OneMain (NYSE:OMF) Downgraded to "Hold" Rating by Wall Street Zen

Key Points

• OneMain Holdings has been downgraded from a "buy" to a "hold" rating by Wall Street Zen, indicating a cautious outlook for the stock.
• Despite the downgrade, Weiss Ratings maintains a "buy" rating, and the consensus rating for OneMain’s stock remains a "Moderate Buy" with a price target of $60.75.
• CEO Douglas H. Shulman sold 35,000 shares of OneMain stock in July, reducing his ownership by 11.29%, which may signal changes in insider confidence regarding the stock’s future.

OneMain (NYSE:OMF - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday.

A number of other equities research analysts have also recently issued reports on OMF. Weiss Ratings reiterated a "buy (b-)" rating on shares of OneMain in a research note on Wednesday. Wells Fargo & Company assumed coverage on OneMain in a research note on Monday, August 25th. They issued an "equal weight" rating on the stock. Barclays raised their price target on OneMain from $48.00 to $56.00 and gave the company an "equal weight" rating in a report on Tuesday, July 8th. Finally, JPMorgan Chase & Co. reissued a "neutral" rating and set a $57.00 price target (down from $63.00) on shares of OneMain in a report on Tuesday. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $60.75.

OneMain Stock Performance

OMF stock opened at $52.15 on Friday. The stock has a market capitalization of $6.20 billion, a price-to-earnings ratio of 9.41, a PEG ratio of 0.43 and a beta of 1.32. OneMain has a 1 year low of $38.00 and a 1 year high of $63.24. The stock's fifty day moving average is $58.73 and its two-hundred day moving average is $54.23.

OneMain (NYSE:OMF - Get Free Report) last posted its earnings results on Friday, July 25th. The financial services provider reported $1.45 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.25 by $0.20. The company had revenue of $1.20 billion for 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 last year, the business posted $1.02 earnings per share. As a group, analysts predict that OneMain will post 6.46 EPS for the current fiscal year.

Insider Transactions at OneMain

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 transaction of $2,081,450.00. Following the transaction, the chief executive officer directly owned 275,100 shares of the company's stock, valued at $16,360,197. The trade was a 11.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.40% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of OMF. Alpine Bank Wealth Management purchased a new position in OneMain in the 1st quarter worth about $27,000. SVB Wealth LLC purchased a new position in OneMain in the 1st quarter worth about $34,000. Mitsubishi UFJ Asset Management Co. Ltd. increased its stake in 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 purchasing an additional 363 shares in the last quarter. BI Asset Management Fondsmaeglerselskab A S purchased a new position in OneMain in the 1st quarter worth about $42,000. Finally, Golden State Wealth Management LLC increased its stake in OneMain by 2,940.0% in the 2nd quarter. Golden State Wealth Management LLC now owns 912 shares of the financial services provider's stock worth $52,000 after purchasing an additional 882 shares in the last quarter. 85.82% of the stock is owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.