Royal Bank of Canada Raises Stock Holdings in OneMain Holdings, Inc. $OMF

Key Points

• Royal Bank of Canada increased its holdings in OneMain Holdings, Inc. by 11.1%, owning 1,000,775 shares valued at approximately $48.9 million as reported in their recent 13F filing.
• CEO Douglas H. Shulman sold 35,000 shares of OneMain stock, reducing his ownership by 11.29%, while COO Micah R. Conrad also sold shares, indicating significant insider selling activity.
• OneMain reported earnings of $1.45 per share, exceeding estimates, with a revenue of $1.20 billion for the quarter, representing a 7.1% year-over-year increase.

Royal Bank of Canada boosted its position in OneMain Holdings, Inc. (NYSE:OMF - Free Report) by 11.1% in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,000,775 shares of the financial services provider's stock after buying an additional 99,599 shares during the period. Royal Bank of Canada owned approximately 0.84% of OneMain worth $48,919,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Trexquant Investment LP bought a new stake in OneMain in the 1st quarter valued at about $7,462,000. Penn Capital Management Company LLC increased its position in shares of OneMain by 39.3% during the first quarter. Penn Capital Management Company LLC now owns 247,325 shares of the financial services provider's stock worth $12,121,000 after acquiring an additional 69,730 shares in the last quarter. SVB Wealth LLC bought a new stake in shares of OneMain during the first quarter worth about $34,000. Fiduciary Management Inc. WI increased its position in shares of OneMain by 21.8% during the first quarter. Fiduciary Management Inc. WI now owns 2,647,875 shares of the financial services provider's stock worth $129,428,000 after acquiring an additional 474,161 shares in the last quarter. Finally, Channing Capital Management LLC increased its position in shares of OneMain by 27.2% during the first quarter. Channing Capital Management LLC now owns 98,378 shares of the financial services provider's stock worth $4,809,000 after acquiring an additional 21,066 shares in the last quarter. 85.82% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several equities research analysts have recently commented on OMF shares. JPMorgan Chase & Co. boosted their target price on shares of OneMain from $50.00 to $63.00 and gave the stock an "overweight" rating in a research report on Friday, July 11th. Wells Fargo & Company started coverage on shares of OneMain in a research report on Monday, August 25th. They set an "equal weight" rating for the company. Finally, Barclays boosted their target price on shares of OneMain from $48.00 to $56.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 8th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $61.50.

OneMain Stock Performance

NYSE:OMF traded down $0.21 during trading on Wednesday, reaching $60.64. The company's stock had a trading volume of 359,890 shares, compared to its average volume of 1,072,668. The firm has a market cap of $7.21 billion, a price-to-earnings ratio of 10.96, a price-to-earnings-growth ratio of 0.48 and a beta of 1.30. The firm has a 50 day moving average of $58.80 and a 200-day moving average of $52.94. OneMain Holdings, Inc. has a 12 month low of $38.00 and a 12 month high of $63.24.

OneMain (NYSE:OMF - Get Free Report) last posted its quarterly earnings results on Friday, July 25th. The financial services provider reported $1.45 EPS for the quarter, topping analysts' consensus estimates of $1.25 by $0.20. OneMain had a net margin of 12.63% and a return on equity of 20.65%. The company had revenue of $1.20 billion for the quarter, compared to analysts' expectations of $1.19 billion. During the same quarter in the previous year, the firm posted $1.02 EPS. OneMain's revenue was up 7.1% on a year-over-year basis. Equities research analysts forecast that OneMain Holdings, Inc. will post 6.46 earnings per share for the current fiscal year.

OneMain Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, August 13th. Investors of record on Monday, August 4th were issued a $1.04 dividend. The ex-dividend date of this dividend was Monday, August 4th. This represents a $4.16 annualized dividend and a yield of 6.9%. OneMain's dividend payout ratio (DPR) is 75.09%.

Insider Activity at OneMain

In other news, COO Micah R. Conrad sold 4,000 shares of the firm's stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $58.02, for a total value of $232,080.00. Following the completion of the transaction, the chief operating officer directly owned 101,007 shares in the company, valued at approximately $5,860,426.14. This trade represents a 3.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Douglas H. Shulman sold 35,000 shares of the firm's stock in a transaction that occurred on Tuesday, July 29th. The shares were sold at an average price of $59.47, for a total transaction of $2,081,450.00. Following the completion of the transaction, the chief executive officer owned 275,100 shares of the company's stock, valued at $16,360,197. This trade represents a 11.29% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 65,000 shares of company stock valued at $3,715,340. 0.40% of the stock is owned by insiders.

OneMain Company Profile

OneMain Holdings, Inc, a financial service holding company, engages in the consumer finance and insurance businesses in the United States. It originates, underwrites, and services personal loans secured by automobiles, other titled collateral, or unsecured. The company also offers credit cards; optional credit insurance products, including life, disability, and involuntary unemployment insurance; optional non-credit insurance; guaranteed asset protection coverage as a waiver product or insurance; and membership plans.