OneMain (NYSE:OMF) Reaches New 1-Year High After Earnings Beat

OneMain Holdings, Inc. (NYSE:OMF)’s stock price reached a new 52-week high during mid-day trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $53.65 and last traded at $52.69, with a volume of 601783 shares trading hands. The stock had previously closed at $50.85.

The financial services provider reported $1.45 earnings per share for the quarter, topping analysts’ consensus estimates of $1.38 by $0.07. OneMain had a net margin of 13.29% and a return on equity of 20.94%. The business had revenue of $1.17 billion during the quarter, compared to the consensus estimate of $907.93 million. During the same period in the previous year, the firm posted $1.46 earnings per share.

OneMain Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, May 17th. Stockholders of record on Friday, May 10th will be given a $1.04 dividend. This is a positive change from OneMain’s previous quarterly dividend of $1.00. This represents a $4.16 annualized dividend and a dividend yield of 8.19%. The ex-dividend date of this dividend is Thursday, May 9th. OneMain’s dividend payout ratio (DPR) is currently 77.97%.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the company. Piper Sandler lowered OneMain from an “overweight” rating to a “neutral” rating and cut their target price for the company from $55.00 to $49.00 in a research note on Thursday, February 8th. Stephens cut their price target on shares of OneMain from $61.00 to $57.00 and set an “overweight” rating on the stock in a research report on Thursday, February 8th. Wells Fargo & Company boosted their price objective on shares of OneMain from $43.00 to $48.00 and gave the company an “equal weight” rating in a report on Thursday, January 4th. Northland Securities lowered shares of OneMain from an “outperform” rating to a “market perform” rating and increased their target price for the stock from $46.00 to $49.00 in a report on Wednesday, January 17th. Finally, JPMorgan Chase & Co. boosted their price target on shares of OneMain from $51.00 to $52.00 and gave the company an “overweight” rating in a report on Wednesday. Four investment analysts have rated the stock with a hold rating and ten have issued a buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $53.31.

Institutional Trading of OneMain

A number of institutional investors have recently modified their holdings of OMF. AE Wealth Management LLC raised its position in OneMain by 27.8% in the 3rd quarter. AE Wealth Management LLC now owns 9,001 shares of the financial services provider’s stock valued at $361,000 after buying an additional 1,959 shares during the last quarter. Cambridge Investment Research Advisors Inc. boosted its holdings in OneMain by 3.0% during the third quarter. Cambridge Investment Research Advisors Inc. now owns 97,198 shares of the financial services provider’s stock worth $3,897,000 after purchasing an additional 2,800 shares during the last quarter. Bank of New York Mellon Corp boosted its holdings in OneMain by 5.8% during the third quarter. Bank of New York Mellon Corp now owns 1,052,225 shares of the financial services provider’s stock worth $42,184,000 after purchasing an additional 58,079 shares during the last quarter. Verdence Capital Advisors LLC grew its position in OneMain by 1.0% in the third quarter. Verdence Capital Advisors LLC now owns 35,708 shares of the financial services provider’s stock valued at $1,432,000 after purchasing an additional 363 shares in the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank increased its stake in OneMain by 71.0% in the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 33,001 shares of the financial services provider’s stock valued at $1,323,000 after buying an additional 13,697 shares during the last quarter. 85.82% of the stock is currently owned by institutional investors.

OneMain Stock Performance

The firm’s 50-day simple moving average is $48.87 and its 200 day simple moving average is $45.58. The stock has a market capitalization of $6.09 billion, a P/E ratio of 9.90, a PEG ratio of 0.72 and a beta of 1.63.

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.