Barclays Initiates Coverage of OneMain Holdings (OMF) with Overweight Recommendation

Fintel reports that on November 15, 2023, Barclays initiated coverage of OneMain Holdings (NYSE:OMF) with a Overweight recommendation.

Analyst Price Forecast Suggests 25.10% Upside

As of November 1, 2023, the average one-year price target for OneMain Holdings is 48.80. The forecasts range from a low of 38.38 to a high of $57.75. The average price target represents an increase of 25.10% from its latest reported closing price of 39.01.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for OneMain Holdings is 3,703MM, an increase of 44.82%. The projected annual non-GAAP EPS is 7.09.

OneMain Holdings Declares $1.00 Dividend

On October 25, 2023 the company declared a regular quarterly dividend of $1.00 per share ($4.00 annualized). Shareholders of record as of November 6, 2023 received the payment on November 10, 2023. Previously, the company paid $1.00 per share.

At the current share price of $39.01 / share, the stock's dividend yield is 10.25%.

Looking back five years and taking a sample every week, the average dividend yield has been 13.75%, the lowest has been 2.28%, and the highest has been 36.96%. The standard deviation of yields is 7.82 (n=236).

The current dividend yield is 0.45 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is 0.73. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is -0.37%.

What is the Fund Sentiment?

There are 690 funds or institutions reporting positions in OneMain Holdings. This is an increase of 11 owner(s) or 1.62% in the last quarter. Average portfolio weight of all funds dedicated to OMF is 0.34%, an increase of 2.35%. Total shares owned by institutions increased in the last three months by 0.22% to 116,741K shares. OMF / OneMain Holdings Inc Put/Call Ratios The put/call ratio of OMF is 0.65, indicating a bullish outlook.

What are Other Shareholders Doing?

OMF / OneMain Holdings Inc Shares Held by Institutions

Capital International Investors holds 9,136K shares representing 7.62% ownership of the company. In it's prior filing, the firm reported owning 8,836K shares, representing an increase of 3.28%. The firm decreased its portfolio allocation in OMF by 0.23% over the last quarter.

ANCFX - AMERICAN FUNDS FUNDAMENTAL INVESTORS holds 6,877K shares representing 5.74% ownership of the company. No change in the last quarter.

Brave Warrior Advisors holds 5,299K shares representing 4.42% ownership of the company. In it's prior filing, the firm reported owning 5,352K shares, representing a decrease of 1.00%. The firm decreased its portfolio allocation in OMF by 14.17% over the last quarter.

Price T Rowe Associates holds 4,462K shares representing 3.72% ownership of the company. In it's prior filing, the firm reported owning 4,544K shares, representing a decrease of 1.85%. The firm decreased its portfolio allocation in OMF by 58.17% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 3,761K shares representing 3.14% ownership of the company. In it's prior filing, the firm reported owning 3,730K shares, representing an increase of 0.83%. The firm increased its portfolio allocation in OMF by 9.62% over the last quarter.

OneMain Holdings Background Information
(This description is provided by the company.)

OneMain Financial has been offering responsible and transparent loans for over 100 years. With almost 1,500 locations throughout 44 states, the company is committed to helping people with their personal loan needs. OneMain and its team members are dedicated to the communities where they live and work.

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This story originally appeared on Fintel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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