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

Key Points

• Analysts give Ally an average recommendation of "Moderate Buy" from 17 firms (13 buys, 4 holds) with an average 12-month price target of $51.67.
• Insiders signaled confidence—CEO Michael Rhodes bought 23,800 shares and CFO Russell Hutchinson bought 11,566 shares—while the Board authorized a $2.0 billion share repurchase (up to ~15.3% of shares).
• Ally beat Q4 estimates with EPS $1.09 vs. $1.01 expected and $2.17B revenue, and it pays a quarterly dividend of $0.30 (annualized yield ~3.0%).

Ally Financial Inc. (NYSE:ALLY - Get Free Report) has been given an average recommendation of "Moderate Buy" by the seventeen ratings firms that are currently covering the stock, Marketbeat.com reports. Four analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company. The average 12 month price target among brokerages that have issued ratings on the stock in the last year is $51.6667.

ALLY has been the subject of several analyst reports. Evercore cut their price target on Ally Financial from $53.00 to $51.00 and set an "outperform" rating for the company in a research note on Thursday, February 5th. Weiss Ratings cut shares of Ally Financial from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday, February 26th. Morgan Stanley set a $53.00 price objective on shares of Ally Financial and gave the stock an "overweight" rating in a research report on Tuesday, December 16th. TD Cowen restated a "buy" rating on shares of Ally Financial in a research note on Thursday, January 8th. Finally, The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $55.00 target price on shares of Ally Financial in a report on Tuesday, January 6th.

Insider Activity at Ally Financial

In other Ally Financial news, CEO Michael George Rhodes acquired 23,800 shares of the company's stock in a transaction that occurred on Friday, January 23rd. The shares were purchased at an average price of $41.68 per share, with a total value of $991,984.00. Following the completion of the acquisition, the chief executive officer directly owned 49,434 shares of the company's stock, valued at approximately $2,060,409.12. The trade was a 92.85% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CFO Russell E. Hutchinson acquired 11,566 shares of the business's stock in a transaction on Tuesday, January 27th. The stock was acquired at an average price of $43.17 per share, with a total value of $499,304.22. Following the transaction, the chief financial officer directly owned 225,336 shares of the company's stock, valued at $9,727,755.12. This represents a 5.41% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 0.67% of the company's stock.

Institutional Investors Weigh In On Ally Financial

Several institutional investors have recently made changes to their positions in ALLY. Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of Ally Financial in the fourth quarter valued at about $29,000. Mather Group LLC. purchased a new stake in Ally Financial during the third quarter worth about $31,000. Fideuram Asset Management Ireland dac acquired a new position in Ally Financial during the fourth quarter worth about $35,000. Safe Harbor Fiduciary LLC acquired a new position in Ally Financial during the fourth quarter worth about $37,000. Finally, Harvest Fund Management Co. Ltd purchased a new position in Ally Financial in the fourth quarter valued at about $38,000. 88.76% of the stock is currently owned by hedge funds and other institutional investors.

Ally Financial Stock Performance

Shares of ALLY stock opened at $39.83 on Friday. The stock has a market capitalization of $12.26 billion, a PE ratio of 16.95, a price-to-earnings-growth ratio of 0.20 and a beta of 1.14. Ally Financial has a 52-week low of $29.52 and a 52-week high of $47.27. The stock's 50-day moving average price is $40.13 and its 200 day moving average price is $41.31. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 1.30.

Ally Financial (NYSE:ALLY - Get Free Report) last posted its quarterly earnings data on Wednesday, January 21st. The financial services provider reported $1.09 earnings per share for the quarter, topping analysts' consensus estimates of $1.01 by $0.08. Ally Financial had a return on equity of 10.40% and a net margin of 10.77%.The company had revenue of $2.17 billion during the quarter, compared to analysts' expectations of $2.15 billion. During the same period last year, the firm earned $0.78 EPS. The firm's revenue for the quarter was up 4.8% on a year-over-year basis. As a group, equities research analysts forecast that Ally Financial will post 3.57 EPS for the current year.

Ally Financial announced that its Board of Directors has authorized a share buyback plan on Wednesday, December 10th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to reacquire up to 15.3% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's management believes its shares are undervalued.

Ally Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, February 17th. Investors of record on Monday, February 2nd were given a $0.30 dividend. The ex-dividend date was Monday, February 2nd. This represents a $1.20 dividend on an annualized basis and a yield of 3.0%. Ally Financial's dividend payout ratio (DPR) is presently 51.06%.

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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