Ally Financial Inc. (NYSE:ALLY) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Ally Financial has an average analyst rating of “Moderate Buy”, with 14 of 16 brokerages recommending the stock and an average 12-month price target of about $54.14.
• The company reported better-than-expected quarterly results, posting EPS of $1.11 versus the $0.93 estimate and revenue of $2.18 billion, while revenue rose 36.4% year over year.
• Recent activity included insider selling by two executives and a quarterly dividend of $0.30 per share, which works out to an annualized yield of 2.8%.

Shares of Ally Financial Inc. (NYSE:ALLY - Get Free Report) have been given an average rating of "Moderate Buy" by the sixteen brokerages that are covering the firm, Marketbeat reports. Two equities research analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company. The average 12 month price objective among brokers that have issued ratings on the stock in the last year is $54.1429.

A number of brokerages have commented on ALLY. Wall Street Zen downgraded shares of Ally Financial from a "buy" rating to a "hold" rating in a research note on Saturday. Evercore reaffirmed an "outperform" rating and set a $54.00 target price on shares of Ally Financial in a research note on Tuesday, April 21st. Weiss Ratings raised shares of Ally Financial from a "hold (c+)" rating to a "buy (b)" rating in a research note on Wednesday, May 6th. Bank of America lifted their target price on shares of Ally Financial from $51.00 to $52.00 and gave the stock a "buy" rating in a research note on Friday, April 10th. Finally, The Goldman Sachs Group lifted their target price on shares of Ally Financial from $50.00 to $56.00 and gave the stock a "buy" rating in a research note on Monday, April 20th.

Insider Transactions at Ally Financial

In other Ally Financial news, insider Stephanie N. Richard sold 5,000 shares of Ally Financial stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $42.14, for a total transaction of $210,700.00. Following the completion of the sale, the insider directly owned 93,927 shares in the company, valued at $3,958,083.78. This trade represents a 5.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Douglas R. Timmerman sold 39,675 shares of Ally Financial stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $45.17, for a total transaction of $1,792,119.75. Following the sale, the insider owned 477,627 shares of the company's stock, valued at approximately $21,574,411.59. This represents a 7.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.46% of the stock is owned by company insiders.

Institutional Investors Weigh In On Ally Financial

Institutional investors have recently made changes to their positions in the stock. Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of Ally Financial during the fourth quarter valued at about $29,000. Fideuram Asset Management Ireland dac acquired a new stake in shares of Ally Financial during the fourth quarter valued at about $35,000. Safe Harbor Fiduciary LLC acquired a new stake in shares of Ally Financial during the fourth quarter valued at about $37,000. Harvest Fund Management Co. Ltd acquired a new stake in shares of Ally Financial during the fourth quarter valued at about $38,000. Finally, CIBC Private Wealth Group LLC increased its position in shares of Ally Financial by 805.1% during the fourth quarter. CIBC Private Wealth Group LLC now owns 896 shares of the financial services provider's stock valued at $41,000 after acquiring an additional 797 shares during the last quarter. 88.76% of the stock is currently owned by institutional investors and hedge funds.

Ally Financial Price Performance

Shares of ALLY stock opened at $42.39 on Friday. The company has a debt-to-equity ratio of 1.31, a current ratio of 0.93 and a quick ratio of 0.93. The firm's 50-day moving average is $41.46 and its two-hundred day moving average is $41.90. Ally Financial has a 12 month low of $32.50 and a 12 month high of $47.27. The company has a market capitalization of $12.99 billion, a PE ratio of 10.34, a price-to-earnings-growth ratio of 0.26 and a beta of 1.12.

Ally Financial (NYSE:ALLY - Get Free Report) last issued its earnings results on Friday, April 17th. The financial services provider reported $1.11 EPS for the quarter, topping analysts' consensus estimates of $0.93 by $0.18. Ally Financial had a net margin of 16.47% and a return on equity of 11.41%. The company had revenue of $2.18 billion for the quarter, compared to the consensus estimate of $2.14 billion. During the same period in the previous year, the firm earned $0.58 earnings per share. Ally Financial's quarterly revenue was up 36.4% compared to the same quarter last year. Analysts predict that Ally Financial will post 5.3 earnings per share for the current year.

Ally Financial Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were given a dividend of $0.30 per share. The ex-dividend date was Friday, May 1st. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.8%. Ally Financial's dividend payout ratio (DPR) is currently 29.27%.

About Ally Financial

Ally Financial Inc is a leading digital financial services company headquartered in Detroit, Michigan. The company offers a comprehensive suite of banking, lending, and insurance products designed for retail and commercial customers. Through its online-only platform, Ally Bank provides checking and savings accounts, certificates of deposit, money market accounts, and home mortgages, emphasizing competitive rates and user-friendly mobile and web experiences.

In addition to its banking operations, Ally Financial is a major player in automotive financing and leasing.

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