Northland Securities Forecasts Lower Earnings for OneMain

Key Points

• Northland Securities lowered OneMain’s Q3 2026 EPS forecast to $1.85 from $2.02, signaling expectations for weaker near-term earnings.
• OneMain’s latest quarter beat EPS expectations, reporting $1.31 versus the $1.26 consensus, but revenue of $1.09 billion fell well short of the $1.28 billion forecast and EPS declined from $1.45 a year earlier.
• The company declared a quarterly dividend of $1.05 per share, equivalent to a $4.20 annualized payout and roughly a 6.7% yield; analysts maintain a “Moderate Buy” consensus with an average price target of $68.40.

OneMain Holdings, Inc. (NYSE:OMF - Free Report) - Northland Securities cut their Q3 2026 earnings per share estimates for shares of OneMain in a report issued on Wednesday, July 29th. Northland Securities analyst M. Grondahl now forecasts that the financial services provider will post earnings of $1.85 per share for the quarter, down from their previous forecast of $2.02. The consensus estimate for OneMain's current full-year earnings is $7.12 per share.

OneMain (NYSE:OMF - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $1.31 EPS for the quarter, beating the consensus estimate of $1.26 by $0.05. OneMain had a return on equity of 23.49% and a net margin of 13.92%.The firm had revenue of $1.09 billion during the quarter, compared to the consensus estimate of $1.28 billion. During the same period in the prior year, the business earned $1.45 EPS. The firm's revenue was up 6.7% compared to the same quarter last year.

Several other equities research analysts have also recently commented on OMF. Truist Financial upped their price target on OneMain from $70.00 to $71.00 and gave the stock a "buy" rating in a research note on Thursday. TD Cowen lifted their price objective on shares of OneMain from $66.00 to $68.00 and gave the company a "buy" rating in a research report on Tuesday, July 7th. Citigroup reissued a "market outperform" rating on shares of OneMain in a research note on Thursday. Evercore set a $66.00 price objective on shares of OneMain in a research report on Monday, July 6th. Finally, Barclays reduced their target price on shares of OneMain from $61.00 to $60.00 and set an "equal weight" rating for the company in a research note on Tuesday, July 7th. Eight investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $68.40.

OneMain Trading Up 0.0%

Shares of OMF stock opened at $62.59 on Monday. The business's 50 day moving average is $58.34 and its two-hundred day moving average is $57.63. OneMain has a twelve month low of $45.78 and a twelve month high of $71.93. The company has a market capitalization of $7.20 billion, a P/E ratio of 9.43, a price-to-earnings-growth ratio of 0.48 and a beta of 1.21.

Institutional Trading of OneMain

Several hedge funds and other institutional investors have recently added to or reduced their stakes in OMF. Allspring Global Investments Holdings LLC increased its position in OneMain by 24.1% during the fourth quarter. Allspring Global Investments Holdings LLC now owns 259,803 shares of the financial services provider's stock worth $17,945,000 after purchasing an additional 50,521 shares during the last quarter. Kingsview Wealth Management LLC purchased a new position in OneMain during the fourth quarter worth approximately $5,310,000. Universal Beteiligungs und Servicegesellschaft mbH boosted its holdings in shares of OneMain by 39.0% in the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 126,492 shares of the financial services provider's stock valued at $8,553,000 after purchasing an additional 35,466 shares during the last quarter. Financiere des Professionnels Fonds d investissement inc. acquired a new position in shares of OneMain in the 1st quarter valued at $1,638,000. Finally, Illinois Municipal Retirement Fund grew its stake in shares of OneMain by 37.6% during the 1st quarter. Illinois Municipal Retirement Fund now owns 104,527 shares of the financial services provider's stock valued at $5,591,000 after buying an additional 28,536 shares during the period. Hedge funds and other institutional investors own 85.82% of the company's stock.

Insider Buying and Selling at OneMain

In related news, COO Micah R. Conrad sold 5,000 shares of the company's stock in a transaction on Monday, June 29th. The stock was sold at an average price of $62.00, for a total value of $310,000.00. Following the completion of the transaction, the chief operating officer directly owned 96,250 shares in the company, valued at approximately $5,967,500. This represents a 4.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Michael A. Hedlund sold 2,500 shares of the stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $64.00, for a total value of $160,000.00. Following the transaction, the senior vice president owned 10,627 shares in the company, valued at $680,128. This trade represents a 19.04% decrease in their ownership of the stock. 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. Insiders have sold 9,348 shares of company stock worth $584,576 in the last 90 days. Insiders own 0.29% of the company's stock.

OneMain Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Monday, August 10th will be issued a dividend of $1.05 per share. The ex-dividend date is Monday, August 10th. This represents a $4.20 annualized dividend and a dividend yield of 6.7%. OneMain's dividend payout ratio (DPR) is 63.25%.

Key Stories Impacting OneMain

Here are the key news stories impacting OneMain this week:

• Positive Sentiment: OneMain reported second-quarter adjusted EPS of $1.31, topping the $1.26 consensus estimate. Net interest income and other revenue increased year over year, while receivables growth remained strong. OneMain Holdings Q2 Earnings in Line, Stock Gains as NII Rises Y/Y
• Positive Sentiment: Truist Financial raised its price target from $70 to $71 and maintained a “buy” rating, while Citizens JMP increased its target from $68 to $70 and kept a “market outperform” rating. These targets imply meaningful upside from recent trading levels. Truist Financial and Citizens JMP price-target updates
• Positive Sentiment: OneMain declared a quarterly dividend of $1.05 per share, payable August 14 to shareholders of record August 10. The dividend represents an annualized yield of approximately 6.6%, supporting the stock’s income appeal.
• Neutral Sentiment: Analyst views remain mixed, with some firms retaining favorable ratings while estimates reflect uncertainty around future loan performance and profitability. Analysts’ Opinions Are Mixed on These Financial Stocks
• Negative Sentiment: Revenue of $1.09 billion fell short of the $1.28 billion analyst forecast, and quarterly EPS declined from $1.45 a year earlier. Rising credit costs also weighed on profit, highlighting risks from borrower delinquencies and loan losses.
• Negative Sentiment: Northland Securities lowered its FY2026 EPS estimate to $7.10 from $7.39 and cut its Q4 2026 forecast to $2.00 from $2.11. It also reduced its Q1 2027 estimate to $1.82 from $1.84, although it modestly raised its Q3 and Q4 2027 forecasts. The revisions may be pressuring sentiment because they point to near-term earnings moderation.

About OneMain

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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