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.