Trade Report: Today, SLM Corp. (SLM) Earns Buy Rating from Barclays PLC

Today, SLM Corp. (SLM) Earns Buy Rating from Barclays PLC

Barclays PLC reiterated their buy rating on shares of SLM Corp. (NASDAQ:SLM) in a research report report published on Monday. They currently have a $12.00 price target on the stock.

“We hosted two days of investor meetings with SLM. Overall, we came away with a reinforced view on the long-term growth prospects of the stock. If anything, we are probably more bullish now. Prior to the election, SLM was already a robust growth story, but had some warranted legislative risks. Now those risks, at a minimum, are off the table in our view. And instead, we think the legislative/regulatory landscape has become more supportive to private student lending and could actually create catalysts. SLM could benefit from any one or a combination of potential catalysts that include, lower corporate taxes, reduction in Federal student lending, and a much less likely revival of the FFELP program in some form. While the stock has rallied +34% (vs. +2% SPX) since 11/9, SLM trades at ~14x 2017 EPS, and still at a discount to the broader SMIDcap bank group (~17x) and also a discount to our DCF- driven PT of $12 (up from $11, reflecting a lower discount rate). Ultimately, we think that none of these catalysts are fully priced in, so owning SLM here provides a free call option on EPS upside from these potential catalysts, in our view.”,” the firm’s analyst commented.

A number of other equities analysts have also recently weighed in on SLM. Goldman Sachs Group Inc. reiterated a buy rating and set a $9.00 price target on shares of SLM Corp. in a report on Wednesday, August 10th. TheStreet upgraded SLM Corp. from a hold rating to a buy rating in a report on Monday, August 1st. Finally, Zacks Investment Research upgraded SLM Corp. from a hold rating to a buy rating and set a $8.00 price target for the company in a report on Monday, July 25th. One analyst has rated the stock with a hold rating, seven have issued a buy rating and two have issued a strong buy rating to the stock. The stock currently has a consensus rating of Buy and an average price target of $9.27.

SLM Corp. (NASDAQ:SLM) opened at 9.80 on Monday. SLM Corp. has a 1-year low of $5.09 and a 1-year high of $9.83. The stock has a market cap of $4.20 billion, a price-to-earnings ratio of 16.90 and a beta of 1.11. The firm has a 50-day moving average price of $7.84 and a 200 day moving average price of $7.16.

SLM Corp. (NASDAQ:SLM) last issued its earnings results on Wednesday, October 19th. The company reported $0.12 earnings per share (EPS) for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.12. The company earned $223 million during the quarter, compared to analysts’ expectations of $931.19 million. SLM Corp. had a return on equity of 16.80% and a net margin of 23.86%. The firm’s quarterly revenue was up 27.4% on a year-over-year basis. During the same period in the prior year, the business earned $0.09 EPS. On average, equities research analysts anticipate that SLM Corp. will post $0.52 EPS for the current fiscal year.

In other news, Director Marianne M. Keler bought 10,000 shares of the firm’s stock in a transaction that occurred on Friday, October 28th. The shares were purchased at an average price of $7.12 per share, with a total value of $71,200.00. Following the purchase, the director now owns 59,901 shares in the company, valued at $426,495.12. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 0.98% of the company’s stock.

A number of large investors have recently bought and sold shares of the stock. Bank of New York Mellon Corp raised its stake in SLM Corp. by 11.6% in the second quarter. Bank of New York Mellon Corp now owns 44,688,632 shares of the company’s stock worth $276,176,000 after buying an additional 4,659,355 shares in the last quarter. Boston Partners raised its stake in SLM Corp. by 5.0% in the third quarter. Boston Partners now owns 23,037,299 shares of the company’s stock worth $172,089,000 after buying an additional 1,086,962 shares in the last quarter. Vanguard Group Inc. raised its stake in SLM Corp. by 2.8% in the second quarter. Vanguard Group Inc. now owns 21,720,168 shares of the company’s stock worth $134,231,000 after buying an additional 595,368 shares in the last quarter. BlackRock Fund Advisors raised its stake in SLM Corp. by 4.9% in the third quarter. BlackRock Fund Advisors now owns 16,003,993 shares of the company’s stock worth $119,550,000 after buying an additional 744,508 shares in the last quarter. Finally, BlackRock Advisors LLC raised its stake in SLM Corp. by 1.2% in the third quarter. BlackRock Advisors LLC now owns 15,862,109 shares of the company’s stock worth $118,490,000 after buying an additional 188,440 shares in the last quarter. 99.15% of the stock is currently owned by institutional investors.

About SLM Corp.

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