Michael A. Hedlund, the Senior Vice President and Group Controller at OneMain Holdings, Inc. (NYSE:OMF), recently sold 1,992 shares of the company's common stock. The shares were sold at a price of $52 each, resulting in a total transaction value of $103,584. This sale was conducted under a pre-established Rule 10b5-1 trading plan set up in June 2024. Following the transaction, Hedlund holds 18,955 shares directly.
In other recent news, OneMain Holdings reported strong third-quarter earnings, surpassing consensus estimates with an adjusted earnings per share (EPS) of $1.26. This positive performance was attributed to a quarter-over-quarter improvement in asset yield and robust origination volumes of $3.7 billion. Compass Point consequently raised the price target for OneMain from $60 to $63, maintaining a Buy rating on the stock.
Furthermore, OneMain's net charge-offs (NCOs) for the third quarter were reported at 7.33%, with commercial and industrial (C&I) 30-89 day delinquencies decreasing by 27 basis points to 3.01%. The company's management projected an improvement in NCO trends going into 2025, which is anticipated to enhance capital generation.
OneMain's third-quarter total revenue rose to $1.5 billion, marking an 8% increase from the same quarter the previous year, and loan originations saw a 13% rise. The company also successfully issued $750 million in unsecured social bonds and made progress in integrating its recent acquisition, Foursight. Analysts anticipate that OneMain Financial's managed receivables will exceed $24.5 billion for 2024. These recent developments reflect OneMain Financial's commitment to maintaining high credit quality and operational efficiency.
InvestingPro Insights
As Michael A. Hedlund reduces his stake in OneMain Holdings, Inc. (NYSE:OMF), investors may find value in examining the company's current financial position and market performance. According to InvestingPro data, OMF boasts a market capitalization of $5.95 billion and a price-to-earnings ratio of 10.86, suggesting the stock may be reasonably valued relative to its earnings.
One of the most striking InvestingPro Tips highlights that OMF "pays a significant dividend to shareholders." This is corroborated by the impressive dividend yield of 8.38%, which could be particularly attractive to income-focused investors. Additionally, the company has shown a 4% dividend growth over the last twelve months, indicating a commitment to returning value to shareholders.
Another relevant InvestingPro Tip notes that the "stock price movements are quite volatile." This volatility is reflected in the company's recent price performance, with a 49.63% total return over the past year, significantly outperforming many of its peers. However, potential investors should be aware that such volatility can present both opportunities and risks.
For those seeking a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide deeper insights into OMF's investment potential. These additional tips, along with real-time metrics and expert analysis, are available to InvestingPro subscribers, offering a more nuanced view of the company's prospects in the context of Hedlund's recent stock sale.
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