OneMain (NYSE:OMF) Share Price Passes Below 200 Day Moving Average - Here's Why

Key Points

• Price action: OneMain's share price slipped below its 200‑day moving average (200‑day MA $60.05), trading as low as $52.47 and last at $54.12 on roughly 1.0 million shares.
• Fundamentals & dividend: The company beat Q4 estimates (EPS $1.59 vs $1.55; revenue $1.61B vs $1.28B), reports a 14.35% net margin and 23.76% ROE, and pays a $1.05 quarterly dividend (annualized $4.20) for a 7.8% yield with a ~63.9% payout ratio.
• Analyst/ownership picture: Analysts average a "Moderate Buy" rating with a $69.89 price target (8 Buys, 2 Holds, 1 Sell); institutional investors own about 85.8% of the stock while insiders hold 0.4% (COO sold 5,000 shares recently).

OneMain Holdings, Inc. (NYSE:OMF - Get Free Report)'s share price passed below its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $60.05 and traded as low as $52.47. OneMain shares last traded at $54.12, with a volume of 1,004,837 shares trading hands.

Analysts Set New Price Targets

OMF has been the subject of several recent research reports. TD Cowen reissued a "buy" rating on shares of OneMain in a research report on Thursday, January 8th. Stephens decreased their price objective on OneMain to $76.00 and set an "overweight" rating on the stock in a report on Friday, February 6th. Wall Street Zen lowered OneMain from a "buy" rating to a "hold" rating in a research note on Sunday, January 18th. Barclays set a $71.00 target price on OneMain in a report on Friday, February 6th. Finally, Evercore set a $55.00 price target on OneMain in a research note on Tuesday, March 17th. Eight research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $69.89.

OneMain Stock Up 0.1%

The stock has a market capitalization of $6.34 billion, a price-to-earnings ratio of 8.24, a price-to-earnings-growth ratio of 0.40 and a beta of 1.30. The stock's 50-day simple moving average is $56.55 and its 200 day simple moving average is $60.05.

OneMain (NYSE:OMF - Get Free Report) last posted its quarterly earnings data on Thursday, February 5th. The financial services provider reported $1.59 earnings per share for the quarter, topping the consensus estimate of $1.55 by $0.04. The company had revenue of $1.61 billion during the quarter, compared to analyst estimates of $1.28 billion. OneMain had a net margin of 14.35% and a return on equity of 23.76%. During the same quarter last year, the business posted $1.16 earnings per share. As a group, equities research analysts anticipate that OneMain Holdings, Inc. will post 6.46 earnings per share for the current year.

OneMain Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, February 23rd. Shareholders of record on Tuesday, February 17th were given a $1.05 dividend. The ex-dividend date was Tuesday, February 17th. This represents a $4.20 annualized dividend and a yield of 7.8%. OneMain's payout ratio is presently 63.93%.

Insider Buying and Selling

In other news, COO Micah R. Conrad sold 5,000 shares of the stock in a transaction on Thursday, February 26th. The stock was sold at an average price of $58.00, for a total transaction of $290,000.00. Following the sale, the chief operating officer owned 106,250 shares in the company, valued at approximately $6,162,500. This represents a 4.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.40% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in OMF. CIBC Private Wealth Group LLC increased its position in OneMain by 117.4% in the 4th quarter. CIBC Private Wealth Group LLC now owns 374 shares of the financial services provider's stock valued at $25,000 after acquiring an additional 202 shares in the last quarter. Root Financial Partners LLC acquired a new position in shares of OneMain during the third quarter worth approximately $26,000. Core Wealth Advisors LLC bought a new stake in shares of OneMain during the fourth quarter valued at approximately $31,000. Activest Wealth Management grew its stake in shares of OneMain by 1,102.1% during the third quarter. Activest Wealth Management now owns 577 shares of the financial services provider's stock valued at $33,000 after purchasing an additional 529 shares during the last quarter. Finally, Atlantic Union Bankshares Corp acquired a new stake in shares of OneMain in the fourth quarter valued at approximately $36,000. Institutional investors and hedge funds own 85.82% of the company's stock.

About OneMain

OneMain Financial NYSE: OMF is a leading consumer finance company specializing in unsecured personal loans for middle-income customers. The company offers tailored loan products designed to address a variety of needs, including debt consolidation, home improvement financing, large purchases and emergency expenses. Through a combination of branch-based service and digital channels, OneMain aims to deliver a personalized borrowing experience with flexible repayment options and transparent terms.

Tracing its roots back to the Commercial Credit Company founded in 1912, OneMain has evolved through a series of mergers and corporate transformations.

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