OneMain (NYSE:OMF) Releases 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 data on Friday. The financial services provider reported $1.45 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.25 by $0.20, Zacks reports. The firm had revenue of $1.20 billion during the quarter, compared to analyst estimates of $1.19 billion. OneMain had a net margin of 11.06% and a return on equity of 19.30%. OneMain's quarterly revenue was up 7.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.02 earnings per share.

OneMain Stock Performance

OMF stock traded up $0.74 during trading on Friday, hitting $59.37. The stock had a trading volume of 1,930,944 shares, compared to its average volume of 1,126,247. The company's 50 day moving average price is $55.05 and its two-hundred day moving average price is $52.23. OneMain has a 1-year low of $38.00 and a 1-year high of $60.33. The stock has a market cap of $7.06 billion, a price-to-earnings ratio of 12.55, a price-to-earnings-growth ratio of 0.47 and a beta of 1.32.

OneMain Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 13th. Investors 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 7.01%. OneMain's dividend payout ratio is presently 87.95%.

Wall Street Analysts Forecast Growth

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

Insider Activity

In related news, 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 value of $2,000,000.00. Following the completion of the transaction, the chief executive officer owned 368,925 shares of the company's stock, valued at approximately $18,446,250. The trade was a 9.78% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, 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 disclosure for this sale can be found here. Insiders sold a total of 100,000 shares of company stock valued at $5,082,190 in the last three months. 0.40% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in OMF. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in OneMain in the 1st quarter valued at about $2,037,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of 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 during the last quarter. Finally, Focus Partners Wealth increased its stake in shares of 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 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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