One OneMain Holdings, Inc. (NYSE:OMF) insider upped their stake by 9.3% in the previous year

By
Simply Wall St
Published
May 07, 2022
NYSE:OMF
Source: Shutterstock

From what we can see, insiders were net buyers in OneMain Holdings, Inc.'s (NYSE:OMF ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for OneMain Holdings

The Last 12 Months Of Insider Transactions At OneMain Holdings

The Chairman Douglas Shulman made the biggest insider purchase in the last 12 months. That single transaction was for US$500k worth of shares at a price of US$58.50 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$44.78). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Douglas Shulman.

Douglas Shulman bought a total of 13.83k shares over the year at an average price of US$55.62. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NYSE:OMF Insider Trading Volume May 7th 2022

OneMain Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does OneMain Holdings Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that OneMain Holdings insiders own 0.3% of the company, worth about US$15m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The OneMain Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of OneMain Holdings we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing OneMain Holdings. To that end, you should learn about the 3 warning signs we've spotted with OneMain Holdings (including 2 which don't sit too well with us).

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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