Nisa Investment Advisors LLC has recently reduced its stake in OneMain Holdings, Inc. (NYSE:OMF) by 13.4%, according to a recent filing with the Securities & Exchange Commission. Nisa’s move to sell 3,969 shares of OneMain left them holding a total of 25,697 shares, with an estimated value of $856,000 based on its most recent SEC filing.
OneMain is a consumer finance company that offers origination, underwriting and servicing of personal loans for primarily non-prime customers. The company operates through its Consumer and Insurance segment which provides services like secured and unsecured personal loans, voluntary credit and non-credit insurance and related products via its combined branch network, digital platform and centralized operations.
The firm’s quarterly earnings were released on Tuesday, April 25th where it reported an earning per share (EPS)of $1.46 for the quarter. This result was below the expected consensus estimate of $1.59 per share by ($0.13). Despite this unwanted shortfall in earnings OneMain sustained a net margin of 17.03% and return on equity reached an impressive 26.05%.
During Q1’2023 business revenue for OneMain was at $1.09 billion as compared to analyst forecasts that had predicted figures of around $864.65 million only proving that the investments from previous years have been well spent setting off high profitability figures. In comparison with the same quarter one year ago OneMain achieved only $2.36 earnings per share further highlighting the substantial growth achieved today which is due to their innovative methods in offering much-needed financial solutions even to consumers who are not categorized under prime loans; this proves valuable in terms of building trust between customers and investors alike.
As a group another trend that emerged showcased how industry analysts expect that OMF will report about 6.37 EPS for the current fiscal year thanks to impacts of further investments, digital platform adaptions and better performance overall. While the financial services sector continues to be under scrutiny, OneMain will have to maintain its trajectory of increasing profitability in order to solidly establish itself as a company that is both successful and responsible.
OneMain Holdings: Institutional Investors Boost Stake as Company Offers Dividend Payout and Potential Growth Opportunities
OneMain Holdings, Inc. is a consumer finance company that primarily provides personal loans to non-prime customers. As of April 28, 2023, the market cap of OneMain is valued at $4.69 billion with a price-to-earnings ratio of 5.52 and a beta of 1.69. Despite fluctuations in the market, OneMain has caught the attention of several institutional investors and hedge funds.
Among them, JPMorgan Chase & Co. has grown its holdings in shares of OneMain by 43.2% during the first quarter, owning now over 200,000 shares valued at $9.5 million after acquiring an additional 60,428 shares during that period. Raymond James Financial Services Advisors Inc.have also boosted their holdings in OneMain by more than one hundred percent (106.2%) during the same quarter.
Cambridge Investment Research Advisors Inc., Bank of Montreal Can and MetLife Investment Management LLC have all obtained new stakes in OneMain with investments ranging from $104,000 to $534,000 during the first quarter alone.
Incorporating branches network available for digital services together with centralized operations proves beneficial for not only easy access but also credit and non-credit insurance related products via OneMain’s Consumer and Insurance segment.
The recent declaration of a dividend payout trimester which will be paid on May 12th indeed adds even more value as shareholders will receive a $1 dividend per share owned with record holding due on May 5th for an annualized yield offering return approximately over ten percent (10.29%). As such it represents an opportunistic investment option that has been rated positively yet cautiously by analysts alike Bloomberg.com shows that among thirteen research analysts four provided “overweight” recommendation other nine providing “moderate buy”; none recommending against buying it; giving an average target price valuation around $50 to describe moderate expected growth predictions despite fluctuations on OneMain stock prices.