Redditors are Buying AMD and 4 Other Stocks on the Dip

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

Number of Hedge Fund Holders: 28 

Percentage Decrease in Share Price Over Past Six Months: 22%     

OneMain Holdings, Inc. (NYSE:OMF), a financial service holding company, engages in the consumer finance and insurance businesses. On July 27, the company posted earnings for the second quarter of 2022, reporting earnings per share of $1.87, missing market estimates by $0.10. The revenue over the period was $1 billion, up over 2% compared to the revenue over the same period last year but missing analyst estimates by $30 million. The firm also declared a quarterly dividend of $0.95 on the same day, in line with previous. The forward yield was an impressive 9.56%. 

On August 15, RBC Capital analyst Kenneth Lee maintained an Outperform rating on OneMain Holdings, Inc. (NYSE:OMF) stock and lowered the firm’s price target to $51 from $62, noting that the downside for the firm was manageable as it had capital generation potential.

At the end of the second quarter of 2022, 28 hedge funds in the database of Insider Monkey held stakes worth $621.5 million in OneMain Holdings, Inc. (NYSE:OMF), compared to 37 in the previous quarter worth $866 million.

In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and OneMain Holdings, Inc. (NYSE:OMF) was one of them. Here is what the fund said:

“Similar to the energy sector, the financials sector is also trading at very depressed multiples relative to the market. While the sector’s strong fundamentals received some recognition in 2021, it was rewarded with substantially lower valuations than it should have had. Despite earnings growing over 30% and exceeding the overall market’s, financial stock multiples stayed flat and are currently selling at a discount of roughly 9x forward earnings. (…read more)