SLM Stock Soars to All-Time High of $28.75 Amid Strong Growth

Published 06/01/2025, 15:44
SLM Stock Soars to All-Time High of $28.75 Amid Strong Growth

In a remarkable display of market confidence, SLM (NASDAQ:SLM) Corporation's stock has surged to an all-time high, reaching a peak of $28.75. With a market capitalization of $6.05 billion and a P/E ratio of 9.52, InvestingPro analysis indicates the stock is currently fairly valued. This milestone underscores the company's robust performance over the past year, which is reflected in an impressive 54.27% increase in its stock value. Investors have shown their optimism in the firm's strategic direction and growth prospects, propelling the stock to new heights and outpacing many of its competitors. According to InvestingPro, analyst targets range from $26 to $34, with the company maintaining a GOOD financial health score. The 52-week high serves as a testament to SLM Corporation's strong financial health and the positive sentiment surrounding its future potential in the market. InvestingPro subscribers can access 6 additional key insights and a comprehensive Pro Research Report that provides deep-dive analysis of SLM Corporation's performance and prospects.

In other recent news, Sallie Mae reported mixed results for Q3 2024, with an unexpected earnings per share (EPS) shortfall of $0.23, primarily due to an unforeseen increase in provision expenses. Despite this, the company reaffirmed its earnings guidance for the year, signaling confidence in its financial outlook. In the same quarter, Sallie Mae reported a 13% year-over-year increase in private education loan originations, totaling $2.8 billion, surpassing expectations.

BofA Securities maintained a Buy rating on Sallie Mae, undeterred by the earnings miss. The firm's confidence is rooted in Sallie Mae's strong market position and the potential for continued growth, particularly with the withdrawal of a competitor from the market. This strategic advantage is expected to boost loan volumes in the first quarter of 2025.

Among other recent developments, Sallie Mae announced an increase in its quarterly common dividend from $0.11 to $0.13. The company also revised its 2024 guidance for private education loan origination growth to 8%-9% and expects net charge-offs to range between $325 million-$340 million. These updates underscore Sallie Mae's optimistic outlook for its future performance and capital return strategy.

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