SLM Corp. Stock Surpasses Analyst Target—What’s Next for Investors?
In recent trading, shares of SLM Corp. (Symbol: SLM) have crossed above the average analyst 12-month target price of $26.67, changing hands for $27.13/share. When a stock reaches the target set by analysts, they typically have two options: either downgrade the stock based on valuation or raise their target price. Analyst responses might also be influenced by positive business developments that have driven the stock price higher—if the company is performing well, a new target price may be warranted.
There are 12 different analyst targets within the Zacks coverage universe contributing to that average for SLM Corp. However, it’s important to note that the average is just a mathematical figure. Some analysts have lower targets, with one predicting a price of $23.00, while another holds an optimistic view with a target as high as $32.00. The standard deviation among these predictions is $2.229.
The purpose of examining the average SLM price target is to seek out collective insights from all analysts, rather than relying on one expert’s opinion. With SLM’s stock price now exceeding the average target of $26.67/share, investors have a signal to reassess the company. They might wonder whether $26.67 is merely a stepping stone toward a higher target or if the valuation has become too high, suggesting it may be wise to take some profits. Below is a table showing the current perspectives of analysts covering SLM Corp.
| Recent SLM Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 8 | 8 | 7 | 7 |
| Buy ratings: | 3 | 3 | 3 | 3 |
| Hold ratings: | 1 | 1 | 1 | 1 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.38 | 1.38 | 1.41 | 1.41 |
The average rating shown in the final row of the table ranges from 1 to 5, where 1 indicates a Strong Buy and 5 indicates a Strong Sell. This article utilized data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on SLM — FREE.
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• BBLN YTD Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
