SLM (NASDAQ:SLM) Shares Gap Down on Disappointing Earnings

SLM Corporation (NASDAQ:SLM)’s share price gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $24.18, but opened at $23.00. SLM shares last traded at $23.7240, with a volume of 676,718 shares changing hands.

The credit services provider reported $0.29 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.46 by ($0.17). The business had revenue of $401.11 million for the quarter, compared to analysts’ expectations of $409.22 million. SLM had a net margin of 26.09% and a return on equity of 34.07%. The firm’s quarterly revenue was down .7% on a year-over-year basis. During the same quarter last year, the firm earned $0.32 EPS. SLM has set its FY 2026 guidance at 3.100-3.200 EPS.

SLM Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Friday, September 4th will be paid a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend is Friday, September 4th. SLM’s dividend payout ratio (DPR) is currently 14.53%.

Key Headlines Impacting SLM

Here are the key news stories impacting SLM this week:

• Positive Sentiment: SLM reaffirmed/issued FY 2026 EPS guidance of 3.10 to 3.20, which is roughly in line with consensus and may help limit downside if investors focus on the full-year outlook rather than the quarter. Sallie Mae Reports Second Quarter 2026 Financial Results
• Positive Sentiment: The company also highlighted loan origination growth, showing the underlying lending franchise is still expanding even as earnings were weak. Sallie Mae Q2 Earnings Miss Estimates, NII Dips, Expenses Rise Y/Y
• Neutral Sentiment: Investor focus remains split between the “student loan reform” narrative and valuation arguments, which may be supporting some longer-term interest in the stock despite the weak quarter. SLM (SLM) Heads Into Earnings On Student Loan Reform Narrative and Undervalued Debate
• Negative Sentiment: SLM reported Q2 EPS of $0.29 versus estimates of $0.46, while revenue of $401.1 million also missed expectations, reinforcing concerns about near-term earnings momentum. SLM earnings report and conference call
• Negative Sentiment: Management cited lower net interest income, rising expenses, and margin pressure, all of which weigh on profitability and help explain why the stock is moving lower. Sallie Mae (SLM) Misses Q2 Earnings and Revenue Estimates

Analysts Set New Price Targets

Several equities analysts have commented on SLM shares. JPMorgan Chase & Co. upped their price objective on SLM from $24.00 to $25.00 and gave the company an “underweight” rating in a research report on Monday, July 13th. Weiss Ratings upgraded SLM from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, June 18th. Royal Bank Of Canada boosted their target price on shares of SLM from $28.00 to $29.00 and gave the company an “outperform” rating in a research note on Friday, July 10th. Morgan Stanley upped their price target on shares of SLM from $27.00 to $28.00 and gave the stock an “equal weight” rating in a report on Monday, July 20th. Finally, Wells Fargo & Company set a $28.00 price target on shares of SLM in a research note on Friday. Five equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, SLM has an average rating of “Hold” and an average price target of $29.80.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Goldman Sachs Group Inc. raised its position in SLM by 33.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 547,724 shares of the credit services provider’s stock valued at $16,087,000 after purchasing an additional 137,285 shares in the last quarter. SG Americas Securities LLC grew its position in shares of SLM by 63.1% during the 1st quarter. SG Americas Securities LLC now owns 261,392 shares of the credit services provider’s stock worth $5,596,000 after buying an additional 101,120 shares in the last quarter. Entropy Technologies LP increased its stake in shares of SLM by 616.6% during the third quarter. Entropy Technologies LP now owns 109,485 shares of the credit services provider’s stock valued at $3,031,000 after buying an additional 94,207 shares during the period. Handelsbanken Fonder AB increased its stake in shares of SLM by 16.1% during the second quarter. Handelsbanken Fonder AB now owns 56,179 shares of the credit services provider’s stock valued at $1,457,000 after buying an additional 7,800 shares during the period. Finally, Captrust Financial Advisors raised its holdings in shares of SLM by 31.3% in the fourth quarter. Captrust Financial Advisors now owns 53,673 shares of the credit services provider’s stock valued at $1,452,000 after acquiring an additional 12,793 shares in the last quarter. Institutional investors own 98.94% of the company’s stock.

SLM Price Performance

The firm has a fifty day moving average of $23.57 and a two-hundred day moving average of $23.32. The stock has a market capitalization of $4.58 billion, a P/E ratio of 6.78, a P/E/G ratio of 2.22 and a beta of 0.94. The company has a debt-to-equity ratio of 2.59, a current ratio of 1.30 and a quick ratio of 1.29.

SLM Company Profile

SLM Corporation, operating as Sallie Mae Bank, is a leading U.S.-based consumer banking company specializing in education financing and related banking products. The company provides a range of private student loans for undergraduate and graduate studies, Parent PLUS loans, and specialized financing for career and certificate programs. In addition to its core lending services, Sallie Mae offers deposit products including savings accounts, checking accounts, money market accounts, certificates of deposit, and credit cards tailored to students and young adults.

Founded in 1972 as the Student Loan Marketing Association—a government-sponsored enterprise—Sallie Mae was privatized in 2004 and has since focused on expanding its private education loan offerings and digital banking solutions.