5 Value Stocks in Blackstone Group’s Portfolio

2. OneMain Holdings, Inc. (NYSE:OMF)

Number of Hedge Fund Holders: 44

P/E Ratio: 5.20

Based in Evansville, Indiana, OneMain Holdings, Inc. (NYSE:OMF) is a financial services holding company engaged in the consumer finance and insurance businesses. Blackstone Group holds 650,000 OneMain Holdings, Inc. (NYSE:OMF) shares as of Q4 2021, worth $32.5 million. 

On February 2, OneMain Holdings, Inc. (NYSE:OMF) declared a $0.95 per share quarterly dividend, a 35.7% increase from its prior dividend of $0.70. The dividend was paid on February 18. 

OneMain Holdings, Inc. (NYSE:OMF) reported its Q4 results on February 2, posting an EPS of $2.38, exceeding market estimates by $0.03. The $1.02 billion revenue missed estimates by $43.28 million. 

JPMorgan analyst Richard Shane lowered the price target on OneMain Holdings, Inc. (NYSE:OMF) on January 19 to $56 from $64 and kept an Overweight rating on the shares. The analyst reduced target multiples on consumer finance companies by 8%, on average. He views 2022 as a transition year and believes that the probability is shifting from 2023 earnings representing normalized earnings to 2023.

Among the hedge funds tracked by Insider Monkey in the fourth quarter of 2021, 44 funds were bullish on OneMain Holdings, Inc. (NYSE:OMF), up from 41 funds in the preceding quarter. Arrowstreet Capital is the biggest stakeholder of the company, with 2.4 million shares worth $121.3 million.

Here is what Miller Howard Investments has to say about OneMain Holdings, Inc. (NYSE:OMF) in its Q3 2021 investor letter:

“We bought OneMain Holdings (OMF), a non-bank provider of personal loans. OneMain is benefitting from the favorable credit environment and management is exceptionally dedicated to paying dividends, both regular and special.”