OneMain (NYSE:OMF) Stock Price Breaks Below Fifty Day Moving Average – Should You Sell?

OneMain Holdings, Inc. (NYSE:OMF)’s stock price crossed below its 50 day moving average during trading on Monday. The stock has a 50 day moving average of $60.37 and traded as low as $55.42. OneMain shares last traded at $55.8210, with a volume of 783,761 shares traded.

Analyst Upgrades and Downgrades

OMF has been the topic of a number of recent research reports. Evercore set a $60.00 target price on OneMain in a research report on Thursday, October 1st. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating on shares of OneMain in a research report on Friday, July 10th. Weiss Ratings downgraded OneMain from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, October 16th. Citigroup reaffirmed a “market outperform” rating on shares of OneMain in a research note on Thursday, July 30th. Finally, TD Cowen decreased their target price on shares of OneMain from $68.00 to $66.00 and set a “buy” rating for the company in a research report on Tuesday, October 6th. Eight equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $67.09.

OneMain Price Performance

The business has a 50-day moving average of $60.06 and a 200-day moving average of $58.77. The firm has a market cap of $6.54 billion, a price-to-earnings ratio of 8.30, a P/E/G ratio of 0.63 and a beta of 1.24.

OneMain (NYSE:OMF) last issued its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $1.31 EPS for the quarter, beating the consensus estimate of $1.26 by $0.05. The firm had revenue of $1.62 billion during the quarter, compared to analysts’ expectations of $1.28 billion. OneMain had a return on equity of 23.49% and a net margin of 13.92%. The business’s quarterly revenue was up 6.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.45 earnings per share. As a group, equities analysts anticipate that OneMain Holdings, Inc. will post 6.73 EPS for the current fiscal year.

OneMain Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Monday, August 10th were given a dividend of $1.05 per share. The ex-dividend date of this dividend was Monday, August 10th. This represents a $4.20 annualized dividend and a dividend yield of 7.4%. OneMain’s payout ratio is 63.25%.

Insider Buying and Selling

In other news, COO Micah Conrad sold 5,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $65.40, for a total transaction of $327,000.00. Following the sale, the chief operating officer owned 91,250 shares in the company, valued at $5,967,750. This represents a 5.19% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, SVP Michael Hedlund sold 2,500 shares of the stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $64.00, for a total transaction of $160,000.00. Following the completion of the sale, the senior vice president owned 10,627 shares of the company’s stock, valued at approximately $680,128. This represents a 19.04% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.29% of the company’s stock.

Institutional Investors Weigh In On OneMain

Institutional investors have recently made changes to their positions in the company. GK Wealth Management LLC acquired a new stake in OneMain during the third quarter worth approximately $45,000. Freestone Grove Partners LP bought a new stake in shares of OneMain during the 2nd quarter worth approximately $61,000. Parkside Financial Bank & Trust lifted its holdings in shares of OneMain by 32.2% during the 2nd quarter. Parkside Financial Bank & Trust now owns 1,011 shares of the financial services provider’s stock worth $62,000 after acquiring an additional 246 shares during the period. Hillsdale Investment Management Inc. boosted its position in shares of OneMain by 37.2% during the 1st quarter. Hillsdale Investment Management Inc. now owns 1,180 shares of the financial services provider’s stock worth $63,000 after acquiring an additional 320 shares in the last quarter. Finally, Root Financial Partners LLC boosted its position in shares of OneMain by 128.4% during the 1st quarter. Root Financial Partners LLC now owns 1,222 shares of the financial services provider’s stock worth $65,000 after acquiring an additional 687 shares in the last quarter. Institutional investors own 85.82% of the company’s stock.

About OneMain

OneMain Holdings, Inc, operating under the OneMain Financial brand, is a consumer finance company that provides personal lending and related financial services primarily to non-prime consumers in the United States. The company serves customers through a combination of branch locations, online and mobile channels, and centralized customer service operations.

OneMain’s principal products include secured and unsecured personal loans, which customers may use for debt consolidation, home improvements, major purchases, and other personal expenses.