OneMain (NYSE:OMF) Posts Quarterly Earnings Results, Beats Expectations By $0.20 EPS

Key Points

• OneMain (NYSE:OMF) reported quarterly earnings of $1.45 EPS, exceeding analysts' estimates of $1.25 EPS by $0.20, and had a revenue of $1.20 billion, also above expectations.
• The company announced a quarterly dividend of $1.04, translating to an annualized dividend of $4.16 and a dividend yield of 7.01%.
• Analysts have a consensus "Moderate Buy" rating for OneMain, with price targets ranging from $60.00 to $65.00, reflecting optimism for the company's growth potential.

OneMain (NYSE:OMF - Get Free Report) announced its quarterly earnings results on Friday. The financial services provider reported $1.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.25 by $0.20, Zacks reports. The business had revenue of $1.20 billion for the quarter, compared to analyst estimates of $1.19 billion. OneMain had a return on equity of 20.77% and a net margin of 12.63%. The company's quarterly revenue was up 7.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.02 earnings per share.

OneMain Stock Performance

NYSE OMF traded down $0.15 on Wednesday, reaching $58.14. 538,868 shares of the company's stock traded hands, compared to its average volume of 1,116,198. The firm has a market cap of $6.92 billion, a price-to-earnings ratio of 10.50, a P/E/G ratio of 0.47 and a beta of 1.32. The stock has a 50 day moving average price of $55.34 and a 200-day moving average price of $52.33. OneMain has a fifty-two week low of $38.00 and a fifty-two week high of $60.33.

OneMain Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, August 13th. Investors of record on Monday, August 4th will be given a dividend of $1.04 per share. The ex-dividend date of this dividend is Monday, August 4th. This represents a $4.16 dividend on an annualized basis and a yield of 7.16%. OneMain's dividend payout ratio is presently 75.09%.

Analysts Set New Price Targets

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

Insider Transactions at OneMain

In other OneMain news, CEO Douglas H. Shulman sold 25,000 shares of the company's stock in a transaction dated Thursday, May 1st. The shares were sold at an average price of $47.49, for a total value of $1,187,250.00. Following the completion of the transaction, the chief executive officer owned 343,925 shares in the company, valued at approximately $16,332,998.25. This represents a 6.78% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, COO Micah R. Conrad sold 5,000 shares of the company's stock in a transaction dated Wednesday, May 28th. The stock was 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 owned 108,007 shares of the company's stock, valued at approximately $5,639,045.47. This trade represents a 4.42% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 60,000 shares of company stock valued at $3,082,190. Insiders own 0.40% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Focus Partners Wealth grew its stake in OneMain by 101.8% during the 1st quarter. Focus Partners Wealth now owns 8,737 shares of the financial services provider's stock valued at $427,000 after acquiring an additional 4,407 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new stake in OneMain during the 1st quarter valued at about $2,037,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in OneMain by 2.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 442,598 shares of the financial services provider's stock valued at $21,634,000 after acquiring an additional 9,067 shares in the last quarter. Institutional investors and hedge funds own 85.82% of the company's stock.

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.