Investors Purchase High Volume of OneMain Put Options (NYSE:OMF)

Key Points

• OneMain Holdings saw a significant increase in options trading with 4,012 put options acquired, marking a 444% rise from the usual volume.
• JPMorgan Chase & Co. raised its target price for OneMain from $50 to $63, contributing to a consensus target price of $61.50 among analysts.
• The company recently announced a quarterly dividend of $1.04 per share, yielding 7.4%, with a payout ratio of 75.09%.

OneMain Holdings, Inc. (NYSE:OMF - Get Free Report) saw some unusual options trading on Friday. Investors acquired 4,012 put options on the company. This represents an increase of 444% compared to the typical volume of 738 put options.

Analyst Ratings Changes

Several research firms have commented on OMF. JPMorgan Chase & Co. boosted their target price on OneMain from $50.00 to $63.00 and gave the company an "overweight" rating in a research note on Friday, July 11th. Barclays upped their price objective on OneMain from $48.00 to $56.00 and gave the company an "equal weight" rating in a report on Tuesday, July 8th. Finally, Wells Fargo & Company began coverage on OneMain in a report on Monday, August 25th. They set an "equal weight" rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $61.50.

Insider Buying and Selling

In related news, CEO Douglas H. Shulman sold 35,000 shares of OneMain stock in a transaction dated Tuesday, July 29th. The stock was sold at an average price of $59.47, for a total value of $2,081,450.00. Following the completion of the sale, the chief executive officer directly owned 275,100 shares in the company, valued at $16,360,197. This trade represents a 11.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.40% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of OMF. Alpine Bank Wealth Management bought a new position in OneMain during the 1st quarter valued at approximately $27,000. SVB Wealth LLC purchased a new stake in OneMain during the 1st quarter valued at $34,000. BI Asset Management Fondsmaeglerselskab A S purchased a new position in shares of OneMain in the 1st quarter worth $42,000. Headlands Technologies LLC purchased a new position in shares of OneMain in the 1st quarter worth $46,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. boosted its stake in shares of OneMain by 79.4% in the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 820 shares of the financial services provider's stock worth $47,000 after buying an additional 363 shares during the last quarter. Institutional investors own 85.82% of the company's stock.

OneMain Price Performance

Shares of OMF traded down $0.08 during mid-day trading on Friday, hitting $56.32. The stock had a trading volume of 467,812 shares, compared to its average volume of 1,066,774. The firm has a market cap of $6.69 billion, a P/E ratio of 10.16, a PEG ratio of 0.43 and a beta of 1.32. The business has a fifty day moving average price of $59.14 and a 200-day moving average price of $54.06. OneMain has a 52 week low of $38.00 and a 52 week high of $63.24.

OneMain (NYSE:OMF - Get Free Report) last announced its quarterly earnings results on Friday, July 25th. The financial services provider reported $1.45 earnings per share for the quarter, beating the consensus estimate of $1.25 by $0.20. The company had revenue of $1.20 billion during the quarter, compared to analysts' expectations of $1.19 billion. OneMain had a return on equity of 20.65% and a net margin of 12.63%.The firm's quarterly revenue was up 7.1% compared to the same quarter last year. During the same period in the previous year, the business earned $1.02 earnings per share. As a group, research analysts expect that OneMain 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. Investors 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 annualized dividend and a yield of 7.4%. OneMain's dividend payout ratio is currently 75.09%.

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.

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