OneMain (NYSE:OMF) Reaches New 1-Year 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 trading on Friday following a stronger than expected earnings report. The stock traded as high as $60.33 and last traded at $57.71, with a volume of 278423 shares changing hands. The stock had previously closed at $58.63.

The financial services provider reported $1.45 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.25 by $0.20. OneMain had a net margin of 12.63% and a return on equity of 20.77%. The company had revenue of $1.20 billion for the quarter, compared to analyst estimates of $1.19 billion. During the same period in the prior year, the business earned $1.02 EPS. The firm's quarterly revenue was up 7.1% on a year-over-year basis.

OneMain Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, August 13th. Shareholders of record on Monday, August 4th will be given a $1.04 dividend. This represents a $4.16 dividend on an annualized basis and a yield of 7.08%. The ex-dividend date of this dividend is Monday, August 4th. OneMain's dividend payout ratio is currently 75.09%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on OMF shares. Northland Securities raised shares of OneMain from a "market perform" rating to an "outperform" rating in a research report on Tuesday, April 8th. Wells Fargo & Company upped their price target on shares of OneMain from $53.00 to $60.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 15th. JPMorgan Chase & Co. upped their price target on OneMain from $50.00 to $63.00 and gave the stock an "overweight" rating in a research note on Friday, July 11th. Northland Capmk upgraded shares of OneMain from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, April 8th. Finally, JMP Securities restated a "market outperform" rating and set a $65.00 price objective on shares of OneMain in a research report on Wednesday, April 30th. Three analysts have rated the stock with a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat, OneMain currently has a consensus rating of "Moderate Buy" and a consensus target price of $60.78.

Insider Buying and Selling

In related news, COO Micah R. Conrad sold 3,000 shares of OneMain stock in a transaction dated Thursday, July 3rd. The stock was sold at an average price of $60.00, for a total transaction of $180,000.00. Following the completion of the sale, the chief operating officer owned 98,007 shares in the company, valued at approximately $5,880,420. This trade represents a 2.97% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Douglas H. Shulman sold 20,000 shares of the business's stock in a transaction that occurred on Monday, June 16th. The shares were sold at an average price of $52.56, for a total transaction of $1,051,200.00. Following the completion of the transaction, the chief executive officer directly owned 323,925 shares of the company's stock, valued at approximately $17,025,498. This represents a 5.82% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 60,000 shares of company stock worth $3,082,190. 0.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On OneMain

Several hedge funds and other institutional investors have recently modified their holdings of OMF. Alpine Bank Wealth Management purchased a new position in OneMain in the first quarter valued at about $27,000. SVB Wealth LLC acquired a new position in OneMain in the first quarter worth about $34,000. BI Asset Management Fondsmaeglerselskab A S bought a new stake in shares of OneMain in the 1st quarter valued at approximately $42,000. Headlands Technologies LLC bought a new stake in OneMain during the first quarter valued at $46,000. Finally, Legend Financial Advisors Inc. acquired a new stake in OneMain during the second quarter worth about $57,000. 85.82% of the stock is owned by institutional investors and hedge funds.

OneMain Trading Down 0.8%

The firm has a market capitalization of $6.99 billion, a price-to-earnings ratio of 10.61, a PEG ratio of 0.47 and a beta of 1.32. The business has a 50-day moving average price of $55.20 and a two-hundred day moving average price of $52.29.

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.