SLM's Series B Preferred Stock Exceeds 8.5% Yield Threshold
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 09 2025
0mins
Source: NASDAQ.COM
SLMBP Performance: The one-year performance of SLMBP shares is compared to SLM shares, with SLMBP currently trading flat while SLM shares are down approximately 14.2%.
Dividend History: A chart detailing the historical dividend payments for SLM Corp.'s Floating-Rate Non-Cumulative Preferred Stock, Series B, is provided.
Current Trading Status: On Tuesday, SLMBP shares are noted to be stable, contrasting with the decline in common shares of SLM.
Author's Views: The opinions expressed in the article are those of the author and do not necessarily represent the views of Nasdaq, Inc.
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Analyst Views on SLM
Wall Street analysts forecast SLM stock price to rise
11 Analyst Rating
7 Buy
2 Hold
2 Sell
Moderate Buy
Current: 21.950
Low
23.00
Averages
31.09
High
37.00
Current: 21.950
Low
23.00
Averages
31.09
High
37.00
About SLM
SLM Corporation is a holding company, which operates through various subsidiaries and is a financial brand for higher education. 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. It also offers a range of deposit products insured by the Federal Deposit Insurance Corporation. Its primary private education loan product is the Smart Option Student Loan, which emphasizes in-school payment features that can produce shorter terms and reduce customers’ total finance charges. The Smart Option Student Loan generally runs for six months after the borrower separates from school but can run for up to 36 months for a small subset of graduate loans. It also offers six loan products for specific graduate programs of study. These include the Sallie Mae Law School Loan, the Sallie Mae MBA Loan, the Sallie Mae Graduate School Loan for Health Professions, the Sallie Mae Medical School Loan, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Sallie Mae's Stock Performance Declines
- Stock Price Decline: Sallie Mae's stock has dropped 20.1% over the past six months, now trading at $21.71 per share, prompting investors to reconsider their holdings in light of this significant decline.
- Lackluster Revenue Growth: With $1.96 billion in revenue over the trailing 12 months, Sallie Mae's performance is stagnant compared to five years ago, indicating a failure to consistently increase demand and reflecting poor business quality.
- Slow EPS Growth: The company's earnings per share (EPS) grew at a compounded annual growth rate of 3.1% over the last five years, which, while better than flat revenue, suggests management's response to weaker demand through cost structure adjustments.
- Cautious Investment Advice: Although Sallie Mae's forward P/E ratio stands at 8.1, making it appear cheap, the shaky fundamentals indicate significant downside risk, leading analysts to recommend focusing on more attractive stock options.
See More
Sallie Mae Completes Cash Tender Offer for Senior Notes
- Tender Offer Results: As of 5 p.m. on May 12, 2026, Sallie Mae received tenders for $448,412,000 of its 3.125% senior notes, representing 89.68% of the total outstanding amount, indicating strong market confidence in the company.
- Purchase Price Set: The purchase price for each validly tendered note is $995.83 per $1,000 principal amount, plus accrued interest from the last payment date to the settlement date, ensuring reasonable returns for investors.
- New Notes Offering Connection: The tender offer is linked to a contemporaneous offering of new debt securities, aimed at repurchasing existing notes through new financing, thereby optimizing the capital structure and reducing financing costs.
- Future Repayment Plans: The company plans to use proceeds from the new notes offering to repay any notes not tendered, ensuring repayment capability at maturity and further enhancing market confidence in its financial stability.
See More
Sallie Mae Announces Cash Tender Offer Pricing
- Tender Offer Details: Sallie Mae has announced a cash tender offer for its outstanding 3.125% senior notes, aiming to purchase up to $500 million in notes, with settlement expected on May 15, 2026, thereby optimizing its capital structure and reducing financing costs.
- Purchase Price Setting: The purchase price for the notes is set at $995.83 each, which is 25 basis points above the current yield of 4.125% U.S. Treasury securities, a strategy designed to attract more investor participation and enhance market confidence.
- Tender Timeline: The tender offer will expire on May 12, 2026, requiring investors to validly tender their notes before this deadline to ensure eligibility for the purchase consideration, thus improving liquidity and capital turnover efficiency.
- New Debt Issuance Connection: This tender offer is linked to a contemporaneous offering of new notes, expected to provide funds for the repurchase, further solidifying the company's financial stability and laying the groundwork for future expansion.
See More
Act Two Investors Acquires Additional SLM Shares Worth $15.84 Million
- Share Acquisition: Act Two Investors acquired an additional 670,063 shares of SLM in Q1 2026, with an estimated transaction value of $15.84 million, reflecting confidence in the education loan market.
- Position Value Increase: The quarter-end value of SLM holdings rose by $14.13 million, indicating the dual impact of trading and price changes, suggesting optimistic expectations for the company's future performance.
- Performance Improvement: In its Q1 report, SLM raised its diluted EPS from $1.40 to $1.54, with private education loan originations increasing by 5%, showcasing strong performance in the education finance sector.
- Buyback Strategy: The company repurchased 12 million shares for $259 million during the quarter, continuing its aggressive capital return strategy, despite facing rising delinquency rates, demonstrating confidence in long-term growth.
See More
Act Two Investors Acquires Additional SLM Shares Worth $15.84 Million
- Share Acquisition: Act Two Investors disclosed the purchase of 670,063 shares of SLM in Q1 2026, valued at approximately $15.84 million, reflecting confidence in SLM's future performance.
- Increased Ownership: This acquisition raised SLM's share to 3.34% of Act Two Investors' reportable AUM, indicating its significance within the investment portfolio.
- Strong Financial Performance: SLM reported a diluted EPS of $1.54 for Q1 2026, a 10% increase year-over-year, and raised its full-year earnings guidance, showcasing robust performance in the education loan market.
- Risks and Opportunities: Although SLM's delinquency rate rose to 3.98%, the company maintained a 5.29% net interest margin, and if it can sustain double-digit loan growth, it may attract more long-term investors' interest.
See More
Sallie Mae Expands Graduate Loan Options Ahead of Federal Changes
- Loan Condition Optimization: Sallie Mae's newly launched Graduate and Law School Loans offer competitive interest rates, no origination fees, and multiple repayment options during school, aimed at helping more students fill funding gaps after scholarships and federal aid, thereby enhancing its competitiveness in the graduate loan market.
- Flexible Repayment Options: The new loan products allow students to enjoy up to 12 months of interest-only payments after graduation, easing financial pressure during their transition to careers, while also providing a cosigner release option that further enhances the appeal of the loans.
- Dedicated Support Teams: Sallie Mae provides dedicated support teams for graduate and professional students, ensuring that advanced degree timelines and requirements are met, with 100% U.S.-based loan servicing offering comprehensive support from application through repayment, enhancing customer experience.
- Scholarship Opportunities: In addition to loans, Sallie Mae offers various scholarship opportunities, such as the $5,000 Graduate School No Essay Scholarship awarded quarterly and the Bridging the Dream Scholarship, aimed at providing additional support for students throughout their higher education journey, further solidifying its leadership position in education financing.
See More
Sallie Mae's Stock Performance Declines
- Stock Price Decline: Sallie Mae's stock has dropped 20.1% over the past six months, now trading at $21.71 per share, prompting investors to reconsider their holdings in light of this significant decline.
- Lackluster Revenue Growth: With $1.96 billion in revenue over the trailing 12 months, Sallie Mae's performance is stagnant compared to five years ago, indicating a failure to consistently increase demand and reflecting poor business quality.
- Slow EPS Growth: The company's earnings per share (EPS) grew at a compounded annual growth rate of 3.1% over the last five years, which, while better than flat revenue, suggests management's response to weaker demand through cost structure adjustments.
- Cautious Investment Advice: Although Sallie Mae's forward P/E ratio stands at 8.1, making it appear cheap, the shaky fundamentals indicate significant downside risk, leading analysts to recommend focusing on more attractive stock options.
See More
Sallie Mae Completes Cash Tender Offer for Senior Notes
- Tender Offer Results: As of 5 p.m. on May 12, 2026, Sallie Mae received tenders for $448,412,000 of its 3.125% senior notes, representing 89.68% of the total outstanding amount, indicating strong market confidence in the company.
- Purchase Price Set: The purchase price for each validly tendered note is $995.83 per $1,000 principal amount, plus accrued interest from the last payment date to the settlement date, ensuring reasonable returns for investors.
- New Notes Offering Connection: The tender offer is linked to a contemporaneous offering of new debt securities, aimed at repurchasing existing notes through new financing, thereby optimizing the capital structure and reducing financing costs.
- Future Repayment Plans: The company plans to use proceeds from the new notes offering to repay any notes not tendered, ensuring repayment capability at maturity and further enhancing market confidence in its financial stability.
See More
Sallie Mae Announces Cash Tender Offer Pricing
- Tender Offer Details: Sallie Mae has announced a cash tender offer for its outstanding 3.125% senior notes, aiming to purchase up to $500 million in notes, with settlement expected on May 15, 2026, thereby optimizing its capital structure and reducing financing costs.
- Purchase Price Setting: The purchase price for the notes is set at $995.83 each, which is 25 basis points above the current yield of 4.125% U.S. Treasury securities, a strategy designed to attract more investor participation and enhance market confidence.
- Tender Timeline: The tender offer will expire on May 12, 2026, requiring investors to validly tender their notes before this deadline to ensure eligibility for the purchase consideration, thus improving liquidity and capital turnover efficiency.
- New Debt Issuance Connection: This tender offer is linked to a contemporaneous offering of new notes, expected to provide funds for the repurchase, further solidifying the company's financial stability and laying the groundwork for future expansion.
See More
Act Two Investors Acquires Additional SLM Shares Worth $15.84 Million
- Share Acquisition: Act Two Investors acquired an additional 670,063 shares of SLM in Q1 2026, with an estimated transaction value of $15.84 million, reflecting confidence in the education loan market.
- Position Value Increase: The quarter-end value of SLM holdings rose by $14.13 million, indicating the dual impact of trading and price changes, suggesting optimistic expectations for the company's future performance.
- Performance Improvement: In its Q1 report, SLM raised its diluted EPS from $1.40 to $1.54, with private education loan originations increasing by 5%, showcasing strong performance in the education finance sector.
- Buyback Strategy: The company repurchased 12 million shares for $259 million during the quarter, continuing its aggressive capital return strategy, despite facing rising delinquency rates, demonstrating confidence in long-term growth.
See More
Act Two Investors Acquires Additional SLM Shares Worth $15.84 Million
- Share Acquisition: Act Two Investors disclosed the purchase of 670,063 shares of SLM in Q1 2026, valued at approximately $15.84 million, reflecting confidence in SLM's future performance.
- Increased Ownership: This acquisition raised SLM's share to 3.34% of Act Two Investors' reportable AUM, indicating its significance within the investment portfolio.
- Strong Financial Performance: SLM reported a diluted EPS of $1.54 for Q1 2026, a 10% increase year-over-year, and raised its full-year earnings guidance, showcasing robust performance in the education loan market.
- Risks and Opportunities: Although SLM's delinquency rate rose to 3.98%, the company maintained a 5.29% net interest margin, and if it can sustain double-digit loan growth, it may attract more long-term investors' interest.
See More
Sallie Mae Expands Graduate Loan Options Ahead of Federal Changes
- Loan Condition Optimization: Sallie Mae's newly launched Graduate and Law School Loans offer competitive interest rates, no origination fees, and multiple repayment options during school, aimed at helping more students fill funding gaps after scholarships and federal aid, thereby enhancing its competitiveness in the graduate loan market.
- Flexible Repayment Options: The new loan products allow students to enjoy up to 12 months of interest-only payments after graduation, easing financial pressure during their transition to careers, while also providing a cosigner release option that further enhances the appeal of the loans.
- Dedicated Support Teams: Sallie Mae provides dedicated support teams for graduate and professional students, ensuring that advanced degree timelines and requirements are met, with 100% U.S.-based loan servicing offering comprehensive support from application through repayment, enhancing customer experience.
- Scholarship Opportunities: In addition to loans, Sallie Mae offers various scholarship opportunities, such as the $5,000 Graduate School No Essay Scholarship awarded quarterly and the Bridging the Dream Scholarship, aimed at providing additional support for students throughout their higher education journey, further solidifying its leadership position in education financing.
See More
