NEW YORK (TheStreet) -- Shares of SLM(SLM) - Get Report are up 5.9% to $7.35 in morning trading on Monday after the saving, planning, and college tuition company announced a fourth quarter dividend of 0.87125 cents per share.
The dividend is for the 3.3 million shares of outstanding series A preferred stock.
The dividend is payable November 2 to shareholder of record on October 21.
SLM's shares fell 9.75% last week and the stock has fallen 11.37% over the past four weeks.
TheStreet Ratings team rates SLM CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
We rate SLM CORP (SLM) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 12.9%. Since the same quarter one year prior, revenues rose by 19.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- SLM has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.
- When compared to other companies in the Consumer Finance industry and the overall market, SLM CORP's return on equity is below that of both the industry average and the S&P 500.
- The gross profit margin for SLM CORP is currently lower than what is desirable, coming in at 32.96%. It has decreased significantly from the same period last year. Despite the weak results of the gross profit margin, the net profit margin of 45.85% has significantly outperformed against the industry average.
- SLM has underperformed the S&P 500 Index, declining 15.12% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- You can view the full analysis from the report here: SLM