Hsbc Holdings PLC Reduces Position 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 worth about $2.84 million.
• OneMain reported stronger-than-expected quarterly results, posting EPS of $1.95 versus estimates of $1.86 and revenue of $1.58 billion, which topped expectations and rose 6.7% year over year.
• The company continues to offer a sizable dividend, paying a quarterly dividend of $1.05 per share, or $4.20 annualized, for a yield of 6.9%.

Hsbc Holdings PLC reduced its holdings in OneMain Holdings, Inc. (NYSE:OMF - Free Report) by 80.0% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 42,049 shares of the financial services provider's stock after selling 167,944 shares during the period. Hsbc Holdings PLC's holdings in OneMain were worth $2,843,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in OneMain in the 1st quarter valued at about $2,037,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of OneMain by 2.1% in the first 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 valued at $21,634,000 after purchasing an additional 9,067 shares in the last quarter. Focus Partners Wealth grew its position in shares of OneMain by 101.8% in the first quarter. Focus Partners Wealth now owns 8,737 shares of the financial services provider's stock valued at $427,000 after purchasing an additional 4,407 shares in the last quarter. Prudential Financial Inc. increased its holdings in shares of OneMain by 32.9% in the second quarter. Prudential Financial Inc. now owns 9,492 shares of the financial services provider's stock valued at $541,000 after purchasing an additional 2,350 shares during the last quarter. Finally, Russell Investments Group Ltd. increased its holdings 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 purchasing an additional 4,084 shares during the last quarter. 85.82% of the stock is currently owned by institutional investors and hedge funds.

OneMain Price Performance

Shares of OMF opened at $60.55 on Monday. OneMain Holdings, Inc. has a 1-year low of $45.78 and a 1-year high of $71.93. The stock has a market cap of $7.00 billion, a PE ratio of 9.01, a P/E/G ratio of 0.45 and a beta of 1.24. The firm has a 50-day simple moving average of $56.23 and a two-hundred day simple moving average of $59.08.

OneMain (NYSE:OMF - Get Free Report) last released its quarterly earnings results on Friday, May 1st. The financial services provider reported $1.95 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.86 by $0.09. OneMain had a net margin of 14.38% and a return on equity of 24.24%. The business had revenue of $1.58 billion for the quarter, compared to the consensus estimate of $1.27 billion. During the same period in the previous year, the firm earned $1.72 EPS. The business's revenue was up 6.7% on a year-over-year basis. As a group, sell-side analysts expect that OneMain Holdings, Inc. will post 7.35 earnings per share for the current fiscal year.

OneMain Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Monday, May 11th were given a $1.05 dividend. The ex-dividend date of this dividend was Monday, May 11th. This represents a $4.20 dividend on an annualized basis and a yield of 6.9%. OneMain's payout ratio is presently 62.50%.

Analyst Upgrades and Downgrades

OMF has been the topic of a number of recent research reports. Barclays lowered their price objective on OneMain from $62.00 to $61.00 and set an "equal weight" rating on the stock in a research note on Monday, May 4th. Wells Fargo & Company reduced their price target on OneMain from $70.00 to $65.00 and set an "equal weight" rating on the stock in a report on Thursday, April 9th. Evercore set a $55.00 price target on shares of OneMain in a research report on Tuesday, March 17th. TD Cowen reissued a "buy" rating on shares of OneMain in a report on Monday, May 4th. Finally, JPMorgan Chase & Co. cut their price objective on shares of OneMain from $63.00 to $55.00 and set an "underweight" rating for the company in a research report on Thursday, April 9th. Eight investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, OneMain presently has an average rating of "Moderate Buy" and an average target price of $68.30.

Insider Transactions at OneMain

In other OneMain news, COO Micah R. Conrad sold 5,000 shares of the company's stock in a transaction 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 transaction, the chief operating officer directly owned 101,250 shares in the company, valued at $6,075,000. This represents a 4.71% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.29% of the stock is currently owned by insiders.

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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