Zacks: Analysts Expect SLM Co. (NASDAQ: SLM) to Report Earnings of $1.02 Per Share
Equity research analysts expect SLM Co. (NASDAQ:SLM – Get a rating) to show earnings of $1.02 per share for the current quarter, Zacks Investment Research reports. Two analysts provided earnings estimates for SLM, with the highest EPS estimate of $1.47 and the lowest estimate of $0.51. SLM reported earnings per share of $0.45 in the same quarter last year, suggesting a positive year-over-year growth rate of 126.7%. The company is due to release its next results on Monday, January 1.
According to Zacks, analysts expect SLM to report annual earnings of $2.93 per share for the current fiscal year, with EPS estimates ranging from $2.82 to $3.01. For next year, analysts expect the company to post earnings of $3.17 per share, with EPS estimates ranging from $3.12 to $3.20. Zacks EPS averages are an average based on a survey of research analysts who track SLM.
SLM (NASDAQ:SLM – Get a rating) last released its quarterly results on Wednesday, April 27. The credit service provider reported earnings per share of $0.46 for the quarter, missing the consensus estimate of $0.81 per ($0.35). The company posted revenue of $375.03 million for the quarter, versus a consensus estimate of $375.59 million. SLM had a return on equity of 34.38% and a net margin of 31.67%. The company’s revenue increased by 13.3% compared to the same quarter last year. In the same quarter a year earlier, the company posted EPS of $1.77.
Several research analysts have recently weighed in on SLM shares. Barclays raised its price target on SLM from $25.00 to $27.00 in a Monday, January 10 research note. Citigroup reduced its target price on SLM from $26.00 to $21.00 in a research note on Monday. Wedbush rephrased an “outperform” rating on SLM shares in a Monday, Jan. 31, research note. Stephens downgraded SLM from an “overweight” rating to an “equal weight” rating and reduced its target price for the stock from $24.00 to $19.00 in a Monday, April 18 research note. To finish, StockNews.com launched coverage on SLM in a research note on Thursday, March 31. They issued a “hold” rating for the company. Two analysts gave the stock a hold rating, four gave the stock a buy rating and one gave the company’s stock a strong buy rating. According to data from MarketBeat, SLM currently has a consensus rating of “Buy” and a consensus price target of $22.93.
Separately, Chief Financial Officer Steven Mcgarry sold 15,016 shares of the company in a transaction dated Monday, February 28. The stock was sold at an average price of $19.75, for a total transaction of $296,566.00. The sale was disclosed in a legal filing with the SEC, which is available via this link. Additionally, SVP Jonathan Boyles sold 6,140 shares of SLM in a trade that took place on Friday, March 4. The stock was sold at an average price of $17.43, for a total value of $107,020.20. Disclosure of this sale can be found here. During the last quarter, insiders sold 43,990 shares of the company valued at $857,754. Company insiders hold 0.51% of the company’s shares.
Institutional investors have recently changed their positions in the company. First Trust Advisors LP increased its stake in SLM shares by 3.2% during the first quarter. First Trust Advisors LP now owns 496,117 shares of the credit services provider valued at $4,917,000 after purchasing an additional 15,153 shares during the period. Amundi Pioneer Asset Management Inc. increased its stake in SLM shares by 49.1% during the first quarter. Amundi Pioneer Asset Management Inc. now owns 169,597 shares of the credit services provider valued at $1,680,000 after purchasing an additional 55,858 shares during the period. Morgan Stanley increased its stake in SLM shares by 5.8% during the second quarter. Morgan Stanley now owns 1,796,576 shares of the credit service provider valued at $37,619,000 after purchasing an additional 97,743 shares during the period. Deutsche Bank AG increased its stake in SLM shares by 122.5% during the third quarter. Deutsche Bank AG now owns 1,096,247 shares of the credit services provider valued at $19,294,000 after purchasing an additional 603,595 shares during the period. Finally, Advisor Group Holdings Inc. increased its stake in SLM shares by 4.4% during the third quarter. Advisor Group Holdings Inc. now owns 124,606 shares of the credit services provider valued at $2,194,000 after purchasing an additional 5,244 shares during the period. 92.97% of the shares are currently held by institutional investors and hedge funds.
Shares of SLM were down $0.28 on Friday, hitting $17.03. 141,172 shares were traded, against an average volume of 2,298,510. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt ratio of 3.10. The company has a market capitalization of $4.58 billion, a PE ratio of 7.86 and a beta of 1.22. SLM has a one-year low of $16.07 and a one-year high of $21.40. The company’s 50-day moving average is $17.64 and its two-hundred-day moving average is $18.48.
The company also recently declared a quarterly dividend, which will be paid on Wednesday, June 15. Shareholders of record on Friday, June 3 will receive a dividend of $0.11 per share. The ex-dividend date is Thursday, June 2. This represents a dividend of $0.44 on an annualized basis and a dividend yield of 2.58%. SLM’s dividend payout ratio (DPR) is currently 20.28%.
SLM announced that its board of directors launched a stock repurchase plan on Wednesday, January 26 that sees the company repurchase $1.25 billion worth of stock. This repurchase authorization allows the credit service provider to repurchase up to 24.9% of its shares through purchases on the open market. Stock buyback plans are usually an indication that the company’s management believes its stock is undervalued.
About SLM (Get a rating)
SLM Corporation, through its subsidiaries, originates and administers private education loans to students and their families to finance the cost of their education in the United States. It also offers retail deposit accounts, including certificates of deposit, money market deposit accounts and high yield savings accounts; and omnibus accounts, as well as credit card loans.
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