
ONIT Stock Forecast & Price Target
ONIT Analyst Ratings
Bulls say
Onity Group Inc. demonstrates strong growth potential, highlighted by a 34% quarter-over-quarter increase in funded volume, reaching $9.4 billion, which reflects enhanced operational performance. Additionally, the company's consumer direct segment reported a 29% sequential volume increase to $384 million, while maintaining stable margins at approximately 321 basis points. The anticipated reversal of the deferred tax asset (DTA) valuation allowance, projected to add $22 per share, further supports a positive outlook for Onity Group's stock through potential book value growth and multiple expansion.
Bears say
Onity Group Inc. has reported a slight decline in adjusted pre-tax income for its origination segment, falling to $9 million from $10 million quarter-over-quarter, indicating potential challenges in sustaining profitability amid competitive market pressures. Additionally, the company has experienced a 6% decrease in reverse mortgage volume, accompanied by declining profit margins within the reverse segment, which dropped from 392 basis points to 367 basis points in the most recent quarter. Furthermore, forecasts for the upcoming fiscal years show a downward trend in estimated earnings, with pre-tax adjusted return on equity anticipated to stabilize only modestly around 17%, raising concerns about long-term growth prospects.
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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