Micah R. Conrad, Executive Vice President and Chief Operating Officer of OneMain Holdings, Inc. (NYSE:OMF), recently sold shares in the company valued at approximately $130,000. The transaction, which took place on October 30, involved the sale of 2,500 shares at a price of $52 each. Following this sale, Conrad holds 102,239 shares of OneMain Holdings. This transaction was conducted under a Rule 10b5-1 trading plan established earlier this year on May 14.
In other recent news, OneMain Holdings reported robust financial performance in the third quarter of 2024, exceeding consensus estimates with an adjusted earnings per share (EPS) of $1.26. This was attributed to an improvement in asset yield and strong origination volumes that reached $3.7 billion. Analyst firm Compass Point subsequently raised the price target for OneMain from $60 to $63, maintaining a Buy rating.
OneMain's net charge-offs (NCOs) were reported at 7.33%, and commercial and industrial (C&I) 30-89 day delinquencies decreased to 3.01%, indicating improved credit management. The company's management anticipates an improvement in NCO trends going into 2025, which is expected to bolster capital generation. OneMain's third-quarter performance also included a total revenue of $1.5 billion, marking an 8% increase from the same quarter the previous year, and a 13% rise in loan originations.
In addition, the company issued $750 million in unsecured social bonds and made progress in integrating its recent acquisition, Foursight. These developments suggest a positive outlook for OneMain, with the company's shares offering a compelling total return at current levels, particularly given the anticipated inflection in capital generation in fiscal year 2025. These are among the recent developments that investors may want to consider.
InvestingPro Insights
While Micah R. Conrad's recent sale of OneMain Holdings, Inc. (NYSE:OMF) shares may raise questions, a closer look at the company's financial metrics and market performance provides valuable context. According to InvestingPro data, OneMain Holdings boasts a market capitalization of $5.95 billion and a P/E ratio of 10.86, suggesting the stock may be reasonably valued relative to its earnings.
Investors should note that OMF pays a significant dividend to shareholders, with a current dividend yield of 8.38%. This high yield, coupled with a 4% dividend growth over the last twelve months, could be attractive for income-focused investors. The company's profitability is also noteworthy, with a gross profit margin of 92.37% for the last twelve months as of Q3 2023.
InvestingPro Tips highlight that OneMain Holdings has been profitable over the last twelve months and analysts predict continued profitability this year. Additionally, the stock has shown a strong return over the last five years, with a one-year price total return of 49.63% as of the most recent data.
It's worth mentioning that stock price movements for OMF are quite volatile, which could explain why executives might engage in planned sales under Rule 10b5-1 trading plans. Potential investors should be aware that 8 analysts have revised their earnings downwards for the upcoming period, which may indicate some caution in short-term expectations.
For those interested in a deeper analysis, InvestingPro offers 5 additional tips that could provide further insights into OneMain Holdings' financial health and market position.
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