What's Going On With Sallie Mae Stock Wednesday?
What's Going On With Sallie Mae Stock Wednesday?
The bank pointed to the past as evidence of Sallie Mae's ability to take advantage of competitors exit from the market. For instance, the lender increased its market share by 60pbs during the 2021-22 school year following Wells Fargo's exit.Sallie Mae Corporation (NASDAQ:SLM) stock is trading higher on Wednesday. Bank of America Corporation (NYSE:BAC) initiated coverage of the student loan provider with a Buy rating and set a price target of $27.
Sallie Mae Corporation（納斯達克股票代碼：SLM）股價週三上漲。美國銀行公司（紐約證券交易所代碼：BAC）以買入評級啓動了對學生貸款提供者的保險，並將目標股價定爲27美元。
The Details: Sallie Mae currently holds a 58% market share in private student loans, however, the bank indicates there's room for growth, describing the lender as "poised for market share gains."
詳情：Sallie Mae目前在私人學生貸款中佔有58％的市場份額，但是，該銀行表示仍有增長的空間，稱該貸方 「爲增加市場份額做好了準備」。
Bank of America points to growth in college enrollment, increase in the price of college and competitors leaving the student loan market to support its market share growth belief. Specifically, the bank stated that college enrollment is estimated to grow by about 4% by 2027 and the cost of college has increased at a 3% compound annual growth rate since 1993-94.
美國銀行指出，大學入學人數增加，大學價格上漲，競爭對手退出學生貸款市場以支持其市場份額增長信念。具體而言，該銀行表示，到2027年，大學入學人數預計將增長約4％，自1993-94年以來，大學費用以3％的複合年增長率增長。
The bank pointed to the past as evidence of Sallie Mae's ability to take advantage of competitors exit from the market. For instance, the lender increased its market share by 60pbs during the 2021-22 school year following Wells Fargo's exit.
該銀行指出，過去證明了Sallie Mae有能力利用競爭對手退出市場的機會。例如，富國銀行退出後，該貸款機構在2021-22學年將其市場份額增加了60便士。
Also, the bank highlighted the lender's focus on high credit-quality consumers. It stated that less than 8% of borrowers at the time of originations had a credit score lower than 670. Next, the note recognized the lender's efficient business model.
此外，該銀行還強調了該貸款機構對高信貸質量消費者的關注。它指出，在發放貸款時，只有不到8％的借款人的信用評分低於670。接下來，該票據認可了該貸款人的高效商業模式。
"Sallie Mae began a strategy in 2020 in which it seeks to minimize balance sheet growth and accelerate share repurchases
by selling student loans at high execution levels due to its strong credit profile. Through the "loan sale arbitrage" strategy, SLM has driven attractive returns, while not needing to expand capital levels to sustain its industry leading origination volumes," said the bank.
“Sallie Mae於2020年開始了一項戰略，旨在最大限度地減少資產負債表增長並加快股票回購。
由於其良好的信貸狀況，以較高的執行水平出售學生貸款。該銀行表示，通過 「貸款銷售套戥」 策略，SlM帶來了誘人的回報，同時無需擴大資本水平來維持其行業領先的發放量。”
Bank of America also recognized some risks to its thesis including, scrutiny by oversight organizations like the Consumer Financial Protection Bureau and a growing number of students choosing to consolidate or refinance with firms that offer interest rates lower than Sallie Mae's.
美國銀行還意識到其論點存在一些風險，包括消費者金融保護局等監督組織的審查，以及越來越多的學生選擇向利率低於薩利·梅的公司進行整合或再融資。
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SLM Price Action: At the time of writing, Sallie Mae shares are trading 1.90% higher at $21.94, according to data from Benzinga Pro.
SlM價格走勢：根據Benzinga Pro的數據，在撰寫本文時，Sallie Mae的股價上漲1.90％，至21.94美元。
Image: Photo via Shutterstock
圖片：照片來自Shutterstock
譯文內容由第三人軟體翻譯。