
ONIT Stock Forecast & Price Target
ONIT Analyst Ratings
Bulls say
Onity Group Inc. is poised for a positive trajectory, underscored by expectations of multiple expansion and book value growth, which may be further enhanced by the anticipated reversal of the DTA valuation allowance, valued at $22 per share by year-end. Notably, the company has demonstrated strong performance in the consumer direct segment, with volumes rising 29% sequentially to $384 million, while maintaining stable margins at 321 basis points, up from 319 basis points. Additionally, funded volume saw a significant increase of 34% quarter-over-quarter, reaching $9.4 billion, highlighting robust operational growth.
Bears say
Onity Group has reported a slight decline in adjusted pre-tax income from the origination segment, decreasing from $10 million to $9 million, indicating potential challenges in sustaining profitability. Furthermore, the reverse mortgage segment is experiencing a 6% quarter-over-quarter decrease in volume, alongside a drop in margins, which raises concerns about the overall health of this service line. Projections for the next three fiscal years reflect a declining trend in estimates, suggesting decreasing financial performance, with adjusted return on equity stagnating around 16% to 17%.
This aggregate rating is based on analysts' research of Onity Group Inc and is not a guaranteed prediction by Public.com or investment advice.
ONIT Analyst Forecast & Price Prediction
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