OneMain (NYSE:OMF) Trading 7.4% Higher After Dividend Announcement

OneMain Holdings, Inc. (NYSE:OMF)’s stock price was up 7.4% during trading on Wednesday after the company announced a dividend. The stock traded as high as $51.63 and last traded at $50.99. Approximately 346,857 shares were traded during trading, a decline of 65% from the average daily volume of 983,246 shares. The stock had previously closed at $47.48.

The newly announced dividend which will be paid on Monday, November 18th. Shareholders of record on Tuesday, November 12th will be issued a dividend of $1.04 per share. This represents a $4.16 annualized dividend and a yield of 8.37%. The ex-dividend date is Tuesday, November 12th. OneMain’s dividend payout ratio is currently 91.03%.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on OMF shares. Royal Bank of Canada reaffirmed an “outperform” rating and set a $58.00 price target on shares of OneMain in a report on Wednesday, October 16th. JPMorgan Chase & Co. lowered their price target on shares of OneMain from $56.00 to $51.00 and set an “overweight” rating on the stock in a report on Monday, October 7th. Deutsche Bank Aktiengesellschaft lowered their price target on shares of OneMain from $64.00 to $61.00 and set a “buy” rating on the stock in a report on Tuesday, July 9th. StockNews.com downgraded shares of OneMain from a “buy” rating to a “hold” rating in a report on Saturday, October 26th. Finally, Northland Securities boosted their target price on shares of OneMain from $53.00 to $55.00 and gave the stock a “market perform” rating in a report on Thursday, August 1st. Seven analysts have rated the stock with a hold rating and eight have given a buy rating to the company’s stock. According to data from MarketBeat, OneMain currently has a consensus rating of “Moderate Buy” and a consensus target price of $55.08.

OneMain Price Performance

The firm has a market cap of $5.95 billion, a P/E ratio of 10.88, a PEG ratio of 0.98 and a beta of 1.56. The stock’s 50-day simple moving average is $47.08 and its two-hundred day simple moving average is $48.32.

OneMain (NYSE:OMF) last issued its earnings results on Wednesday, July 31st. The financial services provider reported $1.02 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.90 by $0.12. The firm had revenue of $1.22 billion during the quarter, compared to analyst estimates of $918.74 million. OneMain had a net margin of 11.27% and a return on equity of 19.31%. During the same period in the previous year, the firm earned $1.01 earnings per share. As a group, sell-side analysts expect that OneMain Holdings, Inc. will post 4.91 earnings per share for the current year.

Insider Activity

In other news, COO Micah R. Conrad sold 2,500 shares of the business’s stock in a transaction on Wednesday, August 14th. The shares were sold at an average price of $45.75, for a total transaction of $114,375.00. Following the completion of the sale, the chief operating officer now directly owns 117,025 shares of the company’s stock, valued at approximately $5,353,893.75. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. In other news, COO Micah R. Conrad sold 2,500 shares of the business’s stock in a transaction on Wednesday, August 14th. The shares were sold at an average price of $45.75, for a total transaction of $114,375.00. Following the completion of the sale, the chief operating officer now directly owns 117,025 shares of the company’s stock, valued at approximately $5,353,893.75. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Michael A. Hedlund sold 2,400 shares of the business’s stock in a transaction on Monday, September 16th. The shares were sold at an average price of $46.00, for a total transaction of $110,400.00. Following the sale, the senior vice president now directly owns 25,747 shares of the company’s stock, valued at $1,184,362. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 32,300 shares of company stock valued at $1,534,275. 0.45% of the stock is currently owned by company insiders.

Institutional Trading of OneMain

A number of hedge funds have recently added to or reduced their stakes in OMF. PNC Financial Services Group Inc. lifted its stake in OneMain by 6.1% in the fourth quarter. PNC Financial Services Group Inc. now owns 3,476 shares of the financial services provider’s stock worth $171,000 after acquiring an additional 200 shares during the period. Sumitomo Mitsui Trust Holdings Inc. lifted its position in shares of OneMain by 6.9% during the first quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 36,536 shares of the financial services provider’s stock valued at $1,867,000 after buying an additional 2,367 shares during the last quarter. Commonwealth Equity Services LLC increased its holdings in shares of OneMain by 6.5% during the first quarter. Commonwealth Equity Services LLC now owns 10,234 shares of the financial services provider’s stock valued at $523,000 after acquiring an additional 622 shares in the last quarter. Central Pacific Bank Trust Division acquired a new position in shares of OneMain during the first quarter valued at about $383,000. Finally, WBI Investments LLC increased its holdings in shares of OneMain by 385.9% during the first quarter. WBI Investments LLC now owns 42,257 shares of the financial services provider’s stock valued at $2,159,000 after acquiring an additional 33,560 shares in the last quarter. 85.82% of the stock is owned by hedge funds and other institutional investors.

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.