OneMain (NYSE:OMF) Reaches New 52-Week High - Should You Buy?

Key Points

• OneMain Holdings, Inc. (NYSE:OMF) reached a new 52-week high of $62.14 during trading, closing at $61.98 with a trading volume of 898,614 shares.
• Analysts have upgraded OneMain's price target, with JPMorgan increasing it to $63.00 and Barclays to $56.00, resulting in an average consensus target price of $61.50 and a rating of "Moderate Buy."
• OneMain announced a quarterly dividend of $1.04 per share, with an annualized yield of 6.7% and a dividend payout ratio of 75.09%.

OneMain Holdings, Inc. (NYSE:OMF - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $62.14 and last traded at $61.98, with a volume of 898614 shares trading hands. The stock had previously closed at $61.11.

Analysts Set New Price Targets

OMF has been the subject of several research analyst reports. Wells Fargo & Company assumed coverage on shares of OneMain in a research note on Monday, August 25th. They set an "equal weight" rating for the company. JPMorgan Chase & Co. increased their target price on shares of OneMain from $50.00 to $63.00 and gave the company an "overweight" rating in a research note on Friday, July 11th. Finally, Barclays lifted their target price on OneMain from $48.00 to $56.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 8th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $61.50.

OneMain Stock Up 1.4%

The stock has a fifty day moving average of $58.32 and a 200-day moving average of $52.76. The firm has a market capitalization of $7.37 billion, a P/E ratio of 11.19, a PEG ratio of 0.48 and a beta of 1.30.

OneMain (NYSE:OMF - Get Free Report) last announced its earnings results on Friday, July 25th. The financial services provider reported $1.45 earnings per share for the quarter, topping analysts' consensus estimates 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 12.63% and a return on equity of 20.65%. The company's revenue was up 7.1% on a year-over-year basis. During the same period in the previous year, the firm posted $1.02 earnings per share. As a group, analysts forecast 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. Investors of record on Monday, August 4th were paid a dividend of $1.04 per share. This represents a $4.16 annualized dividend and a yield of 6.7%. The ex-dividend date of this dividend was Monday, August 4th. OneMain's dividend payout ratio (DPR) is presently 75.09%.

Insider Buying and Selling at OneMain

In related news, COO Micah R. Conrad sold 4,000 shares of the company's stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $58.02, for a total value of $232,080.00. Following the transaction, the chief operating officer directly owned 101,007 shares in the company, valued at approximately $5,860,426.14. This represents a 3.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Douglas H. Shulman sold 35,000 shares of OneMain stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $59.47, for a total value of $2,081,450.00. Following the completion of the transaction, the chief executive officer directly owned 275,100 shares of the company's stock, valued at $16,360,197. This represents a 11.29% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 65,000 shares of company stock valued at $3,715,340 in the last 90 days. 0.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On OneMain

Institutional investors and hedge funds have recently bought and sold shares of the company. Kingstone Capital Partners Texas LLC bought a new position in OneMain during the 2nd quarter worth $611,102,000. Norges Bank acquired a new stake in shares of OneMain in the second quarter valued at about $85,541,000. Nuveen LLC bought a new position in shares of OneMain during the first quarter worth about $48,282,000. Cooperman Leon G lifted its stake in shares of OneMain by 187.7% in the first quarter. Cooperman Leon G now owns 889,000 shares of the financial services provider's stock worth $43,454,000 after acquiring an additional 580,000 shares during the period. Finally, Brave Warrior Advisors LLC boosted its holdings in OneMain by 7.2% in the second quarter. Brave Warrior Advisors LLC now owns 7,870,085 shares of the financial services provider's stock valued at $448,595,000 after acquiring an additional 526,449 shares during the last quarter. Institutional investors and hedge funds own 85.82% of the company's stock.

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.

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