OneMain Holdings, Inc. (NYSE:OMF) Declares $1.04 Quarterly Dividend

Key Points

• OneMain Holdings, Inc. declared a quarterly dividend of $1.04 per share, benefiting stockholders of record on August 4th.
• The company's annualized dividend totals $4.16, with a current dividend yield of 7.18%.
• OneMain reported an earnings per share (EPS) of $1.45, exceeding expectations and showing a 7.1% revenue increase year-over-year.
• Analysts maintain a "Moderate Buy" rating on the stock, with an average target price of $60.78.

OneMain Holdings, Inc. (NYSE:OMF - Get Free Report) announced a quarterly dividend on Friday, July 25th, RTT News reports. Stockholders of record on Monday, August 4th will be given a dividend of 1.04 per share by the financial services provider on Wednesday, August 13th. This represents a $4.16 dividend on an annualized basis and a dividend yield of 7.18%.

OneMain has a dividend payout ratio of 51.9% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect OneMain to earn $8.22 per share next year, which means the company should continue to be able to cover its $4.16 annual dividend with an expected future payout ratio of 50.6%.

OneMain Price Performance

Shares of OMF opened at $57.96 on Friday. OneMain has a one year low of $38.00 and a one year high of $60.33. The company has a market cap of $6.90 billion, a P/E ratio of 12.22, a P/E/G ratio of 0.47 and a beta of 1.32. The firm has a 50 day simple moving average of $54.90 and a two-hundred day simple moving average of $52.19.

OneMain (NYSE:OMF - Get Free Report) last announced its quarterly earnings data on Friday, July 25th. The financial services provider reported $1.45 EPS for the quarter, beating the consensus estimate of $1.25 by $0.20. OneMain had a net margin of 11.06% and a return on equity of 19.30%. During the same quarter in the prior year, the company earned $1.02 earnings per share. The company's revenue for the quarter was up 7.1% compared to the same quarter last year. On average, analysts expect that OneMain will post 6.46 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several brokerages recently issued reports on OMF. Northland Securities raised OneMain from a "market perform" rating to an "outperform" rating in a research report on Tuesday, April 8th. Wells Fargo & Company boosted their price objective on OneMain from $53.00 to $60.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 15th. JMP Securities reissued a "market outperform" rating and issued a $65.00 price objective on shares of OneMain in a research note on Wednesday, April 30th. Barclays boosted their price objective on OneMain from $48.00 to $56.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 8th. Finally, Northland Capmk raised OneMain from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, April 8th. Three research analysts have rated the stock with a hold rating, seven have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $60.78.

Insider Activity at OneMain

In related news, COO Micah R. Conrad sold 5,000 shares of the company's stock in a transaction that occurred on Wednesday, May 28th. The stock was sold at an average price of $52.21, for a total value of $261,050.00. Following the transaction, the chief operating officer owned 108,007 shares in the company, valued at approximately $5,639,045.47. This represents a 4.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Douglas H. Shulman sold 40,000 shares of the firm's stock in a transaction on Tuesday, April 29th. The stock was sold at an average price of $50.00, for a total value of $2,000,000.00. Following the completion of the transaction, the chief executive officer directly owned 368,925 shares of the company's stock, valued at $18,446,250. The trade was a 9.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 100,000 shares of company stock worth $5,082,190. 0.40% of the stock is owned by company insiders.

Institutional Investors Weigh In On OneMain

Several large investors have recently added to or reduced their stakes in the business. Focus Partners Wealth raised its position in OneMain by 101.8% during the first quarter. Focus Partners Wealth now owns 8,737 shares of the financial services provider's stock valued at $427,000 after purchasing an additional 4,407 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in OneMain by 2.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 442,598 shares of the financial services provider's stock valued at $21,634,000 after purchasing an additional 9,067 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new stake in OneMain during the first quarter valued at about $2,037,000. Institutional investors own 85.82% of the company's stock.

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.

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