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

Key Points

• Ally Financial Inc. has been given a consensus recommendation of "Moderate Buy" by 17 research firms, with a target price averaging $44.40.
• Institutional investors currently own 88.76% of Ally Financial's shares, indicating strong institutional confidence in the stock.
• Ally Financial recently reported earnings of $0.99 per share, exceeding expectations and contributing to a revenue of $2.08 billion for the quarter.

Ally Financial Inc. (NYSE:ALLY - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the seventeen research firms that are presently covering the firm, Marketbeat.com reports. Eight investment analysts have rated the stock with a hold recommendation and nine have issued a buy recommendation on the company. The average 1-year target price among brokers that have issued ratings on the stock in the last year is $44.40.

Several research firms have weighed in on ALLY. Wells Fargo & Company raised shares of Ally Financial from an "underweight" rating to an "equal weight" rating and lifted their price target for the company from $37.00 to $45.00 in a research note on Tuesday, September 2nd. BTIG Research raised shares of Ally Financial from a "sell" rating to a "neutral" rating in a research note on Monday, July 14th. Citigroup lifted their price target on shares of Ally Financial from $59.00 to $70.00 and gave the company a "buy" rating in a research note on Monday. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Ally Financial in a research note on Monday, July 14th. Finally, Morgan Stanley reiterated an "overweight" rating and set a $47.00 price objective (up from $39.00) on shares of Ally Financial in a report on Thursday, July 10th.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Dimensional Fund Advisors LP grew its holdings in shares of Ally Financial by 1.5% during the first quarter. Dimensional Fund Advisors LP now owns 8,797,505 shares of the financial services provider's stock valued at $320,855,000 after buying an additional 134,113 shares during the last quarter. Wellington Management Group LLP acquired a new position in shares of Ally Financial during the first quarter valued at about $253,881,000. Arrowstreet Capital Limited Partnership grew its holdings in shares of Ally Financial by 39.3% during the second quarter. Arrowstreet Capital Limited Partnership now owns 5,400,560 shares of the financial services provider's stock valued at $210,352,000 after buying an additional 1,523,425 shares during the last quarter. Jacobs Levy Equity Management Inc. grew its holdings in shares of Ally Financial by 10.9% during the first quarter. Jacobs Levy Equity Management Inc. now owns 4,658,877 shares of the financial services provider's stock valued at $169,909,000 after buying an additional 456,698 shares during the last quarter. Finally, First Manhattan CO. LLC. grew its holdings in shares of Ally Financial by 0.8% during the first quarter. First Manhattan CO. LLC. now owns 4,258,760 shares of the financial services provider's stock valued at $155,317,000 after buying an additional 32,121 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 NYSE ALLY opened at $43.07 on Tuesday. Ally Financial has a twelve month low of $29.52 and a twelve month high of $43.12. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 1.30. The company has a market capitalization of $13.26 billion, a PE ratio of 27.97, a P/E/G ratio of 0.33 and a beta of 1.14. The firm has a fifty day simple moving average of $39.59 and a 200 day simple moving average of $36.66.

Ally Financial (NYSE:ALLY - Get Free Report) last posted its quarterly earnings results on Friday, July 18th. The financial services provider reported $0.99 earnings per share for the quarter, beating the consensus estimate of $0.78 by $0.21. Ally Financial had a net margin of 7.64% and a return on equity of 9.48%. The firm had revenue of $2.08 billion during the quarter, compared to the consensus estimate of $2.03 billion. During the same period in the previous year, the firm posted $0.97 earnings per share. The business's revenue was up 3.0% compared to the same quarter last year. On average, sell-side analysts forecast that Ally Financial will post 3.57 EPS for the current year.

Ally Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 15th. Stockholders of record on Friday, August 1st were issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date was Friday, August 1st. Ally Financial's dividend payout ratio (DPR) is currently 77.92%.

Ally Financial Company Profile

Ally Financial Inc, a digital financial-services company, provides various digital financial products and services in the United States, Canada, and Bermuda. The company operates through Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations segments.

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