In a remarkable display of financial strength, SLM (NASDAQ:SLM) Corporation, commonly known as Sallie Mae, has reached an all-time high, with its stock price soaring to $23.95. This peak represents a significant milestone for the company, which specializes in education financing. Over the past year, SLM has witnessed an impressive surge in its stock value, with a 1-year change showing a robust increase of 59.63%. This growth trajectory underscores investor confidence and the company's solid performance in the competitive financial services sector.
In other recent news, SLM Corp., also known as Sallie Mae, reported mixed results in its Q3 2024 earnings. Despite an unexpected increase in provision expenses causing an earnings per share (EPS) shortfall of $0.23, the company reaffirmed its earnings guidance for the year. BofA Securities maintained a Buy rating on SLM Corp., reflecting confidence in the firm's market position and future performance.
SLM Corp. also reported a notable increase in its third-quarter loan originations, totaling $2.8 billion, surpassing expectations. This success is credited to Sallie Mae's ability to capture market share following the withdrawal of a competitor. Sallie Mae's improved credit quality was evidenced by net charge-offs of $77 million, and the company announced an increase in its quarterly common dividend from $0.11 to $0.13.
In other developments, Sallie Mae revised its 2024 guidance for private education loan origination growth to 8%-9%. The company expects net charge-offs to range between $325 million and $340 million. Despite the challenges, Sallie Mae remains optimistic about its future performance and capital return strategy.
InvestingPro Insights
SLM Corporation's recent stock performance aligns with several key metrics and insights from InvestingPro. The company's stock is currently trading near its 52-week high, with a price that is 99.79% of its peak, reflecting the strong momentum mentioned in the article. This performance is supported by a stellar 1-year price total return of 50.99%, closely matching the 59.63% increase noted in the original text.
InvestingPro Tips highlight that management has been aggressively buying back shares, which often signals confidence in the company's future prospects. Additionally, SLM has been profitable over the last twelve months, with a low P/E ratio of 7.83, suggesting the stock may still be undervalued despite its recent gains.
For investors seeking more comprehensive analysis, InvestingPro offers 6 additional tips that could provide further insight into SLM's financial health and growth potential. These additional tips, along with real-time metrics, can be accessed through the InvestingPro product, offering a deeper understanding of SLM's market position and future outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.