Ally Financial Inc. (NYSE:ALLY) Receives $44.40 Consensus Target Price from Analysts

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 received an average rating of "Moderate Buy" from the seventeen analysts that are presently covering the company, Marketbeat Ratings reports. Eight research analysts have rated the stock with a hold recommendation and nine have assigned a buy recommendation to the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $44.40.

Several equities research analysts have recently commented on ALLY shares. JPMorgan Chase & Co. boosted their target price on shares of Ally Financial from $44.00 to $45.00 and gave the company an "overweight" rating in a research note on Monday, July 21st. Wells Fargo & Company raised Ally Financial from an "underweight" rating to an "equal weight" rating and raised their price target for the company from $37.00 to $45.00 in a report on Tuesday, September 2nd. Citigroup lifted their target price on Ally Financial from $59.00 to $70.00 and gave the stock a "buy" rating in a report on Monday, September 15th. BTIG Research upgraded Ally Financial from a "sell" rating to a "neutral" rating in a research report on Monday, July 14th. Finally, Royal Bank Of Canada restated an "outperform" rating on shares of Ally Financial in a report on Monday, July 14th.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Wellington Management Group LLP purchased a new stake in Ally Financial during the 1st quarter worth about $253,881,000. Millennium Management LLC increased its position in shares of Ally Financial by 234.7% during the 1st quarter. Millennium Management LLC now owns 3,752,066 shares of the financial services provider's stock valued at $136,838,000 after purchasing an additional 2,630,981 shares during the last quarter. Norges Bank bought a new position in Ally Financial during the 2nd quarter worth approximately $95,897,000. Arrowstreet Capital Limited Partnership lifted its holdings in Ally Financial by 39.3% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 5,400,560 shares of the financial services provider's stock worth $210,352,000 after buying an additional 1,523,425 shares during the period. Finally, Marshall Wace LLP purchased a new stake in Ally Financial in the 2nd quarter worth approximately $51,661,000. Hedge funds and other institutional investors own 88.76% of the company's stock.

Ally Financial Stock Down 0.8%

ALLY traded down $0.35 during midday trading on Tuesday, hitting $44.23. 5,339,956 shares of the company's stock traded hands, compared to its average volume of 2,620,256. The company has a market cap of $13.61 billion, a PE ratio of 28.72, a price-to-earnings-growth ratio of 0.35 and a beta of 1.14. The stock's fifty day simple moving average is $39.88 and its 200-day simple moving average is $36.88. The company has a debt-to-equity ratio of 1.30, a current ratio of 0.92 and a quick ratio of 0.92. Ally Financial has a one year low of $29.52 and a one year high of $44.83.

Ally Financial (NYSE:ALLY - Get Free Report) last issued its quarterly earnings data 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. The firm had revenue of $2.08 billion for the quarter, compared to analyst estimates of $2.03 billion. Ally Financial had a net margin of 7.64% and a return on equity of 9.48%. The company's revenue for the quarter was up 3.0% on a year-over-year basis. During the same quarter last year, the firm earned $0.97 earnings per share. As a group, equities analysts anticipate that Ally Financial will post 3.57 earnings per share for the current fiscal year.

Ally Financial Announces Dividend

The company 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. The ex-dividend date was Friday, August 1st. This represents a $1.20 annualized dividend and a dividend yield of 2.7%. Ally Financial's payout ratio 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.