In a recent transaction, Robert S. Strong, a director at SLM Corp (NASDAQ:SLM), sold 4,500 shares of the company's common stock. The sale was executed at a weighted average price of $22.7177 per share, resulting in a total value of approximately $102,229. The prices at which the shares were sold ranged from $22.51 to $22.77.
According to the details provided in the Form 4 filed with the Securities and Exchange Commission, this stock sale took place on October 1, 2024, and was carried out under a pre-arranged trading plan that Strong had adopted on March 4, 2024. This plan is in accordance with Rule 10b5-1, which allows company insiders to establish predetermined trading arrangements for selling stocks at a time when they are not in possession of material non-public information.
Following the transaction, Strong still holds a significant number of shares in the company, with 92,130.0952 shares remaining in his possession, which also includes Dividend Equivalent Units connected to Restricted Common Stock.
Investors and the public can request detailed information about the specific prices at which the stock was sold within the reported range, as per the footnote in the filing. This level of transparency provides additional insight into the trading activity of company insiders.
SLM Corp, commonly known as Sallie Mae, is a publicly traded consumer banking company that specializes in education financing, particularly student loans. It is headquartered in Newark, Delaware, and its fiscal year ends on December 31.
In other recent news, SLM Corp, popularly known as Sallie Mae, has been the subject of several significant developments. The company reported a slight increase in GAAP diluted EPS to $1.11 per share in the second quarter of 2024, up from $1.10 year-over-year. Additionally, loan originations rose by 6%, totaling $691 million, and credit quality improved.
Analysts from BofA Securities, Wells Fargo, and RBC Capital Markets have expressed optimism about Sallie Mae's prospects. BofA Securities initiated coverage with a Buy rating and a price target of $27, citing Sallie Mae's substantial market share and potential for significant capital returns. Wells Fargo raised its price target from $24 to $27, maintaining an Overweight rating, while RBC Capital Markets also increased its price target to $27, maintaining an Outperform rating.
In other company news, Sallie Mae announced the immediate resignation of Samuel T. Ramsey from its Board of Directors, reducing the board size from twelve to eleven directors. These are among the recent developments in Sallie Mae's operations.
InvestingPro Insights
SLM Corp's recent insider transaction occurs against a backdrop of strong financial performance and market valuation metrics. According to InvestingPro data, the company boasts a market capitalization of $4.78 billion and is trading at a relatively low price-to-earnings (P/E) ratio of 6.78. This low earnings multiple is highlighted as one of the InvestingPro Tips, suggesting that the stock may be undervalued compared to its earnings potential.
The company's financial health appears robust, with a revenue of $1.68 billion over the last twelve months as of Q2 2024, and an impressive operating income margin of 58.94% for the same period. These figures underscore SLM Corp's profitability, which aligns with another InvestingPro Tip indicating that the company has been profitable over the last twelve months.
Investors may find it particularly interesting that SLM Corp has demonstrated a strong return over the past year, with a one-year price total return of 66.3%. This performance is complemented by a dividend yield of 2.0%, offering shareholders a combination of capital appreciation and income.
Looking ahead, analysts predict that SLM Corp will remain profitable this year, as noted in one of the InvestingPro Tips. This positive outlook, coupled with the company's current valuation and performance metrics, provides context for the insider transaction reported in the article.
For readers seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for SLM Corp, which could provide further insights into the company's financial position and future prospects.
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