OneMain (NYSE:OMF) Stock Price Expected to Rise, TD Cowen Analyst Says

Key Points

• TD Cowen raised its price target on OneMain from $66 to $68 and kept a buy rating, implying about 13% upside from the prior close. The new target is in line with a broader analyst view of a moderate buy.
• OneMain posted stronger-than-expected quarterly results, with earnings of $1.95 per share versus $1.86 expected and revenue of $1.58 billion versus $1.27 billion estimated. Revenue rose 6.7% year over year, and analysts expect full-year EPS of 7.27.
• Insider and institutional activity was mixed: several executives sold shares recently, while large funds such as Capital International Investors, Dimensional Fund Advisors, and Janus Henderson increased their stakes. Institutional investors now own the vast majority of the company’s shares.

OneMain (NYSE:OMF - Get Free Report) had its target price raised by analysts at TD Cowen from $66.00 to $68.00 in a research report issued on Tuesday,Benzinga reports. The firm currently has a "buy" rating on the financial services provider's stock. TD Cowen's target price suggests a potential upside of 13.19% from the stock's previous close.

Several other brokerages also recently issued reports on OMF. JPMorgan Chase & Co. cut their price target on OneMain from $63.00 to $55.00 and set an "underweight" rating for the company in a report on Thursday, April 9th. Truist Financial dropped their target price on OneMain from $73.00 to $70.00 and set a "buy" rating for the company in a report on Thursday, July 2nd. Barclays set a $60.00 price objective on shares of OneMain in a report on Tuesday. Wells Fargo & Company dropped their price target on OneMain from $70.00 to $65.00 and set an "equal weight" rating for the company in a research note on Thursday, April 9th. Finally, Evercore set a $66.00 price target on shares of OneMain in a research report on Monday. Eight investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $67.80.

OneMain Stock Performance

NYSE OMF traded down $0.01 during trading hours on Tuesday, hitting $60.08. 109,445 shares of the company traded hands, compared to its average volume of 1,368,638. The business's 50-day moving average is $56.39 and its 200-day moving average is $58.78. The stock has a market capitalization of $6.94 billion, a price-to-earnings ratio of 8.94, a P/E/G ratio of 0.44 and a beta of 1.22. OneMain has a twelve month low of $45.78 and a twelve month high of $71.93.

OneMain (NYSE:OMF - Get Free Report) last posted its quarterly earnings results on Friday, May 1st. The financial services provider reported $1.95 earnings per share for the quarter, topping the consensus estimate of $1.86 by $0.09. OneMain had a return on equity of 24.24% and a net margin of 14.38%.The firm had revenue of $1.58 billion for the quarter, compared to analyst estimates of $1.27 billion. During the same quarter in the previous year, the firm earned $1.72 EPS. The business's quarterly revenue was up 6.7% on a year-over-year basis. Analysts predict that OneMain will post 7.27 EPS for the current year.

Insider Buying and Selling at OneMain

In other news, COO Micah R. Conrad sold 5,000 shares of the firm's stock in a transaction on Friday, April 17th. The shares were sold at an average price of $60.00, for a total transaction of $300,000.00. Following the completion of the transaction, the chief operating officer owned 101,250 shares of the company's stock, valued at approximately $6,075,000. This trade represents a 4.71% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Michael A. Hedlund sold 1,848 shares of OneMain stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $62.00, for a total value of $114,576.00. Following the transaction, the senior vice president directly owned 13,127 shares in the company, valued at $813,874. The trade was a 12.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 11,848 shares of company stock valued at $724,576 in the last ninety days. Insiders own 0.29% of the company's stock.

Institutional Trading of OneMain

A number of large investors have recently bought and sold shares of the business. Capital International Investors lifted its stake in shares of OneMain by 0.8% in the 3rd quarter. Capital International Investors now owns 10,376,590 shares of the financial services provider's stock valued at $585,868,000 after purchasing an additional 82,202 shares during the period. Dimensional Fund Advisors LP increased its holdings in OneMain by 7.6% in the first quarter. Dimensional Fund Advisors LP now owns 4,342,241 shares of the financial services provider's stock worth $232,258,000 after purchasing an additional 308,370 shares in the last quarter. Janus Henderson Group PLC increased its holdings in OneMain by 7.7% in the first quarter. Janus Henderson Group PLC now owns 2,729,862 shares of the financial services provider's stock worth $146,030,000 after purchasing an additional 195,591 shares in the last quarter. Geode Capital Management LLC lifted its stake in OneMain by 0.7% in the fourth quarter. Geode Capital Management LLC now owns 2,422,562 shares of the financial services provider's stock valued at $164,017,000 after buying an additional 15,941 shares during the period. Finally, Arrowstreet Capital Limited Partnership lifted its stake in OneMain by 17.6% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 2,310,513 shares of the financial services provider's stock valued at $156,075,000 after buying an additional 345,269 shares during the period. 85.82% of the stock is currently owned by institutional investors and hedge funds.

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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