OneMain (NYSE:OMF) Sets New 1-Year High - What's Next?

Key Points

• OneMain Holdings, Inc. reached a new 52-week high of $61.81, with the stock closing at $61.42 and a trading volume of 901,288 shares.
• The company reported positive earnings results, with $1.45 EPS that surpassed estimates, and a revenue increase of 7.1% year-over-year.
• OneMain announced a quarterly dividend of $1.04, yielding 6.8%, while insiders have sold a total of 65,000 shares valued at over $3.7 million in the last 90 days.

OneMain Holdings, Inc. (NYSE:OMF - Get Free Report) reached a new 52-week high on Thursday . The stock traded as high as $61.81 and last traded at $61.42, with a volume of 901288 shares changing hands. The stock had previously closed at $61.15.

Analyst Ratings Changes

Several research firms recently weighed in on OMF. Barclays raised their price objective on OneMain from $48.00 to $56.00 and gave the company an "equal weight" rating in a report on Tuesday, July 8th. Wells Fargo & Company started coverage on OneMain in a report on Monday, August 25th. They set an "equal weight" rating on the stock. Finally, JPMorgan Chase & Co. lifted their target price on OneMain from $50.00 to $63.00 and gave the stock an "overweight" rating in a report on Friday, July 11th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $61.50.

OneMain Stock Performance

The company has a market capitalization of $7.19 billion, a price-to-earnings ratio of 10.92, a P/E/G ratio of 0.48 and a beta of 1.30. The business has a 50 day moving average price of $58.20 and a 200-day moving average price of $52.70.

OneMain (NYSE:OMF - Get Free Report) last announced its quarterly earnings data 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 the consensus estimate of $1.19 billion. OneMain had a return on equity of 20.65% and a net margin of 12.63%.The firm's revenue was up 7.1% compared to the same quarter last year. During the same period in the previous year, the business earned $1.02 EPS. As a group, equities analysts predict that OneMain Holdings, Inc. will post 6.46 EPS for the current fiscal year.

OneMain Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, August 13th. Stockholders of record on Monday, August 4th were paid a $1.04 dividend. This represents a $4.16 dividend on an annualized basis and a dividend yield of 6.9%. The ex-dividend date of this dividend was Monday, August 4th. OneMain's payout ratio is currently 75.09%.

Insider Transactions at OneMain

In related news, CEO Douglas H. Shulman sold 35,000 shares of the business's stock in a transaction dated Tuesday, July 29th. The stock was sold at an average price of $59.47, for a total value of $2,081,450.00. Following the completion of the sale, 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 position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, COO Micah R. Conrad sold 3,000 shares of the business's stock in a transaction dated Thursday, July 3rd. The shares were sold at an average price of $60.00, for a total value of $180,000.00. Following the completion of the sale, the chief operating officer directly owned 98,007 shares of the company's stock, valued at $5,880,420. The trade was a 2.97% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 65,000 shares of company stock valued at $3,715,340 over the last ninety days. 0.40% of the stock is currently owned by corporate insiders.

Institutional Trading of OneMain

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Kingstone Capital Partners Texas LLC bought a new stake in OneMain in the 2nd quarter valued at about $611,102,000. Brave Warrior Advisors LLC increased its holdings in OneMain by 7.2% during the 2nd quarter. Brave Warrior Advisors LLC now owns 7,870,085 shares of the financial services provider's stock worth $448,595,000 after purchasing an additional 526,449 shares in the last quarter. Dimensional Fund Advisors LP increased its holdings in OneMain by 7.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 3,736,070 shares of the financial services provider's stock worth $182,610,000 after purchasing an additional 256,308 shares in the last quarter. Fiduciary Management Inc. WI increased its holdings in OneMain by 21.8% during the 1st quarter. Fiduciary Management Inc. WI now owns 2,647,875 shares of the financial services provider's stock worth $129,428,000 after purchasing an additional 474,161 shares in the last quarter. Finally, Geode Capital Management LLC increased its holdings in OneMain by 0.7% during the 2nd quarter. Geode Capital Management LLC now owns 2,276,830 shares of the financial services provider's stock worth $130,075,000 after purchasing an additional 16,469 shares in the last quarter. 85.82% of the stock is owned by institutional investors.

About OneMain

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.