OneMain Holdings Inc. [OMF] gain 35.48% so far this year. What now?

OneMain Holdings Inc. [NYSE: OMF] stock went on a downward path that fall over -0.70% on Friday, amounting to a one-week price decrease of less than -0.83%. The company report on July 30, 2021 that OneMain Holdings, Inc. Announces Pricing of Upsized Secondary Offering of Common Stock.

OneMain Holdings, Inc. (NYSE: OMF) (the “Company”) announced the pricing of its previously-announced underwritten public offering of 9.5 million shares of the Company’s common stock (the “base offering”) by an entity managed by affiliates of Apollo Global Management, Inc. (the “selling stockholder”). The base offering has been upsized from 8.0 million to 9.5 million shares of Company common stock, which represents approximately 7% of the Company’s outstanding common stock as of July 15, 2021. The Company is not selling any shares and will not receive any proceeds from the proposed offering. The offering is expected to close on August 3, 2021, subject to satisfaction of customary closing conditions.

In addition, the Company has agreed to purchase 1.7 million shares of common stock that are the subject of the base offering at a price per share equal to the price at which the underwriter will purchase such shares from the selling stockholder in the offering (the “Concurrent Share Buyback”). The Concurrent Share Buyback has been upsized from 1.6 million to 1.7 million shares. The Concurrent Share Buyback is contingent on, and expected to occur simultaneously with, the closing of the base offering. The Company intends to fund the Concurrent Share Buyback from existing cash on hand. The underwriter will not receive any compensation for the shares being repurchased by the Company.

Over the last 12 months, OMF stock rose by 140.79%. The one-year OneMain Holdings Inc. stock forecast points to a potential upside of 9.88. The average equity rating for OMF stock is currently 1.70, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $8.22 billion, with 134.26 million shares outstanding and 129.32 million shares in the current float. Compared to the average trading volume of 1.14M shares, OMF stock reached a trading volume of 5340707 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on OneMain Holdings Inc. [OMF]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for OMF shares is $67.69 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on OMF stock is a recommendation set at 1.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

BMO Capital Markets have made an estimate for OneMain Holdings Inc. shares, keeping their opinion on the stock as Market Perform, with their previous recommendation back on April 19, 2021. While these analysts kept the previous recommendation, Barclays raised their target price from $42 to $63. The new note on the price target was released on December 10, 2020, representing the official price target for OneMain Holdings Inc. stock. Previously, the target price had yet another raise to $35, while RBC Capital Mkts analysts kept a Outperform rating on OMF stock. On July 30, 2019, analysts increased their price target for OMF shares from 35 to 45.

The Average True Range (ATR) for OneMain Holdings Inc. is set at 1.85, with the Price to Sales ratio for OMF stock in the period of the last 12 months amounting to 1.68. The Price to Book ratio for the last quarter was 2.31, with the Price to Cash per share for the same quarter was set at 13.26. Price to Free Cash Flow for OMF in the course of the last twelve months was 7.24.

OMF Stock Performance Analysis:

OneMain Holdings Inc. [OMF] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.83. With this latest performance, OMF shares gained by 1.82% in over the last four-week period, additionally plugging by 40.13% over the last 6 months – not to mention a rise of 140.79% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for OMF stock in for the last two-week period is set at 54.10, with the RSI for the last a single of trading hit 54.29, and the three-weeks RSI is set at 54.24 for OneMain Holdings Inc. [OMF]. The present Moving Average for the last 50 days of trading for this stock 59.25, while it was recorded at 60.85 for the last single week of trading, and 50.96 for the last 200 days.

Insight into OneMain Holdings Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and OneMain Holdings Inc. [OMF] shares currently have an operating margin of +68.86 and a Gross Margin at +85.77. OneMain Holdings Inc.’s Net Margin is presently recorded at +14.80.

Return on Total Capital for OMF is now 15.75, given the latest momentum, and Return on Invested Capital for the company is 3.53. Return on Equity for this stock inclined to 18.79, with Return on Assets sitting at 3.22. When it comes to the capital structure of this company, OneMain Holdings Inc. [OMF] has a Total Debt to Total Equity ratio set at 522.09. Additionally, OMF Total Debt to Total Capital is recorded at 83.93, with Total Debt to Total Assets ending up at 79.95. Long-Term Debt to Equity for the company is recorded at 501.92, with the Long-Term Debt to Total Capital now at 80.68.

Reflecting on the efficiency of the workforce at the company, OneMain Holdings Inc. [OMF] managed to generate an average of $87,952 per employee. Receivables Turnover for the company is 0.31 with a Total Asset Turnover recorded at a value of 0.22.

OMF Stock EPS

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for OMF. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for OneMain Holdings Inc. go to 4.86%.

OneMain Holdings Inc. [OMF] Insider Position Details

There are presently around $7,199 million, or 96.40% of OMF stock, in the hands of institutional investors. The top three institutional holders of OMF stocks are: APOLLO MANAGEMENT HOLDINGS, L.P. with ownership of 36,283,570, which is approximately -16.746% of the company’s market cap and around 0.20% of the total institutional ownership; FMR LLC, holding 12,057,760 shares of the stock with an approximate value of $735.52 million in OMF stocks shares; and VANGUARD GROUP INC, currently with $446.68 million in OMF stock with ownership of nearly 5.792% of the company’s market capitalization.

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Positions in OneMain Holdings Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 204 institutional holders increased their position in OneMain Holdings Inc. [NYSE:OMF] by around 17,712,571 shares. Additionally, 128 investors decreased positions by around 15,977,348 shares, while 29 investors held positions by with 84,320,316 shares. The mentioned changes placed institutional holdings at 118,010,235 shares, according to the latest SEC report filing. OMF stock had 79 new institutional investments in for a total of 8,718,985 shares, while 41 institutional investors sold positions of 1,760,747 shares during the same period.

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