OneMain (NYSE:OMF) Hits New 52-Week High on Earnings Beat

OneMain Holdings, Inc. (NYSE:OMF) shares reached a new 52-week high on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $53.65 and last traded at $52.69, with a volume of 601783 shares changing hands. The stock had previously closed at $50.85.

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

OneMain Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 17th. Investors of record on Friday, May 10th will be issued a $1.04 dividend. This represents a $4.16 annualized dividend and a yield of 8.19%. This is a boost from OneMain’s previous quarterly dividend of $1.00. The ex-dividend date of this dividend is Thursday, May 9th. OneMain’s payout ratio is presently 77.97%.

Analyst Ratings Changes

Several equities analysts have recently weighed in on OMF shares. JPMorgan Chase & Co. raised their target price on OneMain from $51.00 to $52.00 and gave the company an “overweight” rating in a research report on Wednesday. JMP Securities raised their price objective on OneMain from $57.00 to $62.00 and gave the company a “market outperform” rating in a report on Wednesday. TD Cowen upped their target price on shares of OneMain from $58.00 to $60.00 and gave the stock a “buy” rating in a report on Wednesday. StockNews.com raised shares of OneMain from a “hold” rating to a “buy” rating in a research note on Wednesday, February 14th. Finally, Royal Bank of Canada upped their price objective on shares of OneMain from $50.00 to $55.00 and gave the company an “outperform” rating in a research note on Monday, April 1st. Four equities research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $53.31.

Hedge Funds Weigh In On OneMain

Several institutional investors and hedge funds have recently bought and sold shares of the company. Norges Bank acquired a new stake in shares of OneMain during the 4th quarter worth approximately $62,732,000. Brave Warrior Advisors LLC increased its stake in OneMain by 21.1% during the fourth quarter. Brave Warrior Advisors LLC now owns 6,416,800 shares of the financial services provider’s stock worth $315,707,000 after acquiring an additional 1,118,166 shares during the last quarter. Argent Capital Management LLC raised its position in OneMain by 608.1% in the first quarter. Argent Capital Management LLC now owns 503,613 shares of the financial services provider’s stock valued at $25,730,000 after purchasing an additional 432,492 shares during the period. Goldman Sachs Group Inc. lifted its stake in shares of OneMain by 36.8% in the 4th quarter. Goldman Sachs Group Inc. now owns 1,366,621 shares of the financial services provider’s stock valued at $67,238,000 after purchasing an additional 367,823 shares during the last quarter. Finally, Adage Capital Partners GP L.L.C. purchased a new position in shares of OneMain during the 3rd quarter worth $12,613,000. 85.82% of the stock is currently owned by institutional investors and hedge funds.

OneMain Stock Performance

The stock has a market capitalization of $6.09 billion, a price-to-earnings ratio of 9.90, a P/E/G ratio of 0.72 and a beta of 1.63. The business has a 50-day moving average of $48.87 and a 200-day moving average of $45.58.

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.