SLM - Sallie Mae's CEO Thinks the Stock Is Too Cheap -- and He's Doing Something About It
College enrollments tumbled. Unemployment rates shot up. Loans in forbearance were commonplace.
In 2020, a confluence of factors arising from the coronavirus pandemic hurt student loan lender SLM (NASDAQ: SLM) , better known as Sallie Mae. The lender's stock price took a hit as a result, stuck as low as $6 at one point -- down 50% from its February peak. At one point, the lender saw its price-to-earnings (P/E) ratio drop under 4.
The drastic drop in stock price had gone too far, and the company decided to do something about it. In the latter half of last year and into this year, Sallie Mae committed to buying back a significant amount of stock at rock-bottom prices. This has helped boost the stock's price by 55% this year as of Thursday morning's prices.
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Sallie Mae's CEO Thinks the Stock Is Too Cheap -- and He's Doing Something About It