Is SLM Corporation (SLM) A Good Investment?

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SLM Corporation (NASDAQ:SLM) finished Wednesday with a subtraction of -$0.17 to close at $15.10, a downside of -1.11 percent. An average of 2,990,820 shares of common stock have been traded in the last five days. There was a gain of $0.02 in the past week, and it reached a new high 17 times over the past 12 months. The last 20 days have seen an average of 2,387,620 shares traded, while the 50-day average volume stands at 2,344,872.

SLM stock has increased by 0.94% in the last month. The company shares reached their 1-month lowest point of $14.35 on 09/01/22. With the stock rallying to its 52-week high on 01/13/22, shares of the company touched a low of $14.35 and a high of $20.88 in 52 weeks. It has reached a new high 8 times so far this year and lost -23.23% or -$4.57 in price. In spite of this, the price is down -27.68% from the 52-week high.


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Insider Transactions

202 days have passed since SLM Corporation (SLM) last reported insider trading activity. Boyles Jonathan, who is SVP & Controller, most recently acquired $6,140 shares at $17.43 per share on Mar 04. In this transaction, the insider spent $107,020. EVP & Chief Financial Officer, McGarry Steven, disposed of 15,016 shares at a price of $19.75 on Feb 28. The insider now owns more than $296,566 worth of shares. Prior to that, EVP & Chief Financial Officer McGarry Steven went on to Sale 22,834 shares at $19.89 each on Feb 25. An amount of $454,212 was transacted.

Valuation Metrics

SLM Corporation (SLM) has a trailing price-to-earnings (P/E) ratio of 5.00. The stock’s beta is 1.17. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.10, the price-to-book (PB) ratio at 2.29, and the price-to-cash flow ratio at 113.10.

The company has a payout ratio of 11.80%. The company’s most recent quarterly dividend payment was $0.11 a share, without any change from last year. Its latest increase dividend $0.08 reported on Wednesday October 20 2021.

Financial Health

Further, the company has a long term debt to equity ratio of 3.02 and a total debt to equity ratio of 3.02 for the quarter ending June 29. Its gross profit as reported stood at $1.39 billion compared to revenue of $1.78 billion.

Earnings Surprise

For the three-month period that ended June 29, SLM Corporation had $5.22 billion in total debt. The analyst consensus anticipated SLM Corporation’s latest quarter earnings to come in at $1.3 per share, but it turned out to be $1.29, a -0.80% surprise. At the end of the quarter ending June 29, SLM Corporation’s stock balance sheet showed total debt was $5.22 billion. Shareholders own equity worth $251.38 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at SLM Corporation (SLM) price momentum. RSI 9-day as of the close on 21 September was 45.61%, suggesting the stock is Neutral, with historical volatility in this time frame at 34.11%.

As of today, SLM’s price is $15.32 +0.13% or $0.02 from its 5-day moving average. SLM is currently trading +0.87% higher than its 20-day SMA and -10.65% lower than its 100-day SMA. However, the stock’s current price level is -3.51% below the SMA50 and -16.44% below the SMA200.

The stochastic %K and %D were 47.92% and 51.39%, respectively, and the average true range (ATR) was 0.52. With the 14-day stochastic at 39.06% and the average true range at 0.53, the RSI (14) stands at 46.41%. The stock has reached -0.10 on the 9-day MACD Oscillator while the 14-day reading was at 0.06.

Analyst Ratings

Stephens downgraded SLM Corporation (NASDAQ: SLM) to a an Equal-weight rating in its most recent analyst report. Previously, the stock was rated as an Overweight. The consensus rating for SLM Corporation (SLM) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell SLM, while 3 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 7 others rate it as a “buy”.

What is SLM’s price target for the next 12 months?

Analysts predict a range of price targets between $16.00 and $24.00, with a median target of $20.00. Taking a look at these predictions, the average price target given by analysts for SLM Corporation (SLM) stock is $19.59.

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