- United States
- Consumer Finance
Insiders who bought in the last 12 months lose an additional US$31k as OneMain Holdings, Inc. (NYSE:OMF) drops to US$4.3b
Insiders who acquired US$231k worth of OneMain Holdings, Inc.'s (NYSE:OMF) stock at an average price of US$40.97 in the past 12 months may be dismayed by the recent 7.2% price decline. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$201k, which is not what they expected.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for OneMain Holdings
OneMain Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chairman Douglas Shulman bought US$102k worth of shares at a price of US$40.83 per share. That means that an insider was happy to buy shares at above the current price of US$35.49. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Douglas Shulman was the only individual insider to buy during the last year.
Douglas Shulman bought a total of 5.65k shares over the year at an average price of US$40.97. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of OneMain Holdings
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.4% of OneMain Holdings shares, worth about US$18m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At OneMain Holdings Tell Us?
It doesn't really mean much that no insider has traded OneMain Holdings shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in OneMain Holdings and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 2 warning signs we've spotted with OneMain Holdings (including 1 which is potentially serious).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses.
Undervalued average dividend payer.