Key Takeaways From SLM Analyst Ratings

SLM SLM underwent analysis by 9 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $20.28, with a high estimate of $25.00 and a low estimate of $16.00. This upward trend is apparent, with the current average reflecting a 16.55% increase from the previous average price target of $17.40.

Interpreting Analyst Ratings: A Closer Look

The perception of SLM by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to SLM. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of SLM compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of SLM's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of SLM's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on SLM analyst ratings.

All You Need to Know About SLM

SLM Corp is the largest student lender in the country. It makes and holds student loans through the guaranteed Federal Family Education Loan Program as well as through private channels. It also engages in debt-management operations, including accounts receivable and collections services, and runs college savings programs.

Financial Milestones: SLM's Journey

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Challenges: SLM's revenue growth over 3 months faced difficulties. As of 30 September, 2023, the company experienced a decline of approximately -12.0%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Net Margin: SLM's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 6.05%, the company may face hurdles in effective cost management.

Return on Equity (ROE): SLM's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.59%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.09%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: SLM's debt-to-equity ratio is notably higher than the industry average. With a ratio of 3.56, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Basics of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.