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

Key Points

• Ally Financial has a consensus analyst rating of “Moderate Buy”, with 14 buy ratings and 2 hold ratings from 16 firms. The average 12-month price target is about $53.79.
• The company recently reported better-than-expected quarterly earnings of $1.11 per share, topping estimates by $0.18, while revenue rose 36.4% year over year to $2.18 billion.
• Ally also paid a quarterly dividend of $0.30 per share, equal to an annualized yield of 2.6%, while insider and institutional activity showed mixed trading with insiders selling shares and institutions continuing to hold a large majority of the stock.

Ally Financial Inc. (NYSE:ALLY - Get Free Report) has received an average rating of "Moderate Buy" from the sixteen ratings firms that are currently covering the stock, MarketBeat.com reports. Two 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 target among analysts that have covered the stock in the last year is $53.7857.

ALLY has been the topic of a number of research analyst reports. Wall Street Zen cut Ally Financial from a "buy" rating to a "hold" rating in a report on Monday, June 8th. Truist Financial set a $54.00 price objective on shares of Ally Financial in a report on Tuesday, April 21st. Barclays lifted their price objective on shares of Ally Financial from $54.00 to $56.00 and gave the company an "equal weight" rating in a research report on Monday, April 20th. Citigroup dropped their target price on shares of Ally Financial from $70.00 to $58.00 and set a "buy" rating for the company in a research report on Tuesday, June 23rd. Finally, Morgan Stanley raised their target price on shares of Ally Financial from $53.00 to $55.00 and gave the company an "overweight" rating in a research note on Monday, April 20th.

Ally Financial Price Performance

NYSE:ALLY opened at $45.60 on Monday. The company has a quick ratio of 0.93, a current ratio of 0.93 and a debt-to-equity ratio of 1.31. The business's 50-day simple moving average is $43.92 and its two-hundred day simple moving average is $42.65. The stock has a market cap of $13.98 billion, a PE ratio of 11.12, a P/E/G ratio of 0.26 and a beta of 1.09. Ally Financial has a 52 week low of $35.92 and a 52 week high of $47.29.

Ally Financial (NYSE:ALLY - Get Free Report) last released its quarterly earnings data on Friday, April 17th. The financial services provider reported $1.11 earnings per share for the quarter, topping analysts' consensus estimates of $0.93 by $0.18. Ally Financial had a return on equity of 11.41% and a net margin of 16.47%.The firm had revenue of $2.18 billion during the quarter, compared to analyst estimates of $2.14 billion. During the same quarter in the prior year, the company posted $0.58 earnings per share. The business's quarterly revenue was up 36.4% compared to the same quarter last year. As a group, analysts forecast that Ally Financial will post 5.33 EPS for the current fiscal year.

Ally Financial Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were paid a $0.30 dividend. The ex-dividend date was Friday, May 1st. This represents a $1.20 annualized dividend and a yield of 2.6%. Ally Financial's payout ratio is presently 29.27%.

Insider Activity

In other news, insider Douglas R. Timmerman sold 39,675 shares of the firm's stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $45.17, for a total transaction of $1,792,119.75. Following the completion of the transaction, the insider owned 477,627 shares in the company, valued at $21,574,411.59. This trade represents a 7.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Stephanie N. Richard sold 5,000 shares of Ally Financial stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $42.14, for a total value 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 SEC filing for this sale provides additional information. 0.46% of the stock is owned by corporate insiders.

Institutional Trading of Ally Financial

Large investors have recently added to or reduced their stakes in the company. Prana Capital Management LP increased its position in Ally Financial by 177.3% in the third quarter. Prana Capital Management LP now owns 178,762 shares of the financial services provider's stock worth $7,007,000 after purchasing an additional 114,305 shares during the last quarter. Intech Investment Management LLC bought a new position in Ally Financial during the fourth quarter valued at $3,926,000. Danica Pension Livsforsikringsaktieselskab bought a new position in Ally Financial during the third quarter valued at $45,733,000. Algert Global LLC grew its stake in shares of Ally Financial by 62.0% in the 3rd quarter. Algert Global LLC now owns 461,846 shares of the financial services provider's stock worth $18,104,000 after buying an additional 176,720 shares in the last quarter. Finally, Daytona Street Capital LLC purchased a new position in shares of Ally Financial in the 4th quarter worth $3,381,000. Institutional investors own 88.76% of the company's stock.

Ally Financial Company Profile

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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