM has annualized dividend of $0.44 while the current yield stands at 2.83%. Beta for the stock currently stands at 1.22.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SLM was down-trending over the past week, with a drop of -9.97%, but this was down by -4.14% over a month. Three-month performance dropped to -10.08% while six-month performance fell -19.41%. The stock lost -17.96% in the past year, while it has lost -21.05% so far this year. A look at the trailing 12-month EPS for SLM yields 3.02 with Next year EPS estimates of 2.90. For the next quarter, that number is 0.56. This implies an EPS growth rate of 60.60% for this year and 7.54% for next year. EPS is expected to grow by 17.07% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 46.80%.
Float and Shares Shorts:
At present, 261.33 million SLM shares are outstanding with a float of 249.33 million shares on hand for trading. On Jul 14, 2022, short shares totaled 8.12 million, which was 3.02% higher than short shares on Jun 14, 2022. In addition to Mr. Jonathan W. Witter as the firm’s CEO & Director, Mr. Steven J. McGarry serves as its Exec. VP & CFO.
Through their ownership of 111.74% of SLM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 8.67% of SLM, in contrast to 55.50% held by mutual funds. Shares owned by individuals account for 46.21%. As the largest shareholder in SLM with 12.33% of the stake, The Vanguard Group, Inc. holds 33,194,959 shares worth 33,194,959. A second-largest stockholder of SLM, BlackRock Fund Advisors, holds 21,305,219 shares, controlling over 7.91% of the firm’s shares. Impactive Capital LP is the third largest shareholder in SLM, holding 18,430,839 shares or 6.85% stake. With a 3.11% stake in SLM, the MFS Mid Cap Value Fund is the largest stakeholder. A total of 8,372,179 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.95% of SLM stock, is the second-largest Mutual Fund holder. It holds 7,952,681 shares valued at 126.77 million. iShares Core S&P Mid Cap ETF holds 2.88% of the stake in SLM, owning 7,746,958 shares worth 123.49 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SLM since 12 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SLM analysts setting a high price target of $25.00 and a low target of $16.00, the average target price over the next 12 months is $20.21. Based on these targets, SLM could surge 60.98% to reach the target high and rise by 3.03% to reach the target low. Reaching the average price target will result in a growth of 30.14% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SLM will report FY 2022 earnings on 01/25/2023. Analysts have provided yearly estimates in a range of $2.95 being high and $2.50 being low. For SLM, this leads to a yearly average estimate of $2.65. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. SLM Corporation surprised analysts by $0.01 when it reported $1.29 EPS against a consensus estimate of $1.28. The surprise factor in the prior quarter was -$0.35. Based on analyst estimates, the high estimate for the next quarter is $1.00 and the low estimate is $0.38. The average estimate for the next quarter is thus $0.50.
Dividends & Yield:
In terms of dividends, SLM has a current ratio of $0.44, which is $0.44 over the trailing 12-months. Dividend yield is another indicator that appeals to many investors, and SLM currently yields $2.32. In the past year, SLM’s dividend yield has been $2.32. Accordingly, SLM has a current buyback yield of $26.87. This was $26.87 for the TTM.
Summary of Insider Activity:
Insiders traded SLM stock several times over the past three months with 14 Buys and 0 Sells. In these transactions, 84,174 shares were bought while 0 shares were sold. The number of buy transactions has increased to 40 while that of sell transactions has risen to 30 over the past year. The total number of shares bought during that period was 475,057 while 347,220 shares were sold.