OneMain (NYSE:OMF) Hits New 12-Month High on Strong Earnings

Key Points

• OneMain Holdings, Inc. (NYSE:OMF) reached a new 12-month high of $60.33 during trading on Friday, following an earnings report that exceeded analysts' expectations.
• The company reported $1.45 earnings per share, surpassing the consensus estimate of $1.25, and recorded a revenue of $1.20 billion.
• OneMain announced a quarterly dividend of $1.04, representing a 7.22% yield, which is set to be paid on August 13th.
• Multiple analysts have raised their price targets for OneMain, with JPMorgan increasing theirs from $50 to $63, indicating a positive outlook on the stock.

OneMain Holdings, Inc. (NYSE:OMF - Get Free Report) hit a new 52-week high during mid-day trading on Friday following a better than expected earnings announcement. The company traded as high as $60.33 and last traded at $57.71, with a volume of 278423 shares trading hands. The stock had previously closed at $58.63.

The financial services provider reported $1.45 earnings per share for the quarter, topping the consensus estimate of $1.25 by $0.20. The company had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.19 billion. OneMain had a net margin of 11.06% and a return on equity of 19.30%. The company's revenue was up 7.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.02 EPS.

OneMain Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, August 13th. Stockholders of record on Monday, August 4th will be given a $1.04 dividend. This represents a $4.16 annualized dividend and a dividend yield of 7.22%. OneMain's payout ratio is currently 87.95%.

Analyst Upgrades and Downgrades

Several research firms have recently commented on OMF. JPMorgan Chase & Co. lifted their price target on shares of OneMain from $50.00 to $63.00 and gave the company an "overweight" rating in a report on Friday, July 11th. JMP Securities reaffirmed a "market outperform" rating and issued a $65.00 price target on shares of OneMain in a report on Wednesday, April 30th. Wells Fargo & Company lifted their price target on shares of OneMain from $53.00 to $60.00 and gave the company an "equal weight" rating in a report on Tuesday, July 15th. Northland Capmk raised shares of OneMain from a "hold" rating to a "strong-buy" rating in a report on Tuesday, April 8th. Finally, Barclays lifted their price target on shares of OneMain from $48.00 to $56.00 and gave the company an "equal weight" rating in a report on Tuesday, July 8th. Three research analysts have rated the stock with a hold rating, seven have assigned a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, OneMain presently has an average rating of "Moderate Buy" and an average target price of $60.78.

Insider Transactions at OneMain

In other OneMain news, COO Micah R. Conrad sold 5,000 shares of the business's stock in a transaction dated Wednesday, May 28th. The shares were sold at an average price of $52.21, for a total transaction of $261,050.00. Following the completion of the transaction, the chief operating officer directly owned 108,007 shares of the company's stock, valued at $5,639,045.47. The trade was a 4.42% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Douglas H. Shulman sold 40,000 shares of the business's stock in a transaction dated Tuesday, April 29th. The shares were sold at an average price of $50.00, for a total transaction of $2,000,000.00. Following 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. Insiders have sold a total of 100,000 shares of company stock valued at $5,082,190 over the last three months. 0.40% of the stock is currently owned by company insiders.

Institutional Trading of OneMain

A number of institutional investors have recently made changes to their positions in the stock. IFP Advisors Inc lifted its stake in shares of OneMain by 178.8% in the 2nd quarter. IFP Advisors Inc now owns 1,040 shares of the financial services provider's stock worth $59,000 after acquiring an additional 667 shares during the period. Callan Family Office LLC acquired a new stake in shares of OneMain in the 2nd quarter worth approximately $704,000. US Bancorp DE lifted its stake in shares of OneMain by 3.3% in the 2nd quarter. US Bancorp DE now owns 14,465 shares of the financial services provider's stock worth $825,000 after acquiring an additional 463 shares during the period. KLP Kapitalforvaltning AS raised its holdings in shares of OneMain by 4.2% in the 2nd quarter. KLP Kapitalforvaltning AS now owns 24,600 shares of the financial services provider's stock worth $1,402,000 after purchasing an additional 1,000 shares in the last quarter. Finally, Prime Capital Investment Advisors LLC bought a new stake in shares of OneMain in the 2nd quarter worth approximately $258,000. 85.82% of the stock is owned by institutional investors and hedge funds.

OneMain Trading Down 1.8%

The business's fifty day moving average is $54.90 and its 200 day moving average is $52.19. The firm has a market capitalization of $6.85 billion, a P/E ratio of 12.18, a P/E/G ratio of 0.47 and a beta of 1.32.

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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