Wellington Management Group LLP Lowers Stake in OneMain Holdings, Inc. $OMF

Key Points

• Wellington Management Group LLP substantially reduced its stake in OneMain Holdings by 63.4%, selling over 1.4 million shares, leaving it with approximately 0.69% ownership valued at $40.2 million.
• OneMain reported a quarterly earnings per share (EPS) of $1.45, exceeding analyst expectations of $1.25, while its revenue increased by 7.1% year-over-year to $1.20 billion.
• The company announced a quarterly dividend of $1.04, yielding 6.9% annually, with a dividend payout ratio of 75.09%.

Wellington Management Group LLP lessened its position in OneMain Holdings, Inc. (NYSE:OMF - Free Report) by 63.4% in the first quarter, according to its most recent disclosure with the SEC. The firm owned 822,398 shares of the financial services provider's stock after selling 1,427,364 shares during the period. Wellington Management Group LLP owned approximately 0.69% of OneMain worth $40,199,000 as of its most recent filing with the SEC.

A number of other hedge funds have also recently added to or reduced their stakes in the company. Nuveen LLC bought a new position in shares of OneMain in the first quarter valued at approximately $48,282,000. Azora Capital LP bought a new position in OneMain in the 4th quarter worth about $39,650,000. Certuity LLC boosted its holdings in shares of OneMain by 86.0% in the 1st quarter. Certuity LLC now owns 930,012 shares of the financial services provider's stock worth $45,459,000 after purchasing an additional 430,011 shares in the last quarter. Point72 Asset Management L.P. purchased a new position in shares of OneMain in the 4th quarter worth about $15,566,000. Finally, Royal Bank of Canada boosted its holdings in OneMain by 47.5% during the 4th quarter. Royal Bank of Canada now owns 901,176 shares of the financial services provider's stock valued at $46,979,000 after acquiring an additional 290,323 shares during the period. Institutional investors and hedge funds own 85.82% of the company's stock.

Analysts Set New Price Targets

A number of research firms have recently commented on OMF. Wells Fargo & Company began coverage on OneMain in a research note on Monday. They issued an "equal weight" rating for the company. JPMorgan Chase & Co. lifted their target price on OneMain from $50.00 to $63.00 and gave the stock an "overweight" rating in a report on Friday, July 11th. Barclays lifted their price objective on OneMain from $48.00 to $56.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 8th. Finally, JMP Securities reiterated a "market outperform" rating and set a $65.00 target price on shares of OneMain in a research report on Wednesday, April 30th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $61.50.

OneMain Trading Up 0.6%

Shares of NYSE OMF traded up $0.36 during trading hours on Thursday, reaching $61.72. The stock had a trading volume of 423,982 shares, compared to its average volume of 1,087,888. The firm has a market cap of $7.34 billion, a price-to-earnings ratio of 11.13, a P/E/G ratio of 0.48 and a beta of 1.29. The business's fifty day moving average price is $57.73 and its two-hundred day moving average price is $52.62. OneMain Holdings, Inc. has a 52-week low of $38.00 and a 52-week high of $62.02.

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

OneMain Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, August 13th. Shareholders of record on Monday, August 4th were issued a dividend of $1.04 per share. The ex-dividend date was Monday, August 4th. This represents a $4.16 dividend on an annualized basis and a yield of 6.7%. OneMain's dividend payout ratio is currently 75.09%.

Insider Buying and Selling at OneMain

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

About OneMain

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.