Sallie Mae sets 2025 EPS target of $3.20–$3.30 with new partnership approach during peak loan origination growth
Management Insights: SLM Corporation reported a successful Q3 2025 with a GAAP diluted EPS of $0.63 and loan originations of $2.9 billion, reflecting growth in private student lending. CEO Jonathan Witter expressed optimism about the company's long-term outlook and upcoming strategic partnerships.
Financial Performance: The company achieved $373 million in net interest income, a year-over-year increase, while provisions for credit losses decreased significantly to $179 million. Noninterest expenses rose slightly but remained aligned with guidance.
Outlook and Guidance: SLM updated its GAAP EPS guidance for 2025 to a range of $3.20 to $3.30, reaffirming confidence in loan originations and credit stability despite economic uncertainties. Management plans to sell seasoned loans and recent originations in the near future.
Analyst Sentiment: Analysts expressed concerns about rising delinquencies and credit quality, shifting from a previously optimistic tone to a more cautious outlook. Management maintained confidence in their strategy and credit performance, emphasizing stability and flexibility in their operations.
Discover Tomorrow's Bullish Stocks Today
Analyst Views on SLMBP
No data
About the author
Wells Fargo Reaffirms Overweight Rating for SLM Corporation - Preferred Stock (SLMBP)
Wells Fargo Coverage: On December 11, 2025, Wells Fargo maintained an Overweight recommendation for SLM Corporation - Preferred Stock (NasdaqGS:SLMBP), with an average one-year price target of $87.37/share, indicating a potential upside of 16.25% from its recent closing price of $75.15/share.
Projected Revenue and EPS: SLM Corporation's projected annual revenue is estimated at $1,731 million, reflecting an 18.51% increase, with a projected non-GAAP EPS of 3.19.
Fund Sentiment Changes: There has been a decrease in institutional ownership of SLM Corporation - Preferred Stock, with 10 funds reporting positions, down by 9.09% from the previous quarter, while the average portfolio weight increased by 2.69%.
Shareholder Activity: Various funds have adjusted their holdings in SLMBP, with some decreasing their allocations significantly, while Atlas Wealth increased its holdings by 21.08%, indicating mixed sentiment among shareholders.
SLM's Series B Preferred Stock Exceeds 8.5% Yield Threshold
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.
