Royal Bank of Canada Raises SLM (NASDAQ:SLM) Price Target to $25.00

SLM (NASDAQ:SLM) had its target price lifted by Royal Bank of Canada from $24.00 to $25.00 in a research report report published on Thursday morning, Benzinga reports. The brokerage currently has an outperform rating on the credit services provider’s stock.

Several other analysts also recently weighed in on SLM. Wells Fargo & Company upped their price target on SLM from $22.00 to $24.00 and gave the stock an overweight rating in a research note on Thursday, April 18th. Wedbush upped their price target on SLM from $26.00 to $28.00 and gave the stock an outperform rating in a research note on Thursday. JPMorgan Chase & Co. upped their price target on SLM from $22.00 to $23.00 and gave the stock a neutral rating in a research note on Thursday. Deutsche Bank Aktiengesellschaft assumed coverage on SLM in a research note on Wednesday, January 10th. They set a buy rating and a $25.00 target price on the stock. Finally, TheStreet upgraded SLM from a c+ rating to a b rating in a research note on Wednesday, January 24th. Three analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. According to MarketBeat, the stock currently has an average rating of Moderate Buy and an average price target of $21.32.

SLM Stock Performance

SLM stock opened at $21.90 on Thursday. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 2.67. The company has a market capitalization of $4.82 billion, a P/E ratio of 6.84, a PEG ratio of 0.45 and a beta of 1.16. The stock’s 50 day moving average is $20.94 and its 200 day moving average is $18.27. SLM has a twelve month low of $12.26 and a twelve month high of $22.37.

SLM (NASDAQ:SLM) last posted its quarterly earnings results on Wednesday, April 24th. The credit services provider reported $1.27 earnings per share for the quarter, topping the consensus estimate of $1.09 by $0.18. The company had revenue of $837.72 million for the quarter, compared to the consensus estimate of $376.43 million. SLM had a return on equity of 45.65% and a net margin of 25.15%. During the same quarter in the prior year, the business posted $0.47 EPS. On average, equities research analysts predict that SLM will post 2.71 earnings per share for the current fiscal year.

SLM Announces Dividend

The firm 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 dividend of $0.11 per share. The ex-dividend date of this dividend is Wednesday, June 5th. This represents a $0.44 annualized dividend and a yield of 2.01%. SLM’s dividend payout ratio is 13.75%.

SLM declared that its board has initiated a share buyback program on Wednesday, January 24th that permits the company to repurchase $650.00 million in outstanding shares. This repurchase authorization permits the credit services provider to purchase up to 14.5% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board of directors believes its stock is undervalued.

Insider Transactions at SLM

In other news, SVP Jonathan Boyles sold 94,078 shares of the firm’s stock in a transaction on Thursday, February 29th. The stock was sold at an average price of $20.72, for a total value of $1,949,296.16. Following the transaction, the senior vice president now directly 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 accessible through this link. In other news, EVP Donna F. Vieira sold 12,308 shares of the firm’s stock in a transaction on Tuesday, January 30th. The stock was sold at an average price of $20.27, for a total value of $249,483.16. Following the transaction, the executive vice president now directly owns 126,500 shares in the company, valued at approximately $2,564,155. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, SVP Jonathan Boyles sold 94,078 shares of the firm’s stock in a transaction on Thursday, February 29th. The stock was sold at an average price of $20.72, for a total value 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 $1,093,000.72. The disclosure for this sale can be found here. Company insiders own 0.91% of the company’s stock.

Hedge Funds Weigh In On SLM

Institutional investors and hedge funds have recently modified their holdings of the company. Blue Trust Inc. raised its holdings in 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 purchasing an additional 596 shares during the period. Daiwa Securities Group Inc. bought a new position in SLM in the 4th quarter worth $29,000. Hexagon Capital Partners LLC raised its holdings in 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 purchasing an additional 1,236 shares during the period. SYSTM Wealth Solutions LLC raised its holdings in SLM by 37.0% in the 1st quarter. SYSTM Wealth Solutions LLC now owns 1,828 shares of the credit services provider’s stock worth $40,000 after purchasing an additional 494 shares during the period. Finally, Neo Ivy Capital Management bought a new position in SLM in the 4th quarter worth $40,000. 98.94% of the stock is currently owned by hedge funds and other institutional investors.

SLM Company Profile

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.