SLM Corporation's floating rate preferred shares deliver the same underlying corporate credit quality as the common — 31% return on equity, 45% net margins — but trade above intrinsic value with negative upside to resistance and an exceptionally high dividend coverage ratio of 796%, suggesting the preferred is priced for income safety rather than capital appreciation.
Thesis pillars
- Overvalued Above Resistance→Stable
- High Quality Corporate Credit↓Deteriorating
- Concentration Loan Portfolio Risk↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 19, 2026
SLM Corporation - Floating Rate (SLMBP) Stock Analysis
Financial Services · Credit Services
Sell if holding. Momentum 2.2/10 is below the 5.0 floor at $71.83 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 2.9): -1.5; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.4).
SLM Corporation (Sallie Mae) originates and services Private Education Loans through its subsidiary Sallie Mae Bank, with $7.4 billion originated in 2025 and $20.3 billion in loans outstanding at December 31, 2025. Revenue is generated from interest income on loans funded... Read more
Sell if holding. Momentum 2.2/10 is below the 5.0 floor at $71.83 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 2.9): -1.5; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.4). Chart setup: No clear chart pattern; technical signals are mixed. Score 4.7/10, moderate confidence.
Passes 5/8 gates (clean insider activity, news events none recent, earnings proximity no date, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: moderate.
About SLM Corporation - Floating Rate
About SLM Corporation - Floating Rate
Sallie Mae Bank reported $29.7 billion in total assets at December 31, 2025, including $20.4 billion in Private Education Loans net, funded by $21.5 billion in deposits and $4.9 billion in outstanding asset-backed securities representing 24 percent of the total loan portfolio. SLM Corporation originated $7.4 billion in Private Education Loans during 2025, a 6 percent increase from 2024, serving more families than any other private student loan lender. The Bank is regulated by the Utah Department of Financial Institutions, the FDIC, and the Consumer Financial Protection Bureau.
SLM's revenue comes almost entirely from net interest income on its Private Education Loan portfolio, funded through a combination of FDIC-insured deposit products and asset-backed securities. The Smart Option Student Loan — available in interest-only, fixed-payment, and deferred repayment options — is the primary product, with more than half of 2025 originations using in-school payment options. The company competes with Citizens Financial Group, PNC Bank, SoFi Technologies, and College Ave. About 16 percent, or $1.25 billion, of 2025 originations were for students at for-profit institutions. Approximately 92.8 percent of loans originated in 2025 were cosigned, and the average FICO at approval was 755.
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SLM faces an evolving regulatory landscape: H.R.1, signed in July 2025, eliminates Grad PLUS loans and caps Parent PLUS at $20,000 annually and $65,000 lifetime per student, effective July 1, 2026. The company anticipates these caps will increase Private Education Loan demand, particularly for graduate students, though the same legislation may attract new competitors and FinTechs into the market. The Bank's capital ratios are subject to mandatory minimums enforced by the FDIC, with failure to meet them potentially triggering mandatory supervisory actions.
See also: Financial Services · Credit Services
From SLM Corporation - Floating Rate's most recent 10-K filing, extracted June 11, 2026.
Thesis
Key Metrics
Quality Signals
Concentration Risks(10-K Item 1A)
- MEDIUMProductPrivate Education Loans10-K Item 1A: 'Our core product offerings are primarily concentrated in loan products for higher education, specifically Private Education Loans'
- MEDIUMloan_portfolioonline deposit products10-K Item 1A: 'Our deposit funding base is primarily concentrated in online deposit products, including high-yield savings accounts, money market accounts, and certificates of deposit'
Material Events(8-K, last 90d)
- 2026-04-27Item 5.02LOWPeter M. Graham and Kerri A. Palmer appointed Co-Presidents of SLM Corporation effective April 22, 2026. Graham retains CFO title; Palmer retains Head of Financial Services title. Both were existing executives receiving additional presidential titles; no departures cited.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
3 floor-breakers
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Momentum 2.2/10 is below the 5.0 floor at $71.83 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 2.9): -1.5; V7 low-quality RISK_OFF penalty: -0.5 (Q=5.4). Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $69.97. Score 4.7/10, moderate confidence.
Default target: $82.60 (+15.0% upside). Prior stop was $69.97. Stop-loss: $69.97.
V7 low-quality RISK_OFF penalty: -0.5 (Q=5.4); Leverage penalty (D/E 2.9): -1.5; Weak overall score: 4.7/10.
SLM Corporation - Floating Rate trades at a P/E of 33.5 (forward N/A). TrendMatrix value score: 3.9/10. Verdict: Sell.
15 analysts cover SLMBP with a consensus score of 3.7/5.
What does SLM Corporation - Floating Rate do?SLM Corporation (Sallie Mae) originates and services Private Education Loans through its subsidiary Sallie Mae Bank,...
SLM Corporation (Sallie Mae) originates and services Private Education Loans through its subsidiary Sallie Mae Bank, with $7.4 billion originated in 2025 and $20.3 billion in loans outstanding at December 31, 2025. Revenue is generated from interest income on loans funded through $21.5 billion in deposits and $4.9 billion in ABS.