SLM Corporation (SLM) shares are trading at higher $11.44 and the avg recommendation for the stock is Strong Buy, while the current analyst price target stands at $11.73.
To add more color to this target, the company’s high over the last year is $12.32 and the low is $5.60. Over the last 52 weeks, SLM is up 36.41% while the S&P 500 is up 17.73%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, SLM reported a profit of $364.57 million. SLM Corporation also saw revenues increase to $482.38 million. In addition, SLM has free cash flow of -$209.15 million as of 09-2020.
SLM booked profit margins of 27.00%, its Return on Equity (ROE) is 28.70%, and its Return on Assets is 1.80%. All told, it is clear that, SLM needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. SLM has a short ratio of 2.04 and outstanding shares of 375.09M.
Company Outlook
SLM has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 3.5 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.41. Investors should also keep an eye on sector updates as SLM has historically followed its peers on positive news.
All told, SLM Corporation SLM has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SLM represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
SLM Corporation SLM is now commanding a market cap of 4.35B and a float of 371.71M. SLM is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of SLM stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in SLM, either long or short, and we have not been compensated for this article.