SLM (NASDAQ:SLM) Shares Gap Down Following Weak Earnings

SLM Co. (NASDAQ:SLM - Get Free Report)'s stock price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $22.80, but opened at $21.83. SLM shares last traded at $22.14, with a volume of 678,098 shares traded.

The credit services provider reported ($0.23) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.07 by ($0.30). SLM had a return on equity of 41.84% and a net margin of 24.67%. During the same period in the previous year, the firm posted $0.11 earnings per share.

Analyst Ratings Changes

Several research analysts have issued reports on the company. Barclays cut their price objective on SLM from $27.00 to $26.00 and set an "overweight" rating for the company in a research report on Thursday. Bank of America started coverage on SLM in a report on Wednesday, September 25th. They issued a "buy" rating and a $27.00 target price on the stock. Wells Fargo & Company upped their target price on SLM from $24.00 to $27.00 and gave the company an "overweight" rating in a report on Friday, July 26th. Wedbush reissued an "outperform" rating and issued a $26.00 target price on shares of SLM in a report on Thursday. Finally, Keefe, Bruyette & Woods upped their target price on SLM from $25.00 to $27.00 and gave the company an "outperform" rating in a report on Thursday, July 25th. Two equities research analysts have rated the stock with a hold rating and ten have given a buy rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $24.67.

Insider Activity at SLM

In related news, Director Robert S. Strong sold 4,500 shares of the stock in a transaction on Thursday, August 1st. The stock was sold at an average price of $22.70, for a total transaction of $102,150.00. Following the sale, the director now owns 101,093 shares of the company's stock, valued at $2,294,811.10. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 1.20% of the company's stock.

Institutional Trading of SLM

A number of hedge funds have recently added to or reduced their stakes in SLM. Hexagon Capital Partners LLC boosted its stake in SLM by 1,373.3% in the 1st quarter. Hexagon Capital Partners LLC now owns 1,326 shares of the credit services provider's stock worth $29,000 after buying an additional 1,236 shares during the last quarter. Waldron Private Wealth LLC purchased a new position in shares of SLM in the 3rd quarter worth about $31,000. Blue Trust Inc. raised its holdings in shares of SLM by 358.7% in the 3rd quarter. Blue Trust Inc. now owns 1,399 shares of the credit services provider's stock worth $32,000 after purchasing an additional 1,094 shares during the period. International Assets Investment Management LLC purchased a new position in shares of SLM in the 2nd quarter worth about $60,000. Finally, Covestor Ltd raised its holdings in shares of SLM by 378.1% in the 1st quarter. Covestor Ltd now owns 3,050 shares of the credit services provider's stock worth $66,000 after purchasing an additional 2,412 shares during the period. 98.94% of the stock is owned by institutional investors and hedge funds.

SLM Trading Down 2.6 %

The business has a fifty day moving average price of $21.90 and a 200 day moving average price of $21.49. The company has a market capitalization of $4.88 billion, a PE ratio of 6.94, a P/E/G ratio of 0.60 and a beta of 1.15. The company has a debt-to-equity ratio of 2.66, a quick ratio of 1.26 and a current ratio of 1.26.

SLM Company Profile

SLM Corporation, through its subsidiaries, originates and services private education loans to students and their families to finance the cost of their education in the United States. It is also involved in the provision of retail deposit accounts, including certificates of deposit, money market accounts, and high-yield savings accounts; and interest-bearing omnibus accounts.