SLM’s Strong Financial Performance and Strategic Positioning Earns Buy Rating

Analyst Moshe Orenbuch from TD Cowen maintained a Buy rating on SLM (SLM – Research Report) and keeping the price target at $34.00.

Moshe Orenbuch has given his Buy rating due to a combination of factors that reflect SLM’s strong financial performance and strategic positioning. The company reported first-quarter earnings per share that exceeded both his and the consensus estimates, driven primarily by higher net interest income. Additionally, SLM’s gains on sale margin for a $2 billion loan sale surpassed expectations, indicating effective capital management.
Moreover, SLM demonstrated solid origination growth, even amidst the exit of a major competitor, which aligns with their annual guidance. The company’s credit performance also improved, with lower net charge-offs and a decrease in delinquencies, attributed to enhanced collection practices and successful modification programs. Furthermore, the strong gains on sale margin and the potential for significant share repurchases highlight SLM’s robust capital position, supporting the positive outlook and the Buy rating.

In another report released on April 16, Bank of America Securities also maintained a Buy rating on the stock with a $33.00 price target.

Based on the recent corporate insider activity of 65 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SLM in relation to earlier this year.