10,396,805 Shares in OneMain Holdings, Inc. $OMF Acquired by BlackRock Inc.

Key Points

• BlackRock acquired 10.4 million OneMain shares worth approximately $633.9 million, giving it a 9.04% stake. Institutional investors collectively own 85.82% of the company.
• OneMain reported quarterly EPS of $1.31, exceeding estimates of $1.26, while revenue rose 6.7% year over year to $1.62 billion.
• The company paid a quarterly dividend of $1.05 per share, equivalent to a 6.6% annualized yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $68.40.

BlackRock Inc. purchased a new position in OneMain Holdings, Inc. (NYSE:OMF - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 10,396,805 shares of the financial services provider's stock, valued at approximately $633,893,000. BlackRock Inc. owned approximately 9.04% of OneMain as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also recently added to or reduced their stakes in OMF. Dimensional Fund Advisors LP raised its holdings in OneMain by 7.6% during the first quarter. Dimensional Fund Advisors LP now owns 4,342,241 shares of the financial services provider's stock worth $232,258,000 after buying an additional 308,370 shares during the last quarter. Janus Henderson Group PLC lifted its stake in shares of OneMain by 7.7% in the first quarter. Janus Henderson Group PLC now owns 2,729,862 shares of the financial services provider's stock valued at $146,030,000 after buying an additional 195,591 shares in the last quarter. Geode Capital Management LLC grew its holdings in shares of OneMain by 0.7% during the fourth quarter. Geode Capital Management LLC now owns 2,422,562 shares of the financial services provider's stock valued at $164,017,000 after buying an additional 15,941 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in shares of OneMain by 17.6% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 2,310,513 shares of the financial services provider's stock valued at $156,075,000 after buying an additional 345,269 shares during the last quarter. Finally, State Street Corp increased its position in shares of OneMain by 2.3% during the fourth quarter. State Street Corp now owns 2,305,246 shares of the financial services provider's stock worth $155,719,000 after acquiring an additional 51,592 shares in the last quarter. Institutional investors and hedge funds own 85.82% of the company's stock.

Insider Activity

In related news, SVP Michael A. Hedlund sold 2,500 shares of the firm's stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $64.00, for a total transaction of $160,000.00. Following the completion of the sale, the senior vice president owned 10,627 shares in the company, valued at approximately $680,128. This trade represents a 19.04% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Micah R. Conrad sold 5,000 shares of OneMain stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $62.00, for a total transaction of $310,000.00. Following the completion of the sale, the chief operating officer directly owned 96,250 shares in the company, valued at approximately $5,967,500. This represents a 4.94% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 14,348 shares of company stock valued at $911,576. 0.29% of the stock is owned by company insiders.

OneMain Trading Up 0.1%

Shares of OneMain stock opened at $63.26 on Monday. The business's fifty day simple moving average is $61.24 and its 200 day simple moving average is $57.56. OneMain Holdings, Inc. has a 12 month low of $45.78 and a 12 month high of $71.93. The firm has a market capitalization of $7.28 billion, a P/E ratio of 9.53, a price-to-earnings-growth ratio of 0.48 and a beta of 1.21.

OneMain (NYSE:OMF - Get Free Report) last announced its quarterly earnings data 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. OneMain had a return on equity of 23.49% and a net margin of 13.92%.The firm had revenue of $1.62 billion during the quarter, compared to the consensus estimate of $1.28 billion. During the same quarter in the prior year, the company earned $1.45 EPS. The business's revenue for the quarter was up 6.7% on a year-over-year basis. Analysts predict that OneMain Holdings, Inc. will post 7.11 EPS for the current fiscal year.

OneMain Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Monday, August 10th were given a dividend of $1.05 per share. The ex-dividend date was Monday, August 10th. This represents a $4.20 annualized dividend and a yield of 6.6%. OneMain's dividend payout ratio is presently 63.25%.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the stock. Barclays lowered their target price on shares of OneMain from $61.00 to $60.00 and set an "equal weight" rating on the stock in a report on Tuesday, July 7th. Weiss Ratings restated a "buy (b-)" rating on shares of OneMain in a report on Tuesday, July 7th. Truist Financial upped their price target on OneMain from $70.00 to $71.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. Evercore set a $66.00 price target on OneMain in a research report on Monday, July 6th. Finally, TD Cowen raised their price objective on OneMain from $66.00 to $68.00 and gave the company a "buy" rating in a research note on Tuesday, July 7th. Eight investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $68.40.

OneMain 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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