NEW YORK - A recent analysis on Monday highlighted the ownership composition of OneMain Holdings, Inc. (NYSE:OMF), revealing that institutional investors hold a substantial 81% of the company's shares. Institutions like The Vanguard Group, Inc., which is the largest shareholder with a 10% stake, often align their investments with major indices, potentially increasing their interest in stocks such as OneMain Holdings.
The report detailed that the second and third largest shareholders have approximately 9% and 7.4% stakes in the company, respectively. Collectively, the top 12 shareholders wield control over 51% of OneMain Holdings' ownership.
The company is under regular scrutiny from numerous analysts who provide insights into its performance and growth prospects. Despite the high institutional presence, insider ownership stands at less than 1%, with insiders holding shares valued at around $20 million. This low level of insider ownership suggests a strong alignment between the company's board and its shareholders.
In addition to institutional and insider holdings, the general public has an 18% stake in OneMain Holdings. Investors considering this stock are advised to be aware of two warning signs identified in the investment analysis, although specifics of these warnings were not disclosed in the context provided.
InvestingPro Insights
Drawing from InvestingPro's real-time data and tips, OneMain Holdings (OMF) has some interesting financial dynamics worth noting. The company has a high earnings quality, with free cash flow exceeding net income, a strong indicator of financial health, according to InvestingPro Tips. This is coupled with a significant dividend payout to shareholders, which is affirmed by a notable dividend yield of 10.71% as of 2023.
InvestingPro data also reveals that OMF has a market capitalization of $4480M and an adjusted P/E ratio of 6.8 as of Q3 2023, suggesting that it trades at a low earnings multiple. This could potentially make it an attractive investment for value investors.
On the flip side, the company has seen a declining trend in earnings per share and an expected drop in net income this year. Additionally, 12 analysts have revised their earnings downwards for the upcoming period. This, coupled with a revenue growth of -13.41% in the last twelve months as of Q3 2023, indicates potential challenges in the company's financial performance.
InvestingPro offers a wealth of additional tips and data for those interested in a deeper understanding of OneMain Holdings' financial dynamics.
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