OneMain Holdings, Inc. (NYSE:OMF) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• OneMain Holdings has an average analyst rating of “Moderate Buy”, with 8 buy ratings, 3 hold ratings, and 1 sell rating. The average 1-year price target is $67.80.
• The company reported strong quarterly results, beating estimates with $1.95 EPS versus $1.86 expected and revenue of $1.58 billion versus $1.27 billion expected. Revenue rose 6.7% year over year, and analysts now expect full-year EPS of 7.19.
• OneMain also paid a quarterly dividend of $1.05 per share, equal to an annualized yield of about 7.0%. Insider selling was noted, including transactions by the SVP and COO under pre-arranged trading plans.

OneMain Holdings, Inc. (NYSE:OMF - Get Free Report) has been given an average recommendation of "Moderate Buy" by the twelve ratings firms that are currently covering the stock, MarketBeat reports. One investment analyst has rated the stock with a sell recommendation, three have assigned a hold recommendation and eight have assigned a buy recommendation to the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $67.80.

OMF has been the subject of a number of research reports. TD Cowen lifted their target price on OneMain from $66.00 to $68.00 and gave the company a "buy" rating in a research note on Tuesday, July 7th. BTIG Research restated a "neutral" rating on shares of OneMain in a research report on Thursday, April 16th. Evercore set a $66.00 target price on OneMain in a research note on Monday, July 6th. Royal Bank Of Canada reduced their price objective on OneMain from $73.00 to $70.00 and set an "outperform" rating for the company in a research report on Monday, May 4th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of OneMain in a report on Friday, July 10th.

OneMain Stock Performance

Shares of NYSE:OMF opened at $60.30 on Monday. The company has a market cap of $6.97 billion, a P/E ratio of 8.97, a PEG ratio of 0.46 and a beta of 1.22. OneMain has a one year low of $45.78 and a one year high of $71.93. The business's 50-day simple moving average is $56.79 and its 200 day simple moving average is $58.20.

OneMain (NYSE:OMF - Get Free Report) last released its quarterly earnings results on Friday, May 1st. The financial services provider reported $1.95 earnings per share for the quarter, beating analysts' consensus estimates of $1.86 by $0.09. OneMain had a net margin of 14.38% and a return on equity of 24.24%. The business had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.27 billion. During the same period last year, the business earned $1.72 EPS. The business's revenue was up 6.7% on a year-over-year basis. Analysts predict that OneMain will post 7.19 earnings per share for the current year.

OneMain Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Monday, May 11th were paid a dividend of $1.05 per share. The ex-dividend date of this dividend was Monday, May 11th. This represents a $4.20 annualized dividend and a yield of 7.0%. OneMain's dividend payout ratio (DPR) is currently 62.50%.

Insider Transactions at OneMain

In other OneMain news, SVP Michael A. Hedlund sold 1,848 shares of the business's stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $62.00, for a total transaction of $114,576.00. Following the sale, the senior vice president owned 13,127 shares in the company, valued at approximately $813,874. The trade was a 12.34% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Micah R. Conrad sold 5,000 shares of the business's stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $62.00, for a total transaction of $310,000.00. Following the sale, the chief operating officer owned 96,250 shares in the company, valued at $5,967,500. This represents a 4.94% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.29% of the stock is owned by insiders.

Institutional Investors Weigh In On OneMain

A number of institutional investors have recently modified their holdings of the stock. CIBC Private Wealth Group LLC lifted its holdings in shares of OneMain by 117.4% during the 4th quarter. CIBC Private Wealth Group LLC now owns 374 shares of the financial services provider's stock valued at $25,000 after buying an additional 202 shares during the last quarter. Core Wealth Advisors LLC acquired a new position in OneMain in the fourth quarter worth approximately $31,000. Atlantic Union Bankshares Corp acquired a new position in OneMain in the fourth quarter worth approximately $36,000. Transamerica Financial Advisors LLC raised its position in 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 acquiring an additional 314 shares in the last quarter. Finally, Spire Wealth Management raised its position in OneMain by 83.2% during the fourth quarter. Spire Wealth Management now owns 700 shares of the financial services provider's stock valued at $47,000 after acquiring an additional 318 shares in the last quarter. Institutional investors and hedge funds own 85.82% of the company's stock.

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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