SLM Corporation (SLM) – The 23.6% Upside Potential Remains

SLM Corporation (NASDAQ: SLM) is -14.25% lower on its value in year-to-date trading and has touched a low of $5.60 and a high of $12.32 in the current 52-week trading range. The SLM stock was last observed hovering at around $7.78 in the last trading session, with the day’s loss setting it -0.14% off its average median price target of $10.00 for the next 12 months. It is also 36.33% off the consensus price target high of $12.00 offered by 11 analysts, but current levels are -1.87% lower than the price target low of $7.50 for the same period.

Currently trading at $7.64, the stock is 5.71% and 8.01% above its SMA20 and SMA50 respectively. However, with a daily trading volume of 8.84 million and changing -1.80% at the moment leaves the stock -7.66% off its SMA200. SLM registered -9.48% loss for a year compared to 6-month loss of -25.83%. The firm has a 50-day simple moving average (SMA 50) of $7.09 and a 200-day simple moving average (SMA200) of $7.79.

The stock witnessed a 12.85% gain in the last 1 month and extending the period to 3 months gives it a 0.26%, and is 2.83% up over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 3.01% over the week and 2.91% over the month.

SLM Corporation (SLM) has around 1900 employees, a market worth around $2.78B and $2.49B in sales. Current P/E ratio is 6.11 and Fwd P/E is 5.32. Profit margin for the company is 21.40%. Distance from 52-week low is 36.43% and -37.99% from its 52-week high. The company has generated returns on investments over the last 12 months (1.70%).

SLM Corporation (SLM) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for SLM Corporation (SLM) is a “Overweight”. 11 analysts offering their recommendations for the stock have an average rating of 1.90, where 3 rate it as a Hold and 0 think it is a “Overweight”. 8 of the analysts rate the stock as a “Buy”. 0 analysts have rated the stock as a Sell or Underperform.

SLM Corporation is expected to release its quarterly report on 10/21/2020 and quarterly earnings per share for the current quarter are estimated at $0.08 with sales reaching $359.21M over the same period.The EPS is expected to grow by 40.50% this year, but quarterly earnings will post -8.90% year-over-year. Quarterly sales are estimated to shrink -11.30% in year-over-year returns.

SLM Corporation (SLM) Top Institutional Holders

416 institutions hold shares in SLM Corporation (SLM), with 3.14M shares held by insiders accounting for 0.84% while institutional investors hold 112.74% of the company’s shares. The shares outstanding are 375.01M, and float is at 371.92M with Short Float at 6.99%. Institutions hold 111.80% of the Float.

The top institutional shareholder in the company is Vanguard Group, Inc. (The) with over 35.78 million shares valued at $251.53 million. The investor’s holdings represent 9.54% of the SLM Shares outstanding. As of Jun 29, 2020, the second largest holder is Blackrock Inc. with 32.32 million shares valued at $227.18 million to account for 8.61% of the shares outstanding. The other top investors are ValueAct Holdings, L.P. which holds 32.29 million shares representing 8.61% and valued at over $227.03 million, while Price (T.Rowe) Associates Inc holds 6.08% of the shares totaling 22.82 million with a market value of $160.39 million.

SLM Corporation (SLM) Insider Activity

A total of 13 insider transactions have happened at SLM Corporation (SLM) in the last six months, with sales accounting for 0 and purchases happening 13 times. The most recent transaction is an insider sale by GOODE EARL A, the company’s Director. SEC filings show that GOODE EARL A sold 7,323 shares of the company’s common stock on Jan 27 at a price of $11.24 per share for a total of $82280.0. Following the sale, the insider now owns 0.13 million shares.

SLM Corporation (SLM): Who are the competitors?

The company’s main competitors (and peers) include World Acceptance Corporation (WRLD) that is trading -31.53% down over the past 12 months. Navient Corporation (NAVI) is -28.65% down on the 1-year trading charts. Short interest in the company’s stock has fallen -5.42% from the last report on Jul 14, 2020 to stand at a total of 27.41 million short shares sold with a short interest ratio of 5.63.