SLM Stock Soars to All-Time High of $28.93 Amid Strong Growth

Published 22/01/2025, 15:36
SLM Stock Soars to All-Time High of $28.93 Amid Strong Growth

In a remarkable display of market confidence, shares of SLM (NASDAQ:SLM) Corporation, commonly known as Sallie Mae, have surged to an all-time high, reaching a peak of $28.93. According to InvestingPro data, the company's market capitalization now stands at $6.14 billion, with the stock trading at an attractive P/E ratio of 9.7x. This milestone underscores a period of significant growth for the company, which specializes in education financing. Over the past year, SLM's stock has witnessed an impressive ascent, with a 1-year return of 50.88%, backed by remarkable revenue growth of 46.87%. InvestingPro analysis reveals a GOOD overall financial health score, with 7 additional ProTips available for subscribers. Investors have responded positively to the company's strategic initiatives and strong financial performance, propelling the stock to new heights and setting a new benchmark for its market valuation. For comprehensive insights, access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Sallie Mae, despite reporting a third-quarter earnings per share (EPS) of ($0.23) that fell short of estimates, maintains a positive financial outlook. Despite the earnings miss, the company's loan originations totaled $2.8 billion, surpassing expectations. This performance is largely credited to Sallie Mae's ability to capture market share following the withdrawal of a competitor. BofA Securities reaffirmed its Buy rating on Sallie Mae, valuing the company's market position and future performance.

Moreover, Sallie Mae reported a 13% year-over-year increase in private education loan originations. However, the company also faced a GAAP net loss per common share of $0.23, attributed to allowances for new commitments. Despite this, Sallie Mae's credit quality improved, as evidenced by net charge-offs of $77 million.

In another development, Sallie Mae revised its 2024 guidance for private education loan origination growth to 8%-9%. The company expects net charge-offs to range between $325 million-$340 million. These are among the recent developments for the company. Despite the challenges, Sallie Mae remains optimistic about its future performance and capital return strategy.

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