SLM Corp (SLM)

In the past six months, SLM Corp.'s stock price has experienced several notable events. The stock decreased by 13.50% over this period. Compass Point downgraded SLM Corp. from "Buy" to "Sell" in December 2025, citing an updated medium-term outlook that signaled a significant reset in earnings expectations. SLM Corp. exceeded Q4 2025 expectations, reporting EPS of $1.12 and revenue of $454 million, which led to a 2.69% aftermarket stock increase. The company authorized a new $500 million share repurchase program in January 2026. A securities class-action lawsuit has been filed against SLM Corp., alleging false or misleading statements and failure to disclose a significant increase in early-stage delinquencies. Following a report in August 2025 that flagged higher-than-seasonal delinquency rates, SLM's stock price fell by 8.09%.

Demand for SLM Corp.'s products and services, particularly private education loan originations, exhibits seasonality. There is a "peak season" for applications and originations, with demand typically trailing off as September approaches. In 2024, an extension of peak volume was observed through August. Changes in federal loan programs could incentivize some borrowers to seek private financing. The fall 2025 origination season is projected to have a moderated growth rate compared to fall 2024.

SLM Corp., also known as Sallie Mae, is a consumer banking company in the United States that specializes in private education loans and related financial services. The company operates in the education finance industry, originating and servicing loans for students and families to finance higher education. Sallie Mae offers private student loans, such as the Smart Option Student Loan, and specialized loan products for graduate programs. Beyond lending, the company provides savings options like 529 college savings plans, career training programs, and retail deposit products.

SLM Corp.'s headquarters are in Newark, Delaware, and its sales are primarily concentrated in the United States. While it offers international student loans, these are for students who are not U.S. citizens or permanent residents but reside and attend school in the U.S. and require a U.S. co-signer. Its core lending operations are focused on the U.S. education market.

In the past year, SLM Corp.'s brand reputation has faced challenges due to a securities class-action lawsuit alleging misleading statements regarding an increase in early-stage delinquencies and the effectiveness of its loan modification programs. Despite these legal issues, Sallie Mae continues to position itself as a "trusted partner" in education finance. The company also engages in positive brand-building activities, such as offering scholarship programs and partnering to provide financial literacy curriculum to high school students.

SLM Corp. is overwhelmingly controlled by institutional investors, which hold approximately 98.94% or 88.9% of the outstanding common stock. Major institutional owners include Vanguard Fiduciary Trust Co., The Vanguard Group, Inc., Fidelity Management & Research Co. LLC, and BlackRock Advisors LLC. Insider ownership accounts for about 0.91%, while retail and other individual investors hold a small remaining float of approximately 0.15%.