Certuity LLC Grows Stake in OneMain Holdings, Inc. $OMF

Key Points

• Certuity LLC raised its stake in OneMain by 107.6% in Q3 to 1,930,792 shares (about $109M), representing roughly 1.64% of the company and making OneMain its fourth-largest holding.
• OneMain beat quarterly expectations with $1.59 EPS (vs. $1.55 est.) and $1.61B in revenue, and the stock carries a consensus analyst rating of "Moderate Buy" with a $72.11 target.
• The company pays a quarterly dividend of $1.05 (annualized $4.20) — an approximately 8.0% yield with a ~63.9% payout ratio — while insiders (including the COO and CEO) have recently reduced their holdings via share sales.

Certuity LLC raised its stake in OneMain Holdings, Inc. (NYSE:OMF - Free Report) by 107.6% in the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 1,930,792 shares of the financial services provider's stock after purchasing an additional 1,000,654 shares during the quarter. OneMain makes up about 5.4% of Certuity LLC's portfolio, making the stock its 4th biggest holding. Certuity LLC owned 1.64% of OneMain worth $109,013,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also recently made changes to their positions in the stock. Vanguard Group Inc. boosted its holdings in shares of OneMain by 2.1% in the 3rd quarter. Vanguard Group Inc. now owns 11,970,406 shares of the financial services provider's stock valued at $675,849,000 after buying an additional 249,785 shares during the last quarter. Capital International Investors increased its holdings in OneMain by 0.8% during the third quarter. Capital International Investors now owns 10,376,590 shares of the financial services provider's stock worth $585,868,000 after buying an additional 82,202 shares during the last quarter. Brave Warrior Advisors LLC raised its position in OneMain by 7.2% during the second quarter. Brave Warrior Advisors LLC now owns 7,870,085 shares of the financial services provider's stock worth $448,595,000 after acquiring an additional 526,449 shares in the last quarter. Dimensional Fund Advisors LP raised its position in OneMain by 1.6% during the third quarter. Dimensional Fund Advisors LP now owns 3,980,031 shares of the financial services provider's stock worth $224,723,000 after acquiring an additional 63,774 shares in the last quarter. Finally, Geode Capital Management LLC lifted its stake in OneMain by 0.7% in the second quarter. Geode Capital Management LLC now owns 2,276,830 shares of the financial services provider's stock valued at $130,075,000 after acquiring an additional 16,469 shares during the last quarter. Institutional investors and hedge funds own 85.82% of the company's stock.

Insider Buying and Selling

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

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on OMF. TD Cowen restated a "buy" rating on shares of OneMain in a research note on Thursday, January 8th. Citizens Jmp set a $68.00 target price on shares of OneMain in a research note on Monday, November 24th. Wall Street Zen cut OneMain from a "buy" rating to a "hold" rating in a report on Sunday, January 18th. Evercore set a $75.00 price target on OneMain in a research report on Tuesday, January 6th. Finally, Truist Financial cut their price objective on OneMain from $75.00 to $73.00 and set a "buy" rating for the company in a research report on Friday, February 6th. Eight analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, OneMain currently has a consensus rating of "Moderate Buy" and a consensus target price of $72.11.

OneMain Stock Performance

NYSE OMF opened at $52.62 on Friday. The stock has a market cap of $6.16 billion, a PE ratio of 8.01, a P/E/G ratio of 0.39 and a beta of 1.34. The firm has a 50-day moving average of $61.33 and a 200-day moving average of $61.07. OneMain Holdings, Inc. has a 52-week low of $38.00 and a 52-week high of $71.93.

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

OneMain Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, February 23rd. Stockholders of record on Tuesday, February 17th were paid a dividend of $1.05 per share. The ex-dividend date was Tuesday, February 17th. This represents a $4.20 dividend on an annualized basis and a dividend yield of 8.0%. OneMain's dividend payout ratio (DPR) is 63.93%.

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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