OneMain (NYSE:OMF) Shares Gap Down on Disappointing Earnings

OneMain Holdings, Inc. (NYSE:OMF – Get Rating)’s stock price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $39.75, but opened at $37.70. OneMain shares last traded at $36.32, with a volume of 20,212 shares trading hands.

The financial services provider reported $1.87 EPS for the quarter, missing analysts’ consensus estimates of $1.94 by ($0.07). OneMain had a net margin of 25.60% and a return on equity of 40.03%. During the same quarter last year, the business posted $2.66 EPS.

Analysts Set New Price Targets

OMF has been the topic of several research analyst reports. JMP Securities decreased their price objective on shares of OneMain from $68.00 to $58.00 and set a “market outperform” rating on the stock in a research note on Friday, July 15th. Citigroup decreased their price target on shares of OneMain from $72.00 to $54.00 in a research note on Monday, May 2nd. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $75.00 price objective on shares of OneMain in a report on Friday, April 29th. Compass Point dropped their target price on shares of OneMain to $63.00 in a research report on Monday, July 4th. Finally, Wells Fargo & Company lowered OneMain from an “overweight” rating to an “equal weight” rating and reduced their price target for the stock from $65.00 to $40.00 in a research report on Wednesday, July 13th. Five analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. According to MarketBeat.com, OneMain currently has a consensus rating of “Moderate Buy” and an average price target of $61.80.

Insiders Place Their Bets

In other OneMain news, CEO Douglas H. Shulman bought 2,500 shares of the business’s stock in a transaction on Tuesday, May 10th. The stock was purchased at an average cost of $40.64 per share, for a total transaction of $101,600.00. Following the completion of the purchase, the chief executive officer now directly owns 348,612 shares of the company’s stock, valued at $14,167,591.68. The acquisition was disclosed in a filing with the SEC, which is available at this link. In related news, CEO Douglas H. Shulman acquired 2,500 shares of the firm’s stock in a transaction that occurred on Tuesday, May 10th. The stock was acquired at an average cost of $40.64 per share, for a total transaction of $101,600.00. Following the completion of the acquisition, the chief executive officer now directly owns 348,612 shares of the company’s stock, valued at approximately $14,167,591.68. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Douglas H. Shulman acquired 1,000 shares of the firm’s stock in a transaction that occurred on Friday, May 20th. The stock was bought at an average price of $40.23 per share, with a total value of $40,230.00. Following the completion of the acquisition, the chief executive officer now directly owns 349,612 shares of the company’s stock, valued at $14,064,890.76. The disclosure for this purchase can be found here. Company insiders own 0.13% of the company’s stock.

Institutional Trading of OneMain

A number of large investors have recently bought and sold shares of the business. Lazard Asset Management LLC boosted its position in shares of OneMain by 19.1% during the 4th quarter. Lazard Asset Management LLC now owns 1,353 shares of the financial services provider’s stock worth $67,000 after purchasing an additional 217 shares in the last quarter. Lindbrook Capital LLC lifted its position in shares of OneMain by 66.3% during the 1st quarter. Lindbrook Capital LLC now owns 547 shares of the financial services provider’s stock worth $26,000 after buying an additional 218 shares in the last quarter. Brinker Capital Investments LLC lifted its position in shares of OneMain by 1.8% during the 4th quarter. Brinker Capital Investments LLC now owns 16,913 shares of the financial services provider’s stock worth $846,000 after buying an additional 300 shares in the last quarter. Wedbush Securities Inc. lifted its position in shares of OneMain by 1.3% during the 2nd quarter. Wedbush Securities Inc. now owns 23,387 shares of the financial services provider’s stock worth $874,000 after buying an additional 307 shares in the last quarter. Finally, CWM LLC increased its stake in shares of OneMain by 1.0% during the 1st quarter. CWM LLC now owns 37,299 shares of the financial services provider’s stock worth $1,768,000 after purchasing an additional 365 shares during the last quarter. 84.43% of the stock is currently owned by institutional investors and hedge funds.

OneMain Stock Performance

The company’s 50 day moving average price is $39.90 and its 200-day moving average price is $45.31. The company has a market cap of $4.67 billion, a PE ratio of 4.07 and a beta of 1.71.

About OneMain

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OneMain Holdings, Inc, a financial service holding company, engages in the consumer finance and insurance businesses. The company originates, underwrites, and services personal loans secured by automobiles, other titled collateral, or unsecured. The company also offers credit insurance products comprising life, disability, and involuntary unemployment insurance; optional non-credit insurance; guaranteed asset protection coverage as a waiver product or insurance; and membership plans.