Royal Bank Of Canada Has Lowered Expectations for SLM (NASDAQ:SLM) Stock Price

SLM (NASDAQ:SLM) had its target price cut by investment analysts at Royal Bank Of Canada from $28.00 to $26.00 in a research report issued on Friday, Benzinga reports. The brokerage presently has an “outperform” rating on the credit services provider’s stock. Royal Bank Of Canada‘s target price suggests a potential upside of 31.61% from the stock’s current price.

Several other equities research analysts have also recently issued reports on the company. Morgan Stanley lifted their target price on SLM from $27.00 to $28.00 and gave the stock an “equal weight” rating in a report on Monday, July 20th. TD Cowen dropped their price target on SLM from $32.00 to $27.00 and set a “buy” rating for the company in a research note on Friday. Barclays cut their price target on SLM from $26.00 to $22.00 and set an “equal weight” rating for the company in a report on Friday. Wells Fargo & Company reduced their price objective on SLM from $28.00 to $24.00 and set an “overweight” rating on the stock in a research note on Friday. Finally, Wall Street Zen downgraded SLM from a “hold” rating to a “sell” rating in a research note on Saturday, July 25th. Four research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, SLM currently has a consensus rating of “Hold” and an average target price of $26.67.

SLM Price Performance

NASDAQ SLM traded down $2.00 on Friday, reaching $19.76. The company had a trading volume of 3,573,950 shares, compared to its average volume of 3,045,785. The stock has a market capitalization of $3.71 billion, a PE ratio of 5.50, a price-to-earnings-growth ratio of 1.56 and a beta of 0.96. SLM has a 12 month low of $17.77 and a 12 month high of $31.06. The company has a quick ratio of 1.32, a current ratio of 1.33 and a debt-to-equity ratio of 2.63. The firm’s 50 day moving average price is $24.63 and its 200 day moving average price is $24.03.

SLM (NASDAQ:SLM) last released its quarterly earnings data on Thursday, October 22nd. The credit services provider reported ($0.19) EPS for the quarter, missing the consensus estimate of $0.17 by ($0.36). SLM had a net margin of 26.09% and a return on equity of 33.81%. The company had revenue of $375.47 million for the quarter, compared to the consensus estimate of $453.34 million. During the same period last year, the company earned $0.63 EPS. The firm’s revenue for the quarter was down 31.3% on a year-over-year basis. As a group, equities analysts predict that SLM will post 3.12 earnings per share for the current year.

Institutional Investors Weigh In On SLM

Several institutional investors have recently made changes to their positions in the company. Root Financial Partners LLC purchased a new position in shares of SLM during the 3rd quarter worth about $28,000. Versant Capital Management Inc grew its holdings in SLM by 48.7% during the 3rd quarter. Versant Capital Management Inc now owns 2,016 shares of the credit services provider’s stock valued at $46,000 after purchasing an additional 660 shares during the last quarter. Allworth Financial LP purchased a new stake in SLM in the 2nd quarter worth about $55,000. EverSource Wealth Advisors LLC raised its position in SLM by 19.4% in the 1st quarter. EverSource Wealth Advisors LLC now owns 3,081 shares of the credit services provider’s stock worth $66,000 after purchasing an additional 501 shares during the period. Finally, Nykredit A S purchased a new stake in SLM in the 2nd quarter worth about $77,000. Institutional investors own 98.94% of the company’s stock.

Trending Headlines about SLM

Here are the key news stories impacting SLM this week:

• Positive Sentiment: Private education loan originations increased 15% year over year to $3.4 billion, while graduate-loan originations rose 119%. SLM also repurchased 5.1 million shares for $132.2 million, supporting per-share value over the longer term. Sallie Mae Reports $32.3 Million Third-Quarter Loss as Originations Rise 15%
• Positive Sentiment: Sixth Street committed to purchase $1.5 billion of student loans annually, potentially providing SLM with a recurring source of loan-sale liquidity and balance-sheet flexibility. The company also announced a fourth-quarter dividend payable December 15. SLM: 3 Key Takeaways for Long-Term Investors
• Negative Sentiment: SLM reported a third-quarter net loss of $32.3 million, or $0.19 per share, compared with earnings of $0.63 per share a year earlier. Revenue fell 31.3% year over year to approximately $375.5 million, below the roughly $453.3 million analyst expectation. Sallie Mae Swings To Q3 Loss
• Negative Sentiment: The company cut fiscal 2026 EPS guidance to $1.95-$2.05 from $3.10-$3.20, well below the $3.12 consensus estimate. Third-quarter net charge-offs reached $90 million, provisions for credit losses totaled $213.7 million, and delinquencies were 4.2% of loans in repayment, highlighting worsening credit performance. Sallie Mae Cuts Full-Year View After Logging Higher Charge-Offs

SLM Company Profile

SLM Corp., commonly known as Sallie Mae, is a financial services company focused on helping students and families finance higher education. Its primary business is the origination and servicing of private education loans, which can help cover tuition, fees, books, housing and other eligible education-related expenses not fully covered by federal student aid.

The company offers private student loans for undergraduate and graduate education, as well as loans for career-training programs and other education needs.