American Century Companies Inc. Raises Position in OneMain Holdings, Inc. $OMF

Key Points

• American Century Companies increased its stake in OneMain by 3.4% to 1,065,463 shares (about 0.90% of the company), valuing its holding at roughly $60.2 million, while overall institutional ownership sits near 85.8% with other large managers (Vanguard, Brave Warrior, State Street, Norges Bank) also active.
• OneMain beat expectations for the quarter with $1.59 EPS vs. $1.55 expected and $1.61B revenue vs. $1.28B expected, and it recently paid a $1.05 quarterly dividend (annualized $4.20) for a yield of about 7.7% and a payout ratio near 63.9%.
• Insiders have reduced holdings—CEO Douglas Shulman sold 57,500 shares (a ~24.8% drop in his stake) and the COO also sold shares—while analysts show a consensus of "Moderate Buy" with an average price target of $72.11; the stock trades at a P/E of ~8.3 and a market cap of about $6.39 billion.

American Century Companies Inc. increased its stake in OneMain Holdings, Inc. (NYSE:OMF - Free Report) by 3.4% in the third quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 1,065,463 shares of the financial services provider's stock after buying an additional 35,126 shares during the quarter. American Century Companies Inc. owned about 0.90% of OneMain worth $60,156,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also recently bought and sold shares of OMF. Vanguard Group Inc. grew its position in OneMain by 2.1% in the third quarter. Vanguard Group Inc. now owns 11,970,406 shares of the financial services provider's stock valued at $675,849,000 after acquiring an additional 249,785 shares in the last quarter. Brave Warrior Advisors LLC boosted its stake in shares of OneMain by 7.2% in the second quarter. Brave Warrior Advisors LLC now owns 7,870,085 shares of the financial services provider's stock valued at $448,595,000 after purchasing an additional 526,449 shares during the period. Geode Capital Management LLC grew its holdings in OneMain by 0.7% during the 2nd quarter. Geode Capital Management LLC now owns 2,276,830 shares of the financial services provider's stock valued at $130,075,000 after purchasing an additional 16,469 shares in the last quarter. State Street Corp grew its holdings in OneMain by 4.0% during the 2nd quarter. State Street Corp now owns 2,162,097 shares of the financial services provider's stock valued at $123,240,000 after purchasing an additional 82,204 shares in the last quarter. Finally, Norges Bank acquired a new position in OneMain in the 2nd quarter worth $85,541,000. 85.82% of the stock is owned by institutional investors and hedge funds.

OneMain Stock Performance

OneMain stock opened at $54.52 on Thursday. OneMain Holdings, Inc. has a 1 year low of $38.00 and a 1 year high of $71.93. The firm's 50-day moving average is $63.08 and its 200-day moving average is $61.28. The company has a market cap of $6.39 billion, a P/E ratio of 8.30, a PEG ratio of 0.32 and a beta of 1.34.

OneMain (NYSE:OMF - Get Free Report) last released its quarterly earnings data on Thursday, February 5th. The financial services provider reported $1.59 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.55 by $0.04. The business had revenue of $1.61 billion during the quarter, compared to analyst estimates of $1.28 billion. OneMain had a return on equity of 23.76% and a net margin of 14.35%.During the same quarter in the previous year, the firm posted $1.16 EPS. As a group, sell-side analysts predict that OneMain Holdings, Inc. will post 6.46 earnings per share for the current year.

OneMain Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, February 23rd. Investors of record on Tuesday, February 17th were given a $1.05 dividend. This represents a $4.20 dividend on an annualized basis and a yield of 7.7%. The ex-dividend date was Tuesday, February 17th. OneMain's dividend payout ratio is currently 63.93%.

Analysts Set New Price Targets

OMF has been the subject of several recent analyst reports. TD Cowen restated a "buy" rating on shares of OneMain in a research note on Thursday, January 8th. Barclays set a $71.00 price target on OneMain in a report on Friday, February 6th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of OneMain in a research report on Monday, December 29th. Citizens Jmp set a $68.00 price target on shares of OneMain in a research report on Monday, November 24th. Finally, Wall Street Zen lowered shares of OneMain from a "buy" rating to a "hold" rating in a research note on Sunday, January 18th. Eight equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $72.11.

Insider Activity

In related news, CEO Douglas H. Shulman sold 57,500 shares of the business's stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $68.41, for a total transaction of $3,933,575.00. Following the sale, the chief executive officer owned 174,100 shares of the company's stock, valued at $11,910,181. The trade was a 24.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Micah R. Conrad sold 5,000 shares of the company's stock in a transaction that occurred on Thursday, February 26th. The stock was sold at an average price of $58.00, for a total value of $290,000.00. Following the completion of the sale, the chief operating officer owned 106,250 shares of the company's stock, valued at $6,162,500. This trade represents a 4.49% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.40% of the stock is currently owned by company insiders.

About OneMain

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.

Want to see what other hedge funds are holding OMF? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for OneMain Holdings, Inc. (NYSE:OMF - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.