Sallie Mae Shares Pop After Reinstatement Of Dividend
RESTON, Va. – Shares in Sallie Mae surged 13% yesterday after the student loan giant announced its first quarterly dividend payment since 2007 and a $300 million share buyback program.
The rise in share price to $16.32 came even after the company reported first quarter net declined 27% to $175 million, largely because of a $133 million unrealized loss on derivatives.
The company, set back by last year’s elimination of the federally guaranteed student loan program, said it originated $940 million in private education loans during the quarter, up 12% from the same period last year. The portfolio totaled $36 billion worth of private loans at the end of the quarter.
Delinquencies as a percentage of private education loans in repayment fell to 10.4% as of March 31, down from 12.2% a year earlier.