Ally Financial (NYSE:ALLY) Given New $46.00 Price Target at JPMorgan Chase & Co.

Key Points

• JPMorgan cut its price target for Ally from $48 to $46 but kept an overweight rating, signaling roughly a 10% upside from the current share price.
• Ally beat Q4 EPS estimates ($1.09 vs. $1.01 consensus) and its board approved a $2.0 billion share buyback that could repurchase up to 15.3% of outstanding stock.
• Insiders including the CFO and CEO recently bought shares, institutional ownership is high (about 88.8%), and analysts’ consensus is a Moderate Buy with an average price target of $53.38.

Ally Financial (NYSE:ALLY - Get Free Report) had its target price dropped by equities research analysts at JPMorgan Chase & Co. from $48.00 to $46.00 in a research report issued on Thursday,Benzinga reports. The firm currently has an "overweight" rating on the financial services provider's stock. JPMorgan Chase & Co.'s price objective points to a potential upside of 10.08% from the company's current price.

A number of other analysts have also issued reports on the company. Wells Fargo & Company raised Ally Financial from a "hold" rating to an "overweight" rating in a research note on Wednesday, December 17th. UBS Group set a $48.00 price target on Ally Financial in a research note on Monday, January 12th. Morgan Stanley set a $53.00 price objective on Ally Financial and gave the stock an "overweight" rating in a research note on Tuesday, December 16th. Truist Financial lowered their price objective on Ally Financial from $51.00 to $50.00 and set a "buy" rating on the stock in a research note on Monday, January 26th. Finally, The Goldman Sachs Group reissued a "neutral" rating and set a $55.00 price objective on shares of Ally Financial in a research note on Tuesday, January 6th. Eleven analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Ally Financial currently has an average rating of "Moderate Buy" and a consensus price target of $53.38.

Ally Financial Price Performance

Shares of NYSE:ALLY traded up $0.08 during trading on Thursday, reaching $41.79. The stock had a trading volume of 967,991 shares, compared to its average volume of 3,797,430. The company has a debt-to-equity ratio of 1.30, a quick ratio of 0.92 and a current ratio of 0.92. The business has a fifty day moving average price of $40.03 and a 200-day moving average price of $41.22. The stock has a market cap of $12.87 billion, a PE ratio of 17.78, a PEG ratio of 0.20 and a beta of 1.14. Ally Financial has a 1-year low of $29.91 and a 1-year high of $47.27.

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

Ally Financial announced that its board has approved 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 buy up to 15.3% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Chung Wu Investment Group LLC boosted its position in shares of Ally Financial by 224.1% in the 3rd quarter. Chung Wu Investment Group LLC now owns 38,890 shares of the financial services provider's stock valued at $1,524,000 after purchasing an additional 26,890 shares during the period. NewSquare Capital LLC boosted its position in shares of Ally Financial by 21,520.9% in the 3rd quarter. NewSquare Capital LLC now owns 27,891 shares of the financial services provider's stock valued at $1,093,000 after purchasing an additional 27,762 shares during the period. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Ally Financial in the 3rd quarter valued at about $1,194,000. Principal Financial Group Inc. boosted its position in shares of Ally Financial by 7.5% in the 3rd quarter. Principal Financial Group Inc. now owns 674,471 shares of the financial services provider's stock valued at $26,439,000 after purchasing an additional 47,184 shares during the period. Finally, American Century Companies Inc. boosted its position in shares of Ally Financial by 30.9% in the 3rd quarter. American Century Companies Inc. now owns 2,251,925 shares of the financial services provider's stock valued at $88,276,000 after purchasing an additional 531,269 shares during the period. 88.76% of the stock is owned by institutional investors and hedge funds.

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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