Opinions
The Panic-Proof Portfolio (Stockchase Research)
Onity Group. Inc.
ONIT-N
TOP PICK
Jan 16, 2025
$32.780
Stock price when the opinion was issued
Financial Services
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TOP PICK
Stockchase Research Editor: Michael O'Reilly
ONIT provides direct lending for traditional and reverse mortgages to customers in the US, Philippines and India. We like that cash reserves are staying steady as the company retired higher rate notes in exchange for longer term debt. It trades at 22x earnings, under book value and supports a 21% ROE. We recommend setting a stop-loss at $29, looking to achieve $45 -- upside potential of 34%. Yield 0%
(Analysts’ price target is $45.00)
Financial Services
PAST TOP PICK
(A Top Pick Jan 16/25, Down 5.3%)Stockchase Research Editor: Michael O’Reilly
Our PAST TOP PICK with ONIT has triggered its stop at $31. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 6%, when combined with our previous guidance.
Financial Services
We reiterate this non-bank mortgage lender as a TOP PICK. Recently reported earnings showed a 23% increase in loan originations to $8.5 billion. They are adjusting long term debt to reduce their interest payments by $14 million annually. It trades at 21x earnings and under book value. We continue to recommend a stop at $29, looking to achieve $44 -- upside potential of 33%. Yield 0%
(Analysts’ price target is $43.75)