Northland Securities Forecasts Weaker Earnings for OneMain

Key Points

• Northland Securities lowered its Q2 2026 EPS estimate for OneMain to $1.30 from $1.72, while also trimming its FY2026 forecast to $7.39 per share. The cut signals a weaker near-term earnings outlook for the consumer finance company.
• Despite the downgrade, Northland kept a relatively constructive longer-term view, projecting Q3 2026 EPS of $2.02 and FY2027 EPS of $8.30. That is above the current Street consensus of $7.19 for full-year earnings.
• OneMain recently beat last quarter’s earnings and revenue estimates, posting $1.95 EPS on $1.58 billion in revenue. The stock also offers a high dividend yield of about 7.0%, which may continue to support investor interest.

OneMain Holdings, Inc. (NYSE:OMF - Free Report) - Northland Securities cut their Q2 2026 EPS estimates for shares of OneMain in a research report issued on Monday, July 20th. Northland Securities analyst M. Grondahl now forecasts that the financial services provider will post earnings per share of $1.30 for the quarter, down from their previous estimate of $1.72. The consensus estimate for OneMain's current full-year earnings is $7.19 per share. Northland Securities also issued estimates for OneMain's Q3 2026 earnings at $2.02 EPS, FY2026 earnings at $7.39 EPS, Q1 2027 earnings at $1.84 EPS and Q2 2027 earnings at $1.90 EPS.

Several other equities research analysts also recently weighed in on the company. Weiss Ratings reiterated a "buy (b-)" rating on shares of OneMain in a report on Tuesday, July 7th. TD Cowen boosted their price objective on OneMain from $66.00 to $68.00 and gave the company a "buy" rating in a report on Tuesday, July 7th. BTIG Research reaffirmed a "neutral" rating on shares of OneMain in a research report on Thursday, April 16th. Wells Fargo & Company reduced their target price on OneMain from $70.00 to $65.00 and set an "equal weight" rating on the stock in a research note on Thursday, April 9th. Finally, Evercore set a $66.00 target price on OneMain in a research report on Monday, July 6th. Eight equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $67.80.

OneMain Price Performance

Shares of NYSE:OMF opened at $60.06 on Wednesday. OneMain has a 1 year low of $45.78 and a 1 year high of $71.93. The business has a 50 day simple moving average of $57.07 and a two-hundred day simple moving average of $58.10. The firm has a market capitalization of $6.94 billion, a PE ratio of 8.94, a price-to-earnings-growth ratio of 0.46 and a beta of 1.22.

OneMain (NYSE:OMF - Get Free Report) last issued its quarterly earnings results on Friday, May 1st. The financial services provider reported $1.95 EPS for the quarter, beating the consensus estimate of $1.86 by $0.09. OneMain had a net margin of 14.38% and a return on equity of 24.24%. The company had revenue of $1.58 billion for the quarter, compared to the consensus estimate of $1.27 billion. During the same period in the prior year, the firm posted $1.72 EPS. The firm's revenue was up 6.7% compared to the same quarter last year.

OneMain Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Monday, May 11th were issued a $1.05 dividend. The ex-dividend date was Monday, May 11th. This represents a $4.20 dividend on an annualized basis and a dividend yield of 7.0%. OneMain's payout ratio is presently 62.50%.

Insider Buying and Selling

In other OneMain 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 sale, 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 position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Michael A. Hedlund sold 1,848 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 $114,576.00. Following the completion of the sale, the senior vice president owned 13,127 shares of the company's stock, valued at $813,874. This represents a 12.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.29% of the stock is currently owned by insiders.

Institutional Trading of OneMain

Institutional investors and hedge funds have recently made changes to their positions in the company. CIBC Private Wealth Group LLC grew its holdings in OneMain by 117.4% during the 4th quarter. CIBC Private Wealth Group LLC now owns 374 shares of the financial services provider's stock worth $25,000 after acquiring an additional 202 shares in the last quarter. Core Wealth Advisors LLC purchased a new stake in shares of OneMain in the 4th quarter worth approximately $31,000. Atlantic Union Bankshares Corp bought a new position in shares of OneMain during the fourth quarter valued at approximately $36,000. Transamerica Financial Advisors LLC boosted its stake in shares of OneMain by 88.2% during the fourth quarter. Transamerica Financial Advisors LLC now owns 670 shares of the financial services provider's stock valued at $45,000 after purchasing an additional 314 shares in the last quarter. Finally, Sunbelt Securities Inc. purchased a new position in OneMain during the third quarter valued at approximately $46,000. 85.82% of the stock is currently owned by institutional investors.

More OneMain News

Here are the key news stories impacting OneMain this week:

• Positive Sentiment: Northland Securities’ FY2027 EPS estimate of $8.30 is above the Street’s $7.19 consensus, signaling confidence in OneMain’s longer-term earnings power.
• Positive Sentiment: The firm also lifted its Q3 2026 EPS estimate to $2.02 from $1.96, suggesting improving earnings expectations in the near term.
• Positive Sentiment: OneMain recently beat its last quarterly estimates on both earnings and revenue, which may reinforce investor optimism around execution.
• Neutral Sentiment: Northland trimmed its Q2 2026 EPS estimate to $1.30 from $1.72 and reduced FY2026 expectations to $7.39 from $7.76, creating some mixed signals on the near-term outlook.
• Neutral Sentiment: The company is scheduled to report quarterly earnings soon, so traders may be waiting for fresh results before making a bigger move.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.