Shares of Onity Group (NYSE: ONIT) received an upgrade from a hold rating to a buy rating by Wall Street Zen in a research report published on November 10, 2023. This change reflects a positive outlook on the company, which has recently attracted attention from multiple equities research analysts.
In the same vein, Keefe, Bruyette & Woods increased their price target for Onity Group from $55.00 to $60.00, assigning an “outperform” rating. This adjustment is part of a broader trend, as analysts reassess their positions on the stock. Conversely, Zacks Research downgraded Onity Group from a “hold” to a “strong sell” rating on August 21, 2023, indicating mixed sentiments within the market.
Analysts’ ratings for Onity Group present a varied picture. Currently, three analysts have issued a buy rating, one has maintained a hold rating, and one has assigned a sell rating. According to data from MarketBeat, the stock has an average rating of “hold” with a mean price target of $51.67.
Financial Performance and Analyst Forecasts
Onity Group recently reported its earnings results for the third quarter on November 6, 2023. The company achieved earnings per share (EPS) of $3.44, significantly surpassing the consensus estimate of $1.92 by $1.52. Despite this positive performance, the company reported a net margin of 3.74% and a return on equity of 18.99%, which suggests areas for improvement.
During the quarter, Onity Group generated revenue of $62.30 million, falling short of the consensus estimate of $257.77 million. Analysts anticipate that the company will post an EPS of 10.51 for the current financial year, indicating cautious optimism about future performance.
Institutional Investor Activity
Recent changes among institutional investors reflect a growing interest in Onity Group’s stock. Cullen Frost Bankers Inc. increased its position by 169.9% during the second quarter, acquiring a total of 988 shares valued at approximately $38,000. Additionally, AlphaQuest LLC purchased a new stake in Onity Group valued at $77,000 during the third quarter.
Other notable investments include BNP Paribas Financial Markets, which boosted its holdings by 367.2% in the same quarter, now owning 3,163 shares worth around $121,000. Overall, institutional investors currently hold 70.16% of Onity Group’s stock, indicating strong confidence in the company’s potential.
Onity Group Inc. operates in the financial services sector, specializing in originating and servicing mortgage loans across the United States, the United States Virgin Islands, India, and the Philippines. The company is divided into two segments: Servicing and Originations. It offers a range of services, including commercial forward mortgage loan servicing, reverse mortgage servicing, and asset management services.
As Onity Group continues to navigate the complexities of the financial landscape, analysts and investors alike will be watching closely to see how the company’s strategies unfold in the coming quarters.
