SLM Stock Soars to All-Time High, Reaching $24.61

Published 21/11/2024, 16:18
SLM Stock Soars to All-Time High, Reaching $24.61

SLM (NASDAQ:SLM) Corporation, commonly known for its Sallie Mae brand, has reached an all-time high, with its stock price soaring to $24.61. This milestone underscores a period of robust growth for the company, which has seen an impressive 71.1% increase over the past year. Investors have shown increased confidence in SLM's business model and future prospects, propelling the stock to new heights and outperforming many of its peers in the financial services sector. The company's strategic initiatives and strong financial performance have contributed to this significant uptrend, marking a notable achievement in its market valuation.

In other recent news, Sallie Mae reported mixed results in its third-quarter earnings. Despite a GAAP net loss per common share of $0.23, largely attributed to increased provision expenses, the company showed a 13% increase in private education loan originations, totaling $2.8 billion. BofA Securities maintained a Buy rating on SLM Corp., even with the earnings miss, highlighting Sallie Mae's strong market position and potential for continued growth. Sallie Mae also announced an increase in its quarterly common dividend from $0.11 to $0.13, indicating confidence in its financial outlook. The company 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 recent developments suggest a robust outlook for Sallie Mae, despite some financial challenges. BofA Securities' continued support underscores the company's solid market presence and future performance potential.

InvestingPro Insights

SLM Corporation's recent stock performance aligns with several key metrics and insights from InvestingPro. The company's stock is currently trading near its 52-week high, with a price that is 99.47% of its highest point over the past year. This corroborates the article's mention of SLM reaching an all-time high.

InvestingPro data shows that SLM has a P/E ratio of 8.14, indicating that the stock may still be reasonably valued despite its significant price increase. The company's revenue growth of 46.87% over the last twelve months as of Q3 2024 suggests strong financial performance, which likely contributes to investor confidence.

InvestingPro Tips highlight that management has been aggressively buying back shares, which often signals confidence in the company's future and can support stock prices. Additionally, the company has demonstrated a high return over the last year, consistent with the 71.1% increase mentioned in the article.

For investors seeking more comprehensive analysis, InvestingPro offers 7 additional tips for SLM Corporation, providing deeper insights into the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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