OneMain Holdings Executive Sells Over $225K in Shares

Michael A. Hedlund, Senior Vice President and Group Controller of OneMain Holdings, Inc., recently executed a sale of 4,800 shares of the company’s common stock, according to a filing with the U.S. Securities and Exchange Commission. These transactions took place on September 16 and 17, with sale prices ranging from $46.00 to $48.00 per share, amounting to a total of $225,600.

The sales were made under a Rule 10b5-1 trading plan, established by Hedlund on June 11, 2024. This type of plan allows company insiders to schedule sales of a specified number of shares at set times, enabling them to avoid allegations of insider trading.

After this transaction, Hedlund retains a direct ownership of 23,347 shares in OneMain Holdings. The company, which focuses on personal credit services, operates under the ticker OMF and is incorporated in Delaware.

Insider sales are often scrutinized by investors as they can indicate an executive’s sentiment regarding the company’s valuation or future potential. However, transactions conducted under a 10b5-1 plan, like those by Hedlund, are prearranged and may not necessarily reflect an insider’s current perspective on the company’s future.

The details of the stock sales were disclosed in a Form 4 filing signed by attorney-in-fact Lily Fu Claffee on behalf of Michael A. Hedlund on September 18, 2024.

In related news, OneMain Financial reported a 7% year-over-year increase in total revenue for Q2 2024, reaching $1.4 billion. The company’s stricter underwriting standards have led to improved credit metrics, and it anticipates a rise in origination volumes later in the year. OneMain also successfully raised $1.9 billion through debt issuances, reinforcing its commitment to a strong dividend.

BTIG has maintained a Neutral rating on OneMain based on the company’s August data, which revealed steady net losses. The firm’s earnings per share (EPS) forecast for OneMain in the third quarter is $1.16. While there was a slight rise in delinquencies for August, it was slower compared to July.

Additionally, OneMain announced the abrupt resignation of Aneek S. Mamik from its Board of Directors, a noteworthy development considering Mamik’s vital role during the acquisition of a significant stake in the company by the Consortium of Värde and Apollo Global Management affiliates.

These changes signal a period of transformation and potential growth for OneMain, particularly in its credit card and auto finance divisions. Analyst Jenny Osterhout expressed optimism regarding a reduction in losses moving forward, suggesting positive growth prospects.

Overall, the developments at OneMain Holdings indicate a combination of strategic adjustments and growth opportunities within the company, which investors may want to monitor closely.