Hsbc Holdings PLC Cuts Stock Holdings in OneMain Holdings, Inc. $OMF

Key Points

• HSBC Holdings PLC cut its stake in OneMain Holdings by 80% in the fourth quarter, selling 167,944 shares and leaving it with 42,049 shares valued at about $2.84 million.
• OneMain reported strong quarterly results, with EPS of $1.95 beating estimates and revenue of $1.58 billion topping expectations; the company also posted 6.7% year-over-year revenue growth.
• The company declared a quarterly dividend of $1.05 per share, annualizing to $4.20 and implying a 7.1% yield, while analysts currently rate the stock a “Moderate Buy” with an average target price of $67.80.

Hsbc Holdings PLC lowered its position in shares of OneMain Holdings, Inc. (NYSE:OMF - Free Report) by 80.0% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 42,049 shares of the financial services provider's stock after selling 167,944 shares during the quarter. Hsbc Holdings PLC's holdings in OneMain were worth $2,843,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in OneMain in the 1st quarter valued at $2,037,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in OneMain by 2.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 442,598 shares of the financial services provider's stock worth $21,634,000 after purchasing an additional 9,067 shares during the last quarter. Focus Partners Wealth grew its holdings in shares of OneMain by 101.8% during the first quarter. Focus Partners Wealth now owns 8,737 shares of the financial services provider's stock worth $427,000 after buying an additional 4,407 shares in the last quarter. Prudential Financial Inc. grew its holdings in shares of OneMain by 32.9% during the second quarter. Prudential Financial Inc. now owns 9,492 shares of the financial services provider's stock worth $541,000 after buying an additional 2,350 shares in the last quarter. Finally, Russell Investments Group Ltd. raised its position in shares of OneMain by 26.2% in the second quarter. Russell Investments Group Ltd. now owns 19,644 shares of the financial services provider's stock valued at $1,119,000 after buying an additional 4,084 shares during the last quarter. Hedge funds and other institutional investors own 85.82% of the company's stock.

OneMain Trading Up 0.8%

Shares of OMF opened at $59.29 on Friday. 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 $6.85 billion, a P/E ratio of 8.82, a P/E/G ratio of 0.44 and a beta of 1.22. The firm has a 50-day moving average price of $56.39 and a 200 day moving average price of $58.58.

OneMain (NYSE:OMF - Get Free Report) last issued its earnings results on Friday, May 1st. The financial services provider reported $1.95 EPS for the quarter, topping analysts' consensus estimates of $1.86 by $0.09. The company had revenue of $1.58 billion for the quarter, compared to the consensus estimate of $1.27 billion. OneMain had a net margin of 14.38% and a return on equity of 24.24%. OneMain's quarterly revenue was up 6.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.72 earnings per share. Equities research analysts predict that OneMain Holdings, Inc. will post 7.23 earnings per share for the current fiscal year.

OneMain Announces Dividend

The company 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 annualized dividend and a dividend yield of 7.1%. The ex-dividend date of this dividend was Monday, May 11th. OneMain's payout ratio is presently 62.50%.

Analysts Set New Price Targets

A number of research firms recently weighed in on OMF. Wells Fargo & Company lowered their price target on shares of OneMain from $70.00 to $65.00 and set an "equal weight" rating on the stock in a research report on Thursday, April 9th. BTIG Research reissued a "neutral" rating on shares of OneMain in a research note on Thursday, April 16th. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of OneMain in a report on Friday. Royal Bank Of Canada dropped their price target on OneMain from $73.00 to $70.00 and set an "outperform" rating for the company in a research report on Monday, May 4th. Finally, Barclays cut their price target on OneMain from $61.00 to $60.00 and set an "equal weight" rating for the company in a report on Tuesday. Eight equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $67.80.

Insider Activity at OneMain

In other OneMain news, COO Micah R. Conrad sold 5,000 shares of the firm's stock in a transaction on 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 owned 96,250 shares of the company's stock, valued at $5,967,500. This trade represents a 4.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Michael A. Hedlund sold 1,848 shares of OneMain stock in a transaction on Monday, June 29th. The shares were sold at an average price of $62.00, for a total value of $114,576.00. Following the completion of the sale, the senior vice president owned 13,127 shares in the company, valued at $813,874. This represents a 12.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 11,848 shares of company stock worth $724,576. Corporate insiders own 0.29% of the company's stock.

OneMain Company 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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