SLM (SLM) Stock Rating Lowered by Zacks Investment Research

SLM (NASDAQ:SLM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.

According to Zacks, “Shares of Sallie Mae have underperformed the industry over the past six months. Also, the company doesn’t have an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in one of the trailing four quarters. A competitive business environment and consistently increasing expenses remain near-term concerns. Further, Sallie Mae faces concentration risks due to over dependence on brokered deposits. However, the company’s focus on strengthening its Private Education Loan assets and revenues along with maintaining a strong capital position bode well for the long term. Also, the economic recovery and declining unemployment rate should help it maintain a leading position in the student lending market. Nevertheless, stretched valuation indicates limited upside potential in the stock.”

Several other research firms have also weighed in on SLM. FBR & Co set a $13.00 price objective on SLM and gave the company a “buy” rating in a research note on Thursday, October 19th. BMO Capital Markets reaffirmed a “hold” rating and issued a $12.00 price objective on shares of SLM in a research note on Friday, October 6th. BidaskClub raised SLM from a “strong sell” rating to a “sell” rating in a research note on Thursday, September 28th. Wedbush reaffirmed an “outperform” rating and issued a $14.50 price objective on shares of SLM in a research note on Thursday, September 14th. Finally, Citigroup started coverage on SLM in a research note on Monday, October 16th. They issued a “buy” rating and a $16.00 price objective on the stock. Three equities research analysts have rated the stock with a sell rating, one has given a hold rating and seven have assigned a buy rating to the company. The company has a consensus rating of “Hold” and a consensus target price of $13.44.

SLM (NASDAQ:SLM) traded down $0.38 on Tuesday, reaching $11.35. The company’s stock had a trading volume of 3,583,600 shares, compared to its average volume of 3,145,614. The company has a quick ratio of 1.33, a current ratio of 1.33 and a debt-to-equity ratio of 1.35. The stock has a market cap of $5,066.07, a PE ratio of 17.00 and a beta of 1.33. SLM has a 52 week low of $9.65 and a 52 week high of $13.20.

SLM (NASDAQ:SLM) last posted its quarterly earnings results on Wednesday, October 18th. The credit services provider reported $0.17 EPS for the quarter, meeting the consensus estimate of $0.17. The company had revenue of $282.06 million during the quarter, compared to analysts’ expectations of $282.02 million. SLM had a return on equity of 16.63% and a net margin of 22.95%. The firm’s revenue was up 26.3% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.12 EPS. equities research analysts predict that SLM will post 0.72 EPS for the current year.

In related news, CEO Raymond J. Quinlan sold 200,000 shares of the business’s stock in a transaction that occurred on Friday, December 1st. The stock was sold at an average price of $11.52, for a total transaction of $2,304,000.00. Following the transaction, the chief executive officer now directly owns 1,080,133 shares of the company’s stock, valued at approximately $12,443,132.16. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Jonathan Boyles sold 2,776 shares of the business’s stock in a transaction that occurred on Monday, December 4th. The stock was sold at an average price of $11.65, for a total value of $32,340.40. Following the transaction, the senior vice president now directly owns 173,728 shares in the company, valued at $2,023,931.20. The disclosure for this sale can be found here. Insiders own 0.59% of the company’s stock.

A number of institutional investors have recently added to or reduced their stakes in the stock. Nationwide Fund Advisors lifted its position in SLM by 9.0% during the 2nd quarter. Nationwide Fund Advisors now owns 1,442,598 shares of the credit services provider’s stock worth $16,590,000 after acquiring an additional 119,024 shares in the last quarter. Rhumbline Advisers lifted its position in SLM by 16.9% during the 3rd quarter. Rhumbline Advisers now owns 909,428 shares of the credit services provider’s stock worth $10,431,000 after acquiring an additional 131,348 shares in the last quarter. Chartwell Investment Partners LLC raised its position in shares of SLM by 4.4% in the 3rd quarter. Chartwell Investment Partners LLC now owns 407,916 shares of the credit services provider’s stock valued at $4,678,000 after purchasing an additional 17,010 shares in the last quarter. Mutual of America Capital Management LLC raised its position in shares of SLM by 3.5% in the 2nd quarter. Mutual of America Capital Management LLC now owns 357,472 shares of the credit services provider’s stock valued at $4,111,000 after purchasing an additional 12,017 shares in the last quarter. Finally, Aperio Group LLC raised its position in shares of SLM by 3.9% in the 3rd quarter. Aperio Group LLC now owns 188,045 shares of the credit services provider’s stock valued at $2,157,000 after purchasing an additional 7,129 shares in the last quarter. 99.26% of the stock is currently owned by hedge funds and other institutional investors.

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SLM Company Profile

SLM Corporation (Sallie Mae) is the nation’s saving, planning, and paying for college company. Sallie Mae offers products, which promote personal finance including private education loans, Upromise rewards, scholarship search, college financial planning tools, insurance, and online retail banking.

Analyst Recommendations for SLM (NASDAQ:SLM)

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