We wouldn't blame OneMain Holdings, Inc. (NYSE:OMF) shareholders if they were a little worried about the fact that Douglas Shulman, the Chairman recently netted about US$1.2m selling shares at an average price of US$47.49. That's a big disposal, and it decreased their holding size by 11%, which is notable but not too bad.
We've discovered 3 warning signs about OneMain Holdings. View them for free.The Last 12 Months Of Insider Transactions At OneMain Holdings
In fact, the recent sale by Douglas Shulman was the biggest sale of OneMain Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$48.92, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 11% of Douglas Shulman's holding.
Insiders in OneMain Holdings didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for OneMain Holdings
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Does OneMain Holdings Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.4% of OneMain Holdings shares, worth about US$25m. 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?
An insider hasn't bought OneMain Holdings stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with OneMain Holdings (including 1 which shouldn't be ignored).
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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 of direct interests only, but not derivative transactions or indirect interests.
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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.