Royal Bank Of Canada Has Lowered Expectations for OneMain (NYSE:OMF) Stock Price

Key Points

• Royal Bank of Canada cut its price target on OneMain to $70 from $73 but kept an "outperform" rating, with the new target implying roughly a 25.43% upside from the stock's current level.
• Multiple brokers have trimmed targets recently (e.g., Truist, Wells Fargo, JPMorgan), though the consensus remains a "Moderate Buy" with an average price target of $68.30 and analyst counts of 8 Buys, 3 Holds and 1 Sell.
• OneMain recently beat quarterly expectations—EPS $1.95 vs. $1.86 and revenue $1.58B vs. $1.28B estimate—while trading around $55.81 with a 52-week range of $45.78–$71.93 and a P/E of 8.41.

OneMain (NYSE:OMF - Get Free Report) had its target price cut by research analysts at Royal Bank Of Canada from $73.00 to $70.00 in a research note issued to investors on Monday,MarketScreener reports. The brokerage currently has an "outperform" rating on the financial services provider's stock. Royal Bank Of Canada's target price points to a potential upside of 25.43% from the stock's current price.

Other equities analysts also recently issued research reports about the stock. Truist Financial cut their price target on shares of OneMain from $75.00 to $73.00 and set a "buy" rating on the stock in a research note on Friday, February 6th. Wells Fargo & Company lowered their price objective on shares of OneMain from $70.00 to $65.00 and set an "equal weight" rating for the company in a research note on Thursday, April 9th. Barclays set a $61.00 price objective on OneMain in a report on Monday. JPMorgan Chase & Co. cut their target price on OneMain from $63.00 to $55.00 and set an "underweight" rating on the stock in a research report on Thursday, April 9th. Finally, Evercore set a $55.00 target price on OneMain in a report on Tuesday, March 17th. Eight investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $68.30.

OneMain Stock Down 1.4%

Shares of OneMain stock opened at $55.81 on Monday. OneMain has a fifty-two week low of $45.78 and a fifty-two week high of $71.93. The business's fifty day moving average is $55.12 and its two-hundred day moving average is $60.14. The firm has a market cap of $6.54 billion, a PE ratio of 8.41, a P/E/G ratio of 0.41 and a beta of 1.27.

OneMain (NYSE:OMF - Get Free Report) last released its 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 24.25% and a net margin of 14.38%.The firm had revenue of $1.58 billion for the quarter, compared to the consensus estimate of $1.28 billion. During the same period in the prior year, the business posted $1.72 earnings per share. The firm's revenue for the quarter was up 6.7% compared to the same quarter last year. Equities research analysts anticipate that OneMain will post 7.49 EPS for the current year.

Insider Transactions at OneMain

In other news, COO Micah R. Conrad sold 5,000 shares of the stock in a transaction on Friday, April 17th. The shares were sold at an average price of $60.00, for a total value of $300,000.00. Following the completion of the sale, the chief operating officer owned 101,250 shares of the company's stock, valued at $6,075,000. This 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 available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On OneMain

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. increased its holdings in OneMain by 2.1% in the 3rd quarter. Vanguard Group Inc. now owns 11,970,406 shares of the financial services provider's stock valued at $675,849,000 after purchasing an additional 249,785 shares in the last quarter. Capital International Investors lifted its stake in shares of OneMain by 0.8% during the third quarter. Capital International Investors now owns 10,376,590 shares of the financial services provider's stock worth $585,868,000 after purchasing an additional 82,202 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in shares of OneMain by 1.4% in the fourth quarter. Dimensional Fund Advisors LP now owns 4,033,871 shares of the financial services provider's stock worth $272,490,000 after buying an additional 53,840 shares during the period. Janus Henderson Group PLC boosted its position in shares of OneMain by 70.4% in the fourth quarter. Janus Henderson Group PLC now owns 2,534,271 shares of the financial services provider's stock worth $171,210,000 after buying an additional 1,047,263 shares during the period. Finally, Geode Capital Management LLC grew its stake in shares of 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 in the last quarter. Institutional investors and hedge funds own 85.82% of the company's stock.

OneMain Company Profile

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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