Ally Financial (NYSE:ALLY) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Ally Financial from “hold” to “buy,” adding to a generally positive analyst outlook on the stock.
• Other firms have also been constructive: Goldman Sachs, Morgan Stanley, and Bank of America raised their price targets, while the consensus rating remains Moderate Buy with an average target price of $54.14.
• Ally recently beat quarterly expectations, posting $1.11 EPS versus $0.93 expected and revenue of $2.18 billion, while insiders and institutions continue to actively trade the stock.

Ally Financial (NYSE:ALLY - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Sunday.

A number of other brokerages also recently issued reports on ALLY. The Goldman Sachs Group lifted their price target on shares of Ally Financial from $50.00 to $56.00 and gave the company a "buy" rating in a report on Monday, April 20th. Barclays lifted their price target on shares of Ally Financial from $54.00 to $56.00 and gave the company an "equal weight" rating in a report on Monday, April 20th. JPMorgan Chase & Co. dropped their price objective on shares of Ally Financial from $48.00 to $46.00 and set an "overweight" rating for the company in a research note on Thursday, April 9th. Morgan Stanley lifted their price target on shares of Ally Financial from $53.00 to $55.00 and gave the stock an "overweight" rating in a research note on Monday, April 20th. Finally, Bank of America lifted their price target on shares of Ally Financial from $51.00 to $52.00 and gave the stock a "buy" rating in a research note on Friday, April 10th. Fourteen analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $54.14.

Ally Financial Price Performance

Shares of NYSE ALLY opened at $42.85 on Friday. Ally Financial has a twelve month low of $34.30 and a twelve month high of $47.27. The firm has a market cap of $13.13 billion, a P/E ratio of 10.45, a PEG ratio of 0.26 and a beta of 1.12. The company has a 50 day moving average of $42.06 and a 200 day moving average of $42.02. 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 (NYSE:ALLY - Get Free Report) last issued its earnings results on Friday, April 17th. The financial services provider reported $1.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.93 by $0.18. Ally Financial had a net margin of 16.47% and a return on equity of 11.41%. The company had revenue of $2.18 billion for the quarter, compared to analysts' expectations of $2.14 billion. During the same quarter last year, the company posted $0.58 earnings per share. The firm's quarterly revenue was up 36.4% on a year-over-year basis. As a group, research analysts expect that Ally Financial will post 5.3 EPS for the current fiscal year.

Insider Buying and Selling at Ally Financial

In related news, insider Douglas R. Timmerman sold 39,675 shares of the stock in a transaction on Friday, April 17th. The shares were sold at an average price of $45.17, for a total transaction of $1,792,119.75. Following the sale, the insider directly owned 477,627 shares of the company's stock, valued at approximately $21,574,411.59. This represents a 7.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Stephanie N. Richard sold 5,000 shares of the stock in a transaction on Friday, May 15th. The stock was sold at an average price of $42.14, for a total transaction of $210,700.00. Following 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 Investors Weigh In On Ally Financial

A number of hedge funds have recently modified their holdings of ALLY. SJS Investment Consulting Inc. boosted its stake in Ally Financial by 30.8% during the first quarter. SJS Investment Consulting Inc. now owns 1,019 shares of the financial services provider's stock worth $40,000 after buying an additional 240 shares during the period. Fifth Third Wealth Advisors LLC boosted its stake in shares of Ally Financial by 3.1% in the first quarter. Fifth Third Wealth Advisors LLC now owns 8,010 shares of the financial services provider's stock valued at $314,000 after purchasing an additional 243 shares during the period. Brown Brothers Harriman & Co. boosted its stake in shares of Ally Financial by 31.5% in the fourth quarter. Brown Brothers Harriman & Co. now owns 1,052 shares of the financial services provider's stock valued at $48,000 after purchasing an additional 252 shares during the period. Sweeney & Michel LLC boosted its stake in shares of Ally Financial by 4.0% in the third quarter. Sweeney & Michel LLC now owns 6,663 shares of the financial services provider's stock valued at $246,000 after purchasing an additional 256 shares during the period. Finally, Triumph Capital Management boosted its stake in shares of Ally Financial by 9.2% in the fourth quarter. Triumph Capital Management now owns 3,133 shares of the financial services provider's stock valued at $142,000 after purchasing an additional 265 shares during the period. 88.76% of the stock is currently owned by institutional investors and hedge funds.

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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