Northland Securities Upgrades OneMain (NYSE:OMF) to “Outperform”

OneMain (NYSE:OMF) was upgraded by investment analysts at Northland Securities from a “market perform” rating to an “outperform” rating in a note issued to investors on Wednesday, June 26th, Marketbeat.com reports. The firm currently has a $40.00 price target on the financial services provider’s stock, up from their prior price target of $38.00. Northland Securities’ price target would indicate a potential upside of 15.67% from the company’s current price.

The analysts wrote, “We believe a couple catalysts exist for OMF. Credit has been trending better. Based on recent trust data from an unsecured trust closed in September 2017, net charge-offs have been relatively flat and declined in a point on the curve where previous OMF vintages had NCOs still climbing. We believe OMF overall is running slightly better than its net charge-off guidance of <6.5% for 2019. We believe 2Q19 earnings could see a slight beat. With a combination of conservative underwriting and secured lending now totaling 49% of the book, OMF is beginning to see some benefits. In addition, with unemployment trends and slightly better wages, this better credit trend could continue for the rest of 2019 and into 2020. We note 10 bps of net charge-offs higher or lower equals ~$0.10 +/- impact to EPS as OMF remains leveraged to credit trends."”

Other equities analysts also recently issued research reports about the company. Wedbush reiterated an “outperform” rating and set a $124.00 price target on shares of New Relic in a research report on Wednesday, May 15th. Zacks Investment Research downgraded W. R. Grace & Co from a “buy” rating to a “hold” rating in a research report on Wednesday, May 1st. One analyst has rated the stock with a sell rating, three have issued a hold rating and five have given a buy rating to the company’s stock. OneMain currently has a consensus rating of “Hold” and an average target price of $40.38.

NYSE:OMF traded up $0.57 during mid-day trading on Wednesday, hitting $34.58. 260,792 shares of the company’s stock traded hands, compared to its average volume of 535,675. The stock has a fifty day moving average of $32.66. The company has a market cap of $4.74 billion, a P/E ratio of 6.83, a P/E/G ratio of 0.61 and a beta of 2.41. OneMain has a twelve month low of $22.47 and a twelve month high of $37.29.

OneMain (NYSE:OMF) last posted its earnings results on Monday, April 29th. The financial services provider reported $1.37 EPS for the quarter, topping the consensus estimate of $1.32 by $0.05. The firm had revenue of $720.00 million for the quarter, compared to analyst estimates of $735.94 million. OneMain had a return on equity of 19.22% and a net margin of 11.73%. During the same period last year, the company earned $1.18 earnings per share. On average, equities research analysts predict that OneMain will post 5.69 earnings per share for the current year.

Institutional investors have recently bought and sold shares of the company. Campbell & CO Investment Adviser LLC acquired a new stake in shares of OneMain during the 2nd quarter worth $519,000. WINTON GROUP Ltd acquired a new stake in OneMain in the 2nd quarter valued at $541,000. First Trust Advisors LP increased its holdings in OneMain by 20.5% in the 1st quarter. First Trust Advisors LP now owns 373,912 shares of the financial services provider’s stock valued at $11,872,000 after purchasing an additional 63,546 shares in the last quarter. Varde Management L.P. acquired a new stake in OneMain in the 1st quarter valued at $360,500,000. Finally, FMR LLC increased its holdings in OneMain by 5.2% in the 1st quarter. FMR LLC now owns 12,225,438 shares of the financial services provider’s stock valued at $388,157,000 after purchasing an additional 606,258 shares in the last quarter. 90.39% of the stock is owned by institutional investors and hedge funds.

OneMain Company Profile

OneMain Holdings, Inc, through its subsidiaries, provides consumer finance and insurance products and services. The company operates in two segments, Consumer and Insurance, and Acquisitions and Servicing. It provides secured and unsecured personal loans; credit insurance products, such as life, disability, and involuntary unemployment insurance products; non-credit insurance; and auto membership plans, as well as retail sales finance services.

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Analyst Recommendations for OneMain (NYSE:OMF)

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