Ally Financial (NYSE:ALLY) Issues Earnings Results, Misses Expectations By $0.03 EPS

Key Points

• Ally Financial reported quarterly earnings of $1.21 EPS, missing analyst expectations by $0.03. Revenue came in at $2.28 billion, which was above the consensus estimate of $2.22 billion.
• The stock was down 0.4% after the earnings release and opened at $45.48, near its 52-week high of $47.29. The company currently has a market cap of $13.94 billion and a dividend yield of 2.6%.
• Analyst sentiment remains constructive, with 14 Buy ratings and an average target price of $53.79. Recent firms including Bank of America, RBC, and Wells Fargo all raised price targets on the stock.

Ally Financial (NYSE:ALLY - Get Free Report) released its quarterly earnings results on Tuesday. The financial services provider reported $1.21 EPS for the quarter, missing the consensus estimate of $1.24 by ($0.03), FiscalAI reports. Ally Financial had a net margin of 16.47% and a return on equity of 11.41%. The firm had revenue of $2.28 billion for the quarter, compared to analyst estimates of $2.22 billion.

Ally Financial Stock Down 0.4%

Shares of NYSE:ALLY opened at $45.48 on Tuesday. Ally Financial has a 52-week low of $35.92 and a 52-week high of $47.29. The stock has a market cap of $13.94 billion, a P/E ratio of 11.09, a PEG ratio of 0.26 and a beta of 1.09. The business has a fifty day moving average of $44.15 and a two-hundred day moving average of $42.64. The company has a quick ratio of 0.93, a current ratio of 0.93 and a debt-to-equity ratio of 1.31.

Ally Financial Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Friday, July 31st will be issued a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 2.6%. The ex-dividend date is Friday, July 31st. Ally Financial's payout ratio is currently 29.27%.

Insider Buying and Selling at Ally Financial

In other Ally Financial news, insider Stephanie N. Richard sold 5,000 shares of Ally Financial stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $42.14, for a total transaction 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 0.46% of the company's stock.

Institutional Trading of Ally Financial

Large investors have recently made changes to their positions in the company. Safe Harbor Fiduciary LLC acquired a new position in shares of Ally Financial during the 4th quarter worth about $37,000. CIBC Private Wealth Group LLC boosted its holdings in shares of Ally Financial by 805.1% in the 4th quarter. CIBC Private Wealth Group LLC now owns 896 shares of the financial services provider's stock valued at $41,000 after buying an additional 797 shares in the last quarter. Larson Financial Group LLC grew its position in shares of Ally Financial by 67.0% in the 3rd quarter. Larson Financial Group LLC now owns 1,072 shares of the financial services provider's stock valued at $42,000 after buying an additional 430 shares during the last quarter. Brown Brothers Harriman & Co. raised its stake in Ally Financial by 31.5% during the 4th quarter. Brown Brothers Harriman & Co. now owns 1,052 shares of the financial services provider's stock worth $48,000 after acquiring an additional 252 shares in the last quarter. Finally, EverSource Wealth Advisors LLC raised its stake in Ally Financial by 374.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,477 shares of the financial services provider's stock worth $58,000 after acquiring an additional 1,166 shares in the last quarter. 88.76% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on ALLY. Barclays increased their target price on shares of Ally Financial from $54.00 to $56.00 and gave the stock an "equal weight" rating in a research note on Monday, April 20th. Truist Financial set a $54.00 price target on Ally Financial in a research report on Tuesday, April 21st. Bank of America raised their price objective on Ally Financial from $52.00 to $53.00 and gave the company a "buy" rating in a report on Wednesday, July 8th. Royal Bank Of Canada boosted their price objective on Ally Financial from $52.00 to $55.00 and gave the company an "outperform" rating in a research report on Friday, July 10th. Finally, Wells Fargo & Company upped their target price on Ally Financial from $52.00 to $55.00 and gave the stock an "overweight" rating in a research note on Friday, June 26th. Fourteen equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $53.79.

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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