Bank of America Corp DE Purchases 456,470 Shares of OneMain Holdings, Inc. $OMF

Key Points

• Bank of America increased its OneMain Holdings stake by 117.8% in the first quarter, buying 456,470 shares for a total holding of 843,912 shares valued at approximately $45.1 million. Institutional investors and hedge funds collectively own 85.82% of OMF.
• Analysts maintain a generally positive view, with eight Buy, three Hold and one Sell rating, producing a “Moderate Buy” consensus and an average price target of $68.40.
• OneMain reported quarterly EPS of $1.31, beating estimates of $1.26, while revenue rose 6.7% year over year to $1.62 billion. The company also declared a $1.05 quarterly dividend, equivalent to a 6.5% annualized yield.

Bank of America Corp DE grew its holdings in shares of OneMain Holdings, Inc. (NYSE:OMF - Free Report) by 117.8% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 843,912 shares of the financial services provider's stock after buying an additional 456,470 shares during the quarter. Bank of America Corp DE owned 0.73% of OneMain worth $45,141,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Dimensional Fund Advisors LP increased its holdings in OneMain by 7.6% during 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 purchasing an additional 308,370 shares in the last quarter. Janus Henderson Group PLC raised 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 worth $146,030,000 after purchasing an additional 195,591 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of OneMain by 0.7% in 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 purchasing an additional 15,941 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in shares of OneMain by 17.6% in 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 purchasing an additional 345,269 shares in the last quarter. Finally, State Street Corp boosted 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 valued at $155,719,000 after buying an additional 51,592 shares during the last quarter. Institutional investors and hedge funds own 85.82% of the company's stock.

Analysts Set New Price Targets

OMF has been the subject of a number of analyst reports. Deutsche Bank Aktiengesellschaft reissued a "buy" rating on shares of OneMain in a research report on Friday, July 10th. Truist Financial upped their target price on shares of OneMain from $70.00 to $71.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. Barclays lowered their target price on shares of OneMain from $61.00 to $60.00 and set an "equal weight" rating for the company in a report on Tuesday, July 7th. BTIG Research reissued a "neutral" rating on shares of OneMain in a research report on Thursday, April 16th. Finally, Evercore set a $66.00 price objective on shares of OneMain in a research report on Monday, July 6th. Eight investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $68.40.

Insider Buying and Selling at OneMain

In other OneMain news, SVP Michael A. Hedlund sold 2,500 shares of the firm's stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $64.00, for a total transaction of $160,000.00. Following the sale, the senior vice president owned 10,627 shares in the company, valued at $680,128. This trade represents a 19.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 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 value of $310,000.00. Following the sale, the chief operating officer directly owned 96,250 shares of the company's stock, valued at approximately $5,967,500. This trade 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. Insiders sold 14,348 shares of company stock valued at $911,576 over the last quarter. 0.29% of the stock is owned by company insiders.

OneMain Price Performance

Shares of NYSE OMF opened at $64.64 on Thursday. The stock has a market capitalization of $7.44 billion, a PE ratio of 9.73, a P/E/G ratio of 0.49 and a beta of 1.21. OneMain Holdings, Inc. has a one year low of $45.78 and a one year high of $71.93. The business's fifty day moving average price is $60.00 and its 200-day moving average price is $57.60.

OneMain (NYSE:OMF - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $1.31 EPS for the quarter, topping the consensus estimate of $1.26 by $0.05. OneMain had a net margin of 13.92% and a return on equity of 23.49%. The company had revenue of $1.62 billion during the quarter, compared to the consensus estimate of $1.28 billion. During the same period last year, the firm earned $1.45 EPS. OneMain's revenue for the quarter was up 6.7% on a year-over-year basis. As a group, equities analysts expect that OneMain Holdings, Inc. will post 7.12 EPS for the current fiscal year.

OneMain Announces Dividend

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

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.

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