Traders Purchase Large Volume of OneMain Put Options (NYSE:OMF)

OneMain Holdings, Inc. (NYSE:OMF) was the target of some unusual options trading activity on Friday. Stock traders bought 4,012 put options on the stock. This is an increase of 444% compared to the average daily volume of 738 put options.

Insider Buying and Selling

In related news, CEO Douglas H. Shulman sold 35,000 shares of the stock in a transaction that occurred on Tuesday, July 29th. The shares were sold at an average price of $59.47, for a total transaction of $2,081,450.00. Following the completion of the sale, the chief executive officer directly owned 275,100 shares of the company’s stock, valued at $16,360,197. This represents a 11.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.40% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On OneMain

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in OMF. Alpine Bank Wealth Management purchased a new stake in OneMain in the 1st quarter worth approximately $27,000. SVB Wealth LLC purchased a new stake in OneMain in the 1st quarter worth approximately $34,000. BI Asset Management Fondsmaeglerselskab A S purchased a new stake in OneMain in the 1st quarter worth approximately $42,000. Headlands Technologies LLC purchased a new stake in OneMain in the 1st quarter worth approximately $46,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. raised its holdings in shares of OneMain by 79.4% during the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 820 shares of the financial services provider’s stock valued at $47,000 after purchasing an additional 363 shares in the last quarter. Hedge funds and other institutional investors own 85.82% of the company’s stock.

OneMain Stock Down 0.2%

OMF stock opened at $56.26 on Friday. OneMain has a 12-month low of $38.00 and a 12-month high of $63.24. The company has a market cap of $6.69 billion, a price-to-earnings ratio of 10.15, a PEG ratio of 0.44 and a beta of 1.32. The company has a 50 day moving average of $59.08 and a two-hundred day moving average of $54.14.

OneMain (NYSE:OMF) last released its earnings results on Friday, July 25th. The financial services provider reported $1.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.25 by $0.20. OneMain had a net margin of 12.63% and a return on equity of 20.65%. The company had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.19 billion. During the same quarter in the prior year, the firm earned $1.02 EPS. The company’s revenue was up 7.1% compared to the same quarter last year. On average, research analysts anticipate that OneMain will post 6.46 EPS for the current year.

OneMain Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, August 13th. Shareholders of record on Monday, August 4th were given a $1.04 dividend. The ex-dividend date was Monday, August 4th. This represents a $4.16 dividend on an annualized basis and a yield of 7.4%. OneMain’s dividend payout ratio is presently 75.09%.

Wall Street Analyst Weigh In

Several brokerages recently commented on OMF. JPMorgan Chase & Co. upped their price target on shares of OneMain from $50.00 to $63.00 and gave the company an “overweight” rating in a research report on Friday, July 11th. Barclays upped their price target on shares of OneMain from $48.00 to $56.00 and gave the company an “equal weight” rating in a research report on Tuesday, July 8th. Wells Fargo & Company began coverage on shares of OneMain in a research report on Monday, August 25th. They issued an “equal weight” rating for the company. Finally, Weiss Ratings restated a “buy (b-)” rating on shares of OneMain in a research report on Saturday, September 27th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, OneMain currently has a consensus rating of “Moderate Buy” and an average target price of $61.50.

About OneMain

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