OneMain Holdings Inc. (OMF) Shares: Are They Risky Or Cheap?

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MDVL Stock
MDVL Stock

OneMain Holdings Inc. (NYSE:OMF) finished Wednesday with a subtraction of -$1.13 to close at $32.70, a downside of -3.34 percent. An average of 1,820,420 shares of common stock have been traded in the last five days. There was a fall of -$1.99 in the past week, and it reached a new high 8 times over the past 12 months. The last 20 days have seen an average of 1,282,625 shares traded, while the 50-day average volume stands at 1,272,466.

OMF stock has decreased by -10.21% in the last month. The company shares reached their 1-month lowest point of $32.66 on 09/21/22. With the stock rallying to its 52-week high on 01/13/22, shares of the company touched a low of $33.21 and a high of $60.38 in 52 weeks. It has reached a new high 9 times so far this year and lost -34.65% or -$17.34 in price. In spite of this, the price is down -45.84% from the 52-week high.


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Valuation Metrics

OneMain Holdings Inc. (OMF) has a trailing price-to-earnings (P/E) ratio of 3.97. The stock’s beta is 1.61. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.81, the price-to-book (PB) ratio at 1.34, and the price-to-cash flow ratio at 2.93.

The company has a payout ratio of 82.40%. The company’s most recent quarterly dividend payment was $0.95 a share, without any change from last year. Its latest increase dividend $0.25 reported on Wednesday February 2 2022.

Financial Health

Further, the company has a long term debt to equity ratio of 5.91 and a total debt to equity ratio of 5.91 for the quarter ending June 29. Its gross profit as reported stood at $3.43 billion compared to revenue of $4.36 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, OneMain Holdings Inc.’s return on assets was 4.80%.

Earnings Surprise

For the three-month period that ended June 29, OneMain Holdings Inc. had $17.92 billion in total debt. The analyst consensus anticipated OneMain Holdings Inc.’s latest quarter earnings to come in at $1.97 per share, but it turned out to be $1.87, a -5.10% surprise. At the end of the quarter ending June 29, OneMain Holdings Inc.’s stock balance sheet showed total debt was $17.92 billion. Shareholders own equity worth $123.67 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at OneMain Holdings Inc. (OMF) price momentum. RSI 9-day as of the close on 21 September was 30.56%, suggesting the stock is Neutral, with historical volatility in this time frame at 47.39%.

As of today, OMF’s price is $34.46 -5.74% or -$1.99 from its 5-day moving average. OMF is currently trading -11.17% lower than its 20-day SMA and -29.81% lower than its 100-day SMA. However, the stock’s current price level is -15.85% below the SMA50 and -35.63% below the SMA200.

The stochastic %K and %D were 13.55% and 22.20%, respectively, and the average true range (ATR) was 1.40. With the 14-day stochastic at 0.66% and the average true range at 1.36, the RSI (14) stands at 35.01%. The stock has reached -1.43 on the 9-day MACD Oscillator while the 14-day reading was at -1.36.

Analyst Ratings

Wells Fargo downgraded OneMain Holdings Inc. (NYSE: OMF) to a an Equal weight rating in its most recent analyst report. Previously, the stock was rated as an Overweight. The consensus rating for OneMain Holdings Inc. (OMF) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell OMF, while 3 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 11 others rate it as a “buy”.

What is OMF’s price target for the next 12 months?

Analysts predict a range of price targets between $40.00 and $67.00, with a median target of $52.00. Taking a look at these predictions, the average price target given by analysts for OneMain Holdings Inc. (OMF) stock is $51.93.

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