SLM (NASDAQ:SLM) Shares Gap Up After Earnings Beat

SLM Corporation (NASDAQ:SLM)’s share price gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $26.70, but opened at $29.32. SLM shares last traded at $28.2210, with a volume of 1,230,658 shares.

The credit services provider reported $1.12 earnings per share for the quarter, beating the consensus estimate of $0.95 by $0.17. The company had revenue of $656.82 million for the quarter, compared to analyst estimates of $383.43 million. SLM had a return on equity of 30.13% and a net margin of 21.76%.During the same quarter in the prior year, the company earned $0.50 earnings per share. SLM has set its FY 2026 guidance at 2.700-2.800 EPS.

SLM Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Thursday, March 5th will be issued a $0.13 dividend. This represents a $0.52 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend is Thursday, March 5th. SLM’s dividend payout ratio is 18.25%.

More SLM News

Here are the key news stories impacting SLM this week:

• Positive Sentiment: Q4 results materially beat expectations — SLM reported $1.12 EPS vs. ~$0.95 consensus and revenue of $656.8M well above estimates; margins and ROE were strong, showing improved profitability. Read More.
• Positive Sentiment: Management authorized a $500M share repurchase program and guided to 12%–14% origination growth for 2026 — both actions are shareholder-accretive and signal confidence in originations growth. Read More.
• Positive Sentiment: Quarterly dividend declared ($0.13/share) — adds a steady cash-return element to SLM’s capital return plan (supports income-oriented investors).
• Neutral Sentiment: Analyst commentary and deep-dive pieces are exploring Q4 metrics and valuation after recent weakness — useful for assessing sustainability of the beat but not immediate catalysts. Read More.
• Negative Sentiment: FY2026 EPS guidance lowered relative to consensus — company set guidance of $2.70–$2.80 vs. Street ~2.84, which could cap upside despite the quarter’s beat.
• Negative Sentiment: Multiple securities class-action filings and numerous law-firm notices target SLM for the July 25–Aug 14, 2025 period — increasing legal risk, potential costs, and management distraction; investors should watch developments and deadlines (Feb. 17 for lead-plaintiff motions). Read More.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the company. Keefe, Bruyette & Woods reduced their target price on SLM from $31.00 to $29.00 and set a “market perform” rating on the stock in a research note on Wednesday, December 10th. Wells Fargo & Company upped their price objective on SLM from $30.00 to $32.00 and gave the company an “overweight” rating in a research report on Friday. JPMorgan Chase & Co. reaffirmed an “underweight” rating and set a $25.00 price objective (down previously from $29.00) on shares of SLM in a research note on Monday, January 12th. TD Cowen reissued a “buy” rating on shares of SLM in a research note on Friday, December 5th. Finally, Weiss Ratings upgraded shares of SLM from a “hold (c)” rating to a “buy (b-)” rating in a report on Saturday, October 25th. Seven equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, SLM has a consensus rating of “Hold” and an average target price of $31.40.

Institutional Investors Weigh In On SLM

Institutional investors have recently bought and sold shares of the stock. Goldman Sachs Group Inc. boosted its position in shares of SLM by 33.4% in the first quarter. Goldman Sachs Group Inc. now owns 547,724 shares of the credit services provider’s stock worth $16,087,000 after buying an additional 137,285 shares during the period. Entropy Technologies LP grew its stake in SLM by 616.6% in the third quarter. Entropy Technologies LP now owns 109,485 shares of the credit services provider’s stock worth $3,031,000 after purchasing an additional 94,207 shares in the last quarter. SG Americas Securities LLC raised its stake in SLM by 139.5% during the fourth quarter. SG Americas Securities LLC now owns 160,272 shares of the credit services provider’s stock valued at $4,337,000 after buying an additional 93,364 shares in the last quarter. MorganRosel Wealth Management LLC bought a new position in SLM during the third quarter worth $1,131,000. Finally, Redmont Wealth Advisors LLC bought a new stake in SLM during the third quarter valued at $951,000. 98.94% of the stock is currently owned by hedge funds and other institutional investors.

SLM Stock Up 5.0%

The stock’s fifty day simple moving average is $27.71 and its two-hundred day simple moving average is $28.98. The company has a debt-to-equity ratio of 3.27, a current ratio of 1.37 and a quick ratio of 1.37. The company has a market capitalization of $5.69 billion, a price-to-earnings ratio of 9.89, a PEG ratio of 1.18 and a beta of 1.12.

SLM Company Profile

SLM Corporation, operating as Sallie Mae Bank, is a leading U.S.-based consumer banking company specializing in education financing and related banking products. The company provides a range of private student loans for undergraduate and graduate studies, Parent PLUS loans, and specialized financing for career and certificate programs. In addition to its core lending services, Sallie Mae offers deposit products including savings accounts, checking accounts, money market accounts, certificates of deposit, and credit cards tailored to students and young adults.

Founded in 1972 as the Student Loan Marketing Association—a government-sponsored enterprise—Sallie Mae was privatized in 2004 and has since focused on expanding its private education loan offerings and digital banking solutions.