Undoubtedly, SLM Corporation (NASDAQ:SLM) has been one of the most volatile stocks in the market in recent times, and the way it handled Monday’s volatility suggests the stock may be poised to decline heading into short-terms. The shares dropped -0.02 points or -0.18 percent at $10.85 with a heavy trade volume of 2.569 million shares. After opening the session at $10.87, the shares went as high as $10.91 and as low as $10.68, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $4.79 billion and now has 441.78 million shares outstanding. SLM Corporation (SLM) stock has lost -7.34 percent of market value in 21 trading days.
SLM stock has a trailing 3-year beta of 1.19, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.72 a share in the trailing twelve months. The stock’s value has fallen -3.98 percent year to date (YTD) against a decline of -2.34 percent in 12 month’s time. The company’s shares still trade -12.92 percent away from its 1-year high of $12.46 and 12.44 percent up from 52-week low of $9.65. The average consensus rating on the company is 1.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.
SLM Corporation (SLM) will probably climb 41.84 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $17-month high price target. This represents a whopping 56.68 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $15.25, which represents a return potential of 40.55 percent when compared to the closing price of the stock of $10.85 on Monday, October 08. The lowest price target for the stock is $14 — slightly more than 29.03 percent from SLM’s current share price.
History has shown that shares in SLM Corporation have gone down on 18 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings.
Let’s take a look at some insider activity at SLM Corporation (NASDAQ:SLM) and see the pattern. The earliest insider trade took place on 08/03/2018. Thome Paul F parted with a total of 22.1 thousand shares of company at average share price of $11.13. The total for the sales was set at $246.02 thousand. After this transaction, the EVP & Chief Admin Officer account balance stood at 207.23 thousand shares. The stock lost -2.34 percent since that insider sale. On 06/06/2018, Mcgarry Steven, EVP & CFO, sold 95.58 thousand shares at a price per share of $11.88. This removed 1.14 million shares from the insider’s fortune and the stock saw a -8.5 percent retreat in value since the news became public. This transaction left 245.48 thousand shares in the EVP & CFO account.
On 05/21/2018, SVP, General Counsel Jafarieh Nicolas performed a sale transaction worth $104.08 thousand. This sale at $11.68 each has eliminated 8.91 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -6.93 percent decrease since the transaction was reported. The insider now is left with 51.81 thousand shares remaining in the account. Goode Earl A, who performs the Director job, sold 4.62 thousand shares for $53.6 thousand. The disposal occurred on 05/02/2018 was priced at $11.61 per share. The share price plunged -6.37 percent since the reporting date. Goode Earl A now left with a stake of 88.85 thousand SLM stock worth $964.01 thousand after the insider selling.
The stock is currently hovering around the first support level of $10.72. Below this, the next support is placed in the zone of $10.58. Till the time, the SLM stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 30.47 on daily chart, which may remain a cause for comfort. If the price breaks below $10.58 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $10.95 mark may result into a pull-back move towards $11.04 level.
Shares of SLM Corporation (SLM) are trading at a P/E ratio of 15.05 times earnings reported for the past 12 months. The industry SLM operates in has an average P/E of 14.12. Its P/E ratio went as low as 11.07X and as high as 24.3 over the 5-year span.Further, it is sporting a 2.88 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.49. 74 percent is the gross profit margin for SLM Corporation and operating margin sits at 32.6 percent. Along with this, the net profit margin is 20.8 percent.