OneMain Holdings, Inc. (NYSE:OMF) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analysts maintain a “Moderate Buy” consensus on OneMain Holdings, with eight buys, three holds and one sell among 12 brokerages. The average 12-month price target is $68.40, above the reported share price of $64.60.
• OneMain exceeded quarterly expectations, reporting $1.31 in EPS versus the $1.26 consensus and $1.62 billion in revenue, up 6.7% year over year. The company also paid a $1.05 quarterly dividend, representing a 6.5% annualized yield.
• Institutional ownership is substantial at 85.82%, with BlackRock and California State Teachers Retirement System among investors adding major positions. Company insiders, however, sold 14,348 shares worth approximately $911,576 during the quarter.

OneMain Holdings, Inc. (NYSE:OMF - Get Free Report) has been given an average rating of "Moderate Buy" by the twelve brokerages that are presently covering the firm, Marketbeat reports. One analyst has rated the stock with a sell rating, three have assigned a hold rating and eight have given a buy rating to the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $68.40.

A number of research firms have weighed in on OMF. Truist Financial lifted their price objective on OneMain from $70.00 to $71.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. Citizens Jmp upped their target price on OneMain from $68.00 to $70.00 and gave the stock a "market outperform" rating in a research note on Thursday, July 30th. Citigroup reiterated a "market outperform" rating on shares of OneMain in a research report on Thursday, July 30th. Evercore set a $66.00 price target on OneMain in a report on Monday, July 6th. Finally, Weiss Ratings restated a "buy (b-)" rating on shares of OneMain in a research report on Tuesday, July 7th.

OneMain Price Performance

Shares of OneMain stock opened at $64.60 on Tuesday. The firm has a fifty day moving average price of $62.23 and a 200 day moving average price of $57.80. OneMain has a 1 year low of $45.78 and a 1 year high of $71.93. The stock has a market cap of $7.43 billion, a PE ratio of 9.73, a price-to-earnings-growth ratio of 0.50 and a beta of 1.22.

OneMain (NYSE:OMF - Get Free Report) last posted its earnings results on Wednesday, July 29th. The financial services provider reported $1.31 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.26 by $0.05. The company had revenue of $1.62 billion during the quarter, compared to the consensus estimate of $1.28 billion. OneMain had a net margin of 13.92% and a return on equity of 23.49%. The firm's quarterly revenue was up 6.7% on a year-over-year basis. During the same period in the previous year, the firm posted $1.45 earnings per share. As a group, equities analysts expect that OneMain will post 7.11 EPS for the current year.

OneMain Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Monday, August 10th were issued a dividend of $1.05 per share. This represents a $4.20 annualized dividend and a dividend yield of 6.5%. The ex-dividend date of this dividend was Monday, August 10th. OneMain's payout ratio is 63.25%.

Insider Buying and Selling at OneMain

In related news, SVP Michael Hedlund sold 2,500 shares of the business's stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $64.00, for a total value of $160,000.00. Following the completion of the transaction, the senior vice president directly owned 10,627 shares in the company, valued at $680,128. The trade was a 19.04% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Micah Conrad sold 5,000 shares of the stock in a transaction on Monday, June 29th. The stock was sold at an average price of $62.00, for a total transaction of $310,000.00. Following the sale, the chief operating officer directly owned 96,250 shares in the company, valued at $5,967,500. This trade represents a 4.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 14,348 shares of company stock valued at $911,576. Company insiders own 0.29% of the company's stock.

Institutional Investors Weigh In On OneMain

Hedge funds have recently modified their holdings of the company. BlackRock Inc. acquired a new stake in OneMain in the second quarter valued at approximately $633,893,000. California State Teachers Retirement System grew its stake in OneMain by 5,748.8% in the 2nd quarter. California State Teachers Retirement System now owns 8,245,644 shares of the financial services provider's stock valued at $502,737,000 after acquiring an additional 8,104,663 shares during the period. Dimensional Fund Advisors LP increased its holdings in OneMain by 7.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,342,241 shares of the financial services provider's stock worth $232,258,000 after acquiring an additional 308,370 shares in the last quarter. Janus Henderson Group PLC increased its holdings in OneMain by 7.7% in the 1st quarter. Janus Henderson Group PLC now owns 2,729,862 shares of the financial services provider's stock worth $146,030,000 after acquiring an additional 195,591 shares in the last quarter. Finally, Jupiter Topco LLC acquired a new position in OneMain during the second quarter worth $166,060,000. 85.82% of the stock is owned by hedge funds and other institutional investors.

OneMain Company Profile

OneMain Financial NYSE: OMF is a leading consumer finance company specializing in unsecured personal loans for middle-income customers. The company offers tailored loan products designed to address a variety of needs, including debt consolidation, home improvement financing, large purchases and emergency expenses. Through a combination of branch-based service and digital channels, OneMain aims to deliver a personalized borrowing experience with flexible repayment options and transparent terms.

Tracing its roots back to the Commercial Credit Company founded in 1912, OneMain has evolved through a series of mergers and corporate transformations.

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