SLM - Sallie Mae stock rises after starting $1B stock buyback offer

Sallie Mae (SLM) shares climb 6.6% after offering to buy up to $1B of its common stock through a "modified Dutch auction."Offer to purchase outstanding shares of common stock, par value $0.20 per share, at a per-share price of no more than $15 and no less than $13.10.Based on the number of securities tendered and the prices specified by the tendering shareholders, SLM will determine the lowest price per share within the specified range that will enable it to buy shares having an aggregate purchase price of up to $1B.Sallie Mae says the offer is "consistent with its long-term goal of allocating capital to provide value and increase liquidity for its stockholders."The buyback offer marks a departure from the firm's usual pace of smaller common stock repurchases, which only started in 2019 as seen in the past seven quarters.

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Sallie Mae stock rises after starting $1B stock buyback offer