SLM (NASDAQ:SLM) Corporation, commonly known for its Sallie Mae brand, has reached an all-time high, with its stock price soaring to $28.23. This milestone reflects a significant surge in investor confidence, as the company's stock has witnessed an impressive 50.76% increase over the past year. With a market capitalization of nearly $6 billion and a P/E ratio of 9.38, InvestingPro analysis suggests the stock is currently fairly valued. The climb to this record price level underscores the company's robust financial performance, with revenue growth of 46.87% and a "GOOD" financial health score according to InvestingPro. Investors are closely monitoring SLM's trajectory, as it continues to navigate the competitive financial services landscape. InvestingPro has identified 7 additional key investment tips for SLM, available with a subscription.
In other recent news, Sallie Mae reported mixed results in its third-quarter earnings. Despite missing earnings per share estimates and reporting a net loss of $0.23 per share, primarily due to an unexpected increase in provision expenses, the company saw a 13% year-over-year increase in private education loan originations, totaling $2.8 billion. This performance was partly credited to Sallie Mae's ability to capture market share following the withdrawal of a competitor from the market.
Despite the earnings miss, BofA Securities maintained a Buy rating on Sallie Mae, reflecting the firm's positive outlook on the company's market dominance and future performance. The company's credit quality also showed signs of improvement, evidenced by net charge-offs of $77 million.
In other recent developments, Sallie Mae announced an increase in its quarterly common dividend from $0.11 to $0.13, and revised its 2024 guidance for private education loan origination growth to 8%-9%. The company also expects net charge-offs to range between $325 million-$340 million. These developments, along with Sallie Mae's optimism about its future performance and capital return strategy, provide a glimpse into the company's recent activities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.