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SLMSLM CorporationSell5.8·$22.01+0.41%
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SLM Corporation (SLM) Stock Analysis

Recovery setup

SellVALUE-TRAP 1/5Moderate Confidence

Financial Services · Credit Services

Sell if holding. Multiple concerning factors at $22.01: Leverage penalty (D/E 2.5): -1.5; Concentration risk — Loan Portfolio: Private Education Loans.

SLM Corporation (Sallie Mae) originates and services Private Education Loans through Sallie Mae Bank, an industrial bank regulated by the Utah Department of Financial Institutions, the FDIC, and the CFPB. The company originated $7.4 billion in Private Education Loans in 2025,... Read more

$22.01+11.7% A.UpsideScore 5.8/10#22 of 29 Credit Services
QualityF-score4 / 9FCF yield
IncomeYield2.37%(5y avg 2.01%)Payout14.44%sustainable
Stop $20.89Target $25.07(analyst − 13%)A.R:R 1.7:1
Analyst target$28.82+30.9%11 analysts
$25.07our TP
$22.01price
$28.82mean
$35

Sell if holding. Multiple concerning factors at $22.01: Leverage penalty (D/E 2.5): -1.5; Concentration risk — Loan Portfolio: Private Education Loans. Chart setup: Death cross but MACD improving, RSI 56. Score 5.8/10, moderate confidence.

Passes 7/9 gates (positive momentum, favorable risk/reward ratio, clean insider activity, news events none recent, earnings proximity 37d clear, semi cycle peak clear, materials cycle peak clear). Suitability: aggressive.

10-K grounded · weekly refresh

About SLM Corporation

About SLM Corporation

Sallie Mae Bank held $29.7 billion in total assets at December 31, 2025, with $20.4 billion concentrated in Private Education Loans (held for investment) and $21.5 billion in total deposits; the Bank is regulated by the Utah Department of Financial Institutions, the FDIC, and the Consumer Financial Protection Bureau. SLM Corporation, the Bank's parent, originated $7.4 billion of Private Education Loans in 2025 — a 6% increase over 2024 — serving more families than any other private student loan lender in the United States.

SLM generates net interest income from Private Education Loans priced against its cost of online deposit funding. The flagship Smart Option Student Loan offers three in-school repayment variants; more than half of 2025 originations used interest-only or fixed-payment in-school options, which carry lower rates and reduce total borrower cost. Approximately 92.8% of 2025 originations were cosigned, with average FICO scores of 755 at origination, supporting a net charge-off rate of 2.15% of average loans in repayment in 2025. ABS securitizations totaling $4.9 billion — 24% of the held-for-investment portfolio — supplement deposit funding and provide match-funding extension. The passage of H.R.1 in July 2025 caps federal Grad PLUS loan programs effective July 1, 2026, expected to shift graduate borrowers toward Private Education Loans, though the company notes this may also attract competition from Citizens Financial Group, PNC Bank, SoFi Technologies, and College Ave.

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Sallie Mae Bank's deposit base is primarily concentrated in online deposit products — high-yield savings accounts, money market accounts, and certificates of deposit — exposing funding costs to rate competition from FinTechs and, beginning in 2025, from stablecoin issuers operating under the GENIUS Act. The 10-K notes that paid search marketing by bank competitors and algorithmic changes at deposit information aggregators may reduce the Bank's ability to attract new depositors at competitive cost. With Private Education Loan delinquencies at 4.0% of loans in repayment at December 31, 2025, any credit quality deterioration in an elevated interest rate environment could weigh on both net interest margin and the Bank's ability to distribute capital to the parent.

See also: Financial Services · Credit Services

From SLM Corporation's most recent 10-K filing, extracted June 11, 2026.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-06-17
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Jul 23, 202637d to earnings· next earnings call

Thesis

Rewards
High-quality business
Attractive valuation
Margin of safety: 59%
Risks
Concentration risk — Loan Portfolio: Private Education Loans
Leverage penalty (D/E 2.5): -1.5
Consecutive earnings misses (2)

Key Metrics

P/E (TTM)6.1
P/E (Fwd)6.5
Mkt Cap$4.1B
EV/EBITDA
Profit Mgn44.9%
ROE30.9%
Rev Growth2.5%
Beta0.99
Dividend2.37%
Rating analysts15

Quality Signals

Piotroski F4/9MoatNarrow

Options Flow

P/C1.18bearish
IV88%elevated
Max Pain$14-36.4% vs spot

Concentration Risks(10-K Item 1A)

  • HIGHloan_portfolioPrivate Education Loans
    10-K Item 1A: 'approximately 71 percent of our total assets, and 83 percent of our total assets excluding cash and cash equivalents, were comprised of Private Education Loans'
  • MEDIUMloan_portfolioonline deposit products
    10-K Item 1A: 'Our deposit funding base is primarily concentrated in online deposit products, including high-yield savings accounts, money market accounts, and certificates of deposit'

Material Events(8-K, last 90d)

  • 2026-04-27Item 5.02LOW
    On April 22, 2026, Board appointed existing CFO Peter M. Graham as Co-President and Chief Financial Officer, and existing COO Kerri A. Palmer as Co-President and Head of Financial Services, effective immediately. Both retained their prior executive roles; no reason cited for restructuring.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers·1 ceiling hit

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Revenue Growth
3.1
Earnings Growth
4.0

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

Bollinger
2.3
52w Position
3.1
Support Resistance
3.7
Gap
5.0
GatesDeath cross (50MA < 200MA)Executive change: officer departure/appointmentMomentum 6.2>=5.5A.R:R 1.7 ≥ 1.5Insider activity: OKNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 37d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRecoverySuitability: Aggressive
RSI
56 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $21.01Resistance $23.31

Price Targets

$21
$25
A.Upside+13.9%
A.R:R1.7:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Analyst Consensus

Analysts15
Consensus3.8/5
Avg Target$29

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-07-23 (37d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is SLM stock a buy right now?

Sell if holding. Multiple concerning factors at $22.01: Leverage penalty (D/E 2.5): -1.5; Concentration risk — Loan Portfolio: Private Education Loans. Chart setup: Death cross but MACD improving, RSI 56. Prior stop was $20.89. Score 5.8/10, moderate confidence.

What is the SLM stock price target?

Take-profit target: $25.07 (+11.7% upside). Prior stop was $20.89. Stop-loss: $20.89.

What are the risks of investing in SLM?

Concentration risk — Loan Portfolio: Private Education Loans; Leverage penalty (D/E 2.5): -1.5; Consecutive earnings misses (2).

Is SLM overvalued or undervalued?

SLM Corporation trades at a P/E of 6.1 (forward 6.5). TrendMatrix value score: 8.7/10. Verdict: Sell.

What do analysts say about SLM?

15 analysts cover SLM with a consensus score of 3.8/5. Average price target: $29.

What does SLM Corporation do?SLM Corporation (Sallie Mae) originates and services Private Education Loans through Sallie Mae Bank, an industrial...

SLM Corporation (Sallie Mae) originates and services Private Education Loans through Sallie Mae Bank, an industrial bank regulated by the Utah Department of Financial Institutions, the FDIC, and the CFPB. The company originated $7.4 billion in Private Education Loans in 2025, with $20.3 billion outstanding, funded primarily through $21.5 billion in online deposits and $4.9 billion in ABS structures.

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