OneMain Holdings Inc. (NYSE:OMF) stock has reached a remarkable milestone, hitting a 52-week high of $55.16. This peak reflects a significant surge in the company's stock value, marking a substantial turnaround from its previous positions within the year. Investors have shown increased confidence in OneMain Holdings, as evidenced by the impressive 47.05% change in stock price over the past year. The company's performance has evidently resonated well with the market, leading to this new high-water mark in its stock valuation.
In other recent news, OneMain Holdings reported an earnings beat with an adjusted earnings per share (EPS) of $1.26 for the third quarter of 2024, surpassing the consensus estimate of $1.14. This performance was attributed to an improvement in asset yield and robust origination volumes of $3.7 billion. Compass Point responded to these developments by raising the price target for OneMain from $60 to $63, while maintaining a Buy rating on the stock.
The company's net charge-offs (NCOs) for the third quarter were reported at 7.33%, with commercial and industrial 30-89 day delinquencies decreasing to 3.01%. OneMain's management projects an improvement in NCO trends going into 2025, which is anticipated to enhance capital generation.
Furthermore, OneMain's total revenue rose to $1.5 billion, an 8% increase from the same quarter the previous year. Loan originations also saw a 13% rise, contributing to an 11% year-over-year growth in receivables. In addition, the company successfully issued $750 million in unsecured social bonds and made progress in integrating its recent acquisition, Foursight. These recent developments underline OneMain's commitment to maintaining high credit quality and operational efficiency.
InvestingPro Insights
OneMain Holdings Inc.'s (OMF) recent achievement of a 52-week high is further supported by real-time data from InvestingPro. The stock's strong performance is reflected in its impressive 56.06% total return over the past year, outpacing the 47.05% change mentioned in the article. This surge has brought OMF to trade at 99.04% of its 52-week high, underscoring the stock's momentum.
InvestingPro Tips highlight that OMF pays a significant dividend to shareholders, with a current dividend yield of 7.64%. This attractive yield, combined with a dividend growth of 4.0% over the last twelve months, may be contributing to investor interest in the stock.
The company's P/E ratio of 11.22 suggests that the stock may still be reasonably valued despite its recent gains. Additionally, OneMain Holdings has been profitable over the last twelve months, with a basic EPS from continuing operations of $4.58.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for OMF, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.