Ally Financial Inc. Plans Quarterly Dividend of $0.30 (NYSE:ALLY)

Key Points

• Ally Financial Inc. has declared a quarterly dividend of $0.30 per share, with a yield of 3.1%, to be paid on November 14th to shareholders of record as of October 31st.
• The company has a dividend payout ratio of 22.1%, indicating that it can sufficiently cover its annual dividend, which is expected to remain stable with analysts predicting earnings of $5.47 per share next year.
• Ally Financial's stock is currently rated as a "Moderate Buy" by analysts, with a price target averaging $45.14, despite recent target adjustments from different investment firms.

Ally Financial Inc. (NYSE:ALLY - Get Free Report) declared a quarterly dividend on Tuesday, October 7th. Shareholders of record on Friday, October 31st will be paid a dividend of 0.30 per share by the financial services provider on Friday, November 14th. This represents a c) annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Friday, October 31st.

Ally Financial has a dividend payout ratio of 22.1% meaning its dividend is sufficiently covered by earnings. Research analysts expect Ally Financial to earn $5.47 per share next year, which means the company should continue to be able to cover its $1.20 annual dividend with an expected future payout ratio of 21.9%.

Ally Financial Price Performance

Shares of Ally Financial stock opened at $39.10 on Thursday. Ally Financial has a 52 week low of $29.52 and a 52 week high of $44.83. The stock's 50-day simple moving average is $40.18 and its 200-day simple moving average is $37.39. 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 $12.04 billion, a price-to-earnings ratio of 25.39, a PEG ratio of 0.31 and a beta of 1.18.

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

Analyst Upgrades and Downgrades

A number of research analysts have commented on ALLY shares. Keefe, Bruyette & Woods cut their target price on shares of Ally Financial from $56.00 to $51.00 and set an "outperform" rating on the stock in a research report on Wednesday, October 1st. Citigroup boosted their price target on Ally Financial from $59.00 to $70.00 and gave the company a "buy" rating in a report on Monday, September 15th. Morgan Stanley upped their target price on Ally Financial from $47.00 to $52.00 and gave the stock an "overweight" rating in a research note on Monday, September 29th. Weiss Ratings restated a "hold (c)" rating on shares of Ally Financial in a research report on Saturday, September 27th. Finally, BTIG Research raised shares of Ally Financial from a "sell" rating to a "neutral" rating in a research note on Monday, July 14th. Nine analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $45.14.

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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