WEST PALM BEACH, Fla. - Ocwen Financial (NYSE:OCN) Corporation, a prominent mortgage servicer and originator, announced that following shareholder approval, it will change its name to Onity Group Inc.
The transition to the new name and trading symbol ONIT will be effective on the New York Stock Exchange starting June 10, 2024. This move is part of a broader rebranding strategy, with the company's primary brands PHH Mortgage Corporation and Liberty Reverse Mortgage expected to adopt the Onity name in the fall of 2024.
Glen A. Messina, Chair, President, and CEO of Ocwen, expressed satisfaction with the shareholder endorsement and highlighted the rebranding as a reflection of the company's evolution and commitment to stakeholders. The name change is formalized by the filing of Articles of Amendment to its Articles of Incorporation in the State of Florida.
The company's common stock will continue to trade under the same CUSIP number, and shareholders are not required to take any action due to the name change. PHH Mortgage and Liberty Reverse Mortgage will maintain their current branding until the planned rebranding later this year.
Ocwen, soon to be known as Onity, is recognized as one of the largest non-bank mortgage servicers in the country, with a significant presence in the reverse mortgage lending space through its Liberty brand. The company has been serving customers since 1988 and operates from its headquarters in West Palm Beach, Florida, with additional offices in the United States, the U.S. Virgin Islands, India, and the Philippines.
The rebranding initiative was first announced on April 3, 2024, and is aimed at aligning the company's image with its strategic transformation. While the press release includes forward-looking statements about the expected effects of the rebranding, these are subject to risks and uncertainties that could cause actual results to differ.
This article is based on a press release statement from Ocwen Financial Corporation.
InvestingPro Insights
As Ocwen Financial Corporation prepares to rebrand itself as Onity Group Inc., investors and stakeholders might be interested in the company's current financial health and future prospects. According to InvestingPro, Ocwen's net income is expected to grow this year, which could be a positive sign for the company as it embarks on its new identity. This optimism is further supported by two analysts who have revised their earnings expectations upwards for the upcoming period.
InvestingPro data shows that Ocwen has a market capitalization of approximately $194.69 million, with a P/E ratio of 28.71. The adjusted P/E ratio for the last twelve months as of Q1 2024 stands at 39.52, reflecting a premium valuation relative to the company's near-term earnings growth. Interestingly, the company's PEG ratio during the same period is 0.27, which might suggest that the stock is undervalued when considering its earnings growth potential.
Despite challenges such as cash burn and a history of stock price volatility, Ocwen has been profitable over the last twelve months. It is also noteworthy that the company's liquid assets exceed its short-term obligations, providing a cushion for operational needs. Still, it is important to note that Ocwen does not pay a dividend to shareholders, which might be a consideration for income-focused investors.
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