Brandes Investment Partners LP Decreases Position in OneMain Holdings, Inc. $OMF

Key Points

• Brandes Investment Partners sharply reduced its OneMain Holdings stake by 93.9% in the fourth quarter, selling more than 1.8 million shares and leaving it with about 116,733 shares worth roughly $7.9 million.
• OneMain reported better-than-expected quarterly results, posting EPS of $1.95 versus $1.86 expected and revenue of $1.58 billion versus $1.27 billion expected, while also maintaining solid profitability metrics.
• The company recently paid a $1.05 quarterly dividend, implying an annualized yield of about 7.7%, and analysts currently view the stock as a Moderate Buy with a consensus price target of $68.30.

Brandes Investment Partners LP decreased its stake in OneMain Holdings, Inc. (NYSE:OMF - Free Report) by 93.9% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 116,733 shares of the financial services provider's stock after selling 1,810,574 shares during the period. Brandes Investment Partners LP owned approximately 0.10% of OneMain worth $7,885,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently modified their holdings of the stock. Core Wealth Advisors LLC acquired a new position in shares of OneMain in the fourth quarter worth about $31,000. Atlantic Union Bankshares Corp acquired a new position in shares of OneMain in the fourth quarter worth about $36,000. Spire Wealth Management lifted its stake in shares of OneMain by 83.2% in the fourth quarter. Spire Wealth Management now owns 700 shares of the financial services provider's stock worth $47,000 after acquiring an additional 318 shares in the last quarter. Activest Wealth Management lifted its stake in shares of OneMain by 37.6% in the fourth quarter. Activest Wealth Management now owns 794 shares of the financial services provider's stock worth $54,000 after acquiring an additional 217 shares in the last quarter. Finally, Whittier Trust Co. acquired a new position in shares of OneMain in the fourth quarter worth about $58,000. Hedge funds and other institutional investors own 85.82% of the company's stock.

OneMain Stock Down 2.4%

Shares of NYSE OMF opened at $54.48 on Thursday. The stock's 50 day moving average price is $55.57 and its two-hundred day moving average price is $59.45. OneMain Holdings, Inc. has a 52-week low of $45.78 and a 52-week high of $71.93. The stock has a market capitalization of $6.29 billion, a P/E ratio of 8.11, a PEG ratio of 0.41 and a beta of 1.24.

OneMain (NYSE:OMF - Get Free Report) last announced its quarterly earnings data on Friday, May 1st. The financial services provider reported $1.95 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.86 by $0.09. The firm had revenue of $1.58 billion for the quarter, compared to analysts' expectations of $1.27 billion. OneMain had a return on equity of 24.24% and a net margin of 14.38%.OneMain's revenue for the quarter was up 6.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.72 earnings per share. On average, analysts anticipate that OneMain Holdings, Inc. will post 7.38 EPS for the current year.

OneMain Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Monday, May 11th were given a dividend of $1.05 per share. This represents a $4.20 dividend on an annualized basis and a dividend yield of 7.7%. The ex-dividend date was Monday, May 11th. OneMain's dividend payout ratio is presently 62.50%.

Wall Street Analysts Forecast Growth

Several research firms recently commented on OMF. Royal Bank Of Canada cut their price target on OneMain from $73.00 to $70.00 and set an "outperform" rating on the stock in a research note on Monday, May 4th. JPMorgan Chase & Co. cut their price target on OneMain from $63.00 to $55.00 and set an "underweight" rating on the stock in a research note on Thursday, April 9th. Deutsche Bank Aktiengesellschaft cut their price target on OneMain from $81.00 to $80.00 and set a "buy" rating on the stock in a research note on Monday, May 4th. Evercore set a $55.00 price target on OneMain in a research note on Tuesday, March 17th. Finally, BTIG Research restated a "neutral" rating on shares of OneMain in a research note on Thursday, April 16th. Eight investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $68.30.

Insider Buying and Selling at OneMain

In other news, COO Micah R. Conrad sold 5,000 shares of the stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $60.00, for a total transaction of $300,000.00. Following the sale, the chief operating officer directly owned 101,250 shares in the company, valued at approximately $6,075,000. This represents a 4.71% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.29% of the company's stock.

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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