SLM Corporation (NASDAQ: SLM)
SLM Corporation Shares Rise On Q1 Results
SLM Corporation (SLM), a service and loans holding company yesterday reported their first quarter 2017 financial results. Sallie Mae reported first quarter adjusted earnings of $0.21 per share which beat analyst expectations of $0.20 per share.
Sallie Mae reported first quarter adjusted revenues of $268.1 million which beat analyst expectations of $260.2 million.
SLM Corporation CEO’s Comments
“Since the spin off nearly three full years ago, we have made a meaningful shift toward becoming a consumer bank,” said Raymond J. Quinlan, chairman and CEO. “I am gratified by the ongoing results of that effort: disciplined compliance management has cultivated strong working relationships with our regulators, and high credit quality in originations has translated into customer success in repayment. I applaud our 1,347 employees and their commitment to providing our customers with the best possible experience from application through repayment. Through their exemplary efforts, we have put past regulatory orders behind us and made our customers the center of our efforts.” Business Wire
SLM Technical Analysis
SLM opened trading yesterday at $11.60 which was up from the previous day’s trading close of $11.49. SLM closed trading yesterday at $11.53 and spiked up after market to $12.50, equivalent to a 8% increase from the closing price. Taking a look at the daily chart we can see that the last time SLM traded above these levels we have to go back to February 15th when it traded at highs of $12.54.
Taking a closer look at the daily chart we can see that before the spike up SLM had already been in an overall upward trend dating back to November 8th when it traded at $7.10. SLM has a float of 425.49 million shares and traded 1.05 times the normal daily trading volume on Wednesday.
For trading purposes, I would like to see SLM open trading on Thursday above $12.15 and if it does I would be looking to take a long position at the bell. However, I would like to see it come back and test the VWAP for a better entry. My stop loss would be $0.15 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
SLM Corporation, incorporated on December 2, 2013, is a holding company. The Company’s primary business is to originate and service loans it makes to students and their families to finance the cost of their education. The Company is a saving, planning and paying for college company. It is engaged in originating and servicing Private Education Loans it makes to students and their families.
The Company uses Private Education Loans to mean education loans to students or their families that are not made, insured or guaranteed by any state or federal government. The Company also operates Upromise, Inc. (Upromise), a consumer savings network that provides financial rewards on everyday purchases to help families save for college.
The Company’s Private Education Loans include protections for the family, including loan forgiveness in case of death or permanent disability of the student borrower and a free, quarterly Fair Isaac Corporation (FICO) Score benefit to students with a Smart Option Student Loan.
The Company’s Private Education Loans that it owns or services are originated and funded by Sallie Mae Bank (the Bank), its Utah industrial bank subsidiary. Reuters