SLM Corporation (SLM): High Insider Buying Hits The Tape

At SLM Corporation (NASDAQ:SLM), the ratio of insider selling to insider buying over a quarter is running at 1. Could this be a sign something is bothering insiders? SLM recorded 1 sales count on the open market in the last three months. They sold nearly 22,104 shares while purchases amounted to zero shares that period. Looking even further back to 12 months, corporate insiders offloaded 1,751,380 shares when buyers snapped up 589,881 shares. The 12-month’s totals signify about a 2.97-to-1 sell/buy ratio.

Thome Paul F parted with a total of 22.1 thousand shares of SLM Corporation (SLM) at average share price of $11.13. This insider trade in the company took place on 08/03/2018. 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 -5.93 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 -11.87 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 -10.36 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 -9.82 percent since the reporting date. Goode Earl A now left with a stake of 88.85 thousand SLM stock worth $930.25 thousand after the insider selling.

The 12-month median price target for SLM Corporation (SLM) assigned by the analysts stands at $15.25, which represents a return potential of 45.65 percent when compared to the closing price of the stock of $10.47 on Thursday, October 11. The lowest price target for the stock is $14 — slightly more than 33.72 percent from SLM’s current share price. The stock will probably climb 46.99 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 62.37 percent increase from where shares are trading today.),”)

On momentum oscillators front, ‘RSI’ has touched 24.58 on daily chart, which may remain a cause for comfort. If the price breaks below $10.27 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $10.62 mark may result into a pull-back move towards $10.78 level. The stock is currently hovering around the first support level of $10.37. Below this, the next support is placed in the zone of $10.27. Till the time, the SLM stock trades above this level, bulls have nothing to fear.

Shares of SLM Corporation (SLM) are trading at a P/E ratio of 17.82 times earnings reported for the past 12 months. The industry SLM operates in has an average P/E of 51.51. 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 2.78 on the Price-to-Sales ratio. Compare this with the industry average P/S of 7.77. 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.

On 11th of October, SLM Corporation (NASDAQ:SLM) shares ended lower after a volatile session. The shares dropped -0.18 points or -1.69 percent at $10.47 with a heavy trade volume of 3.562 million shares. After opening the session at $10.62, the shares went as high as $10.675 and as low as $10.42, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $4.63 billion and now has 441.78 million shares outstanding. SLM Corporation (SLM) stock has lost -10.13 percent of market value in 21 trading days.

In last reported earnings results, SLM earned $0.24 per share, better than the $0.23, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $341M, better than the $332M analysts expected. Earnings are estimated to increase by 24.2 percent this year, 18.31 percent next year and continue to increase by 23.75 percent annually for the next 5 years. Analysts are forecasting revenue to climb 24 percent to $350M in the next fiscal quarter, while earnings are seen soaring by nearly 41.18 percent to $0.24 per share. 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.

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 -7.35 percent year to date (YTD) against a decline of -5.25 percent in 12 month’s time. The company’s shares still trade -15.97 percent away from its 1-year high of $12.46 and 8.5 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.