Ally Financial (NYSE:ALLY) Upgraded by Wall Street Zen to Buy Rating

Key Points

• Wall Street Zen upgraded Ally Financial to a "buy" from "hold", and the stock carries a consensus "Moderate Buy" rating from analysts with a consensus target price of $54.14.
• Ally recently beat quarterly estimates with EPS of $1.11 versus $0.93 and revenue of $2.18 billion (up 36.4% year-over-year), trading at a PE of 10.78 and a market cap of $13.61 billion.
• Insider activity was mixed—an executive sold ~39,675 shares while the CFO bought 11,566 shares—and institutional ownership is high at 88.76%, with large stakes added by investors like Norges Bank and Wellington.

Ally Financial (NYSE:ALLY - Get Free Report) was upgraded by analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report released on Saturday.

A number of other brokerages have also recently issued reports on ALLY. Morgan Stanley upped their price objective 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. Deutsche Bank Aktiengesellschaft upped their price objective on shares of Ally Financial from $55.00 to $57.00 and gave the company a "buy" rating in a research note on Thursday, January 22nd. Bank of America upped their price objective on shares of Ally Financial from $51.00 to $52.00 and gave the company a "buy" rating in a research note on Friday, April 10th. BTIG Research reaffirmed a "neutral" rating on shares of Ally Financial in a research note on Tuesday, January 6th. Finally, JPMorgan Chase & Co. cut 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. Thirteen investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, Ally Financial has a consensus rating of "Moderate Buy" and a consensus target price of $54.14.

Ally Financial Price Performance

ALLY stock opened at $44.21 on Friday. The company has a debt-to-equity ratio of 1.31, a current ratio of 0.93 and a quick ratio of 0.93. Ally Financial has a one year low of $31.45 and a one year high of $47.27. The stock has a market cap of $13.61 billion, a PE ratio of 10.78, a P/E/G ratio of 0.27 and a beta of 1.14. The firm has a 50 day simple moving average of $40.41 and a two-hundred day simple moving average of $41.48.

Ally Financial (NYSE:ALLY - Get Free Report) last released its quarterly earnings results on Friday, April 17th. The financial services provider reported $1.11 EPS for the quarter, topping analysts' consensus estimates of $0.93 by $0.18. Ally Financial had a net margin of 16.47% and a return on equity of 11.41%. The business had revenue of $2.18 billion during the quarter, compared to analysts' expectations of $2.14 billion. During the same quarter in the previous year, the company earned $0.58 EPS. The business's quarterly revenue was up 36.4% compared to the same quarter last year. On average, analysts predict that Ally Financial will post 5.3 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Douglas R. Timmerman sold 39,675 shares of the company's 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 completion of the sale, the insider directly owned 477,627 shares in the company, valued at $21,574,411.59. This represents a 7.67% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CFO Russell E. Hutchinson purchased 11,566 shares of the stock in a transaction that occurred on Tuesday, January 27th. The shares were purchased at an average price of $43.17 per share, with a total value of $499,304.22. Following the completion of the acquisition, the chief financial officer directly owned 225,336 shares in the company, valued at $9,727,755.12. The trade was a 5.41% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 0.46% of the company's stock.

Institutional Investors Weigh In On Ally Financial

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ALLY. Norges Bank bought a new stake in Ally Financial during the 4th quarter valued at $157,610,000. Wellington Management Group LLP raised its holdings in Ally Financial by 19.5% during the 4th quarter. Wellington Management Group LLP now owns 14,271,290 shares of the financial services provider's stock valued at $646,347,000 after buying an additional 2,332,610 shares during the last quarter. Qube Research & Technologies Ltd raised its holdings in Ally Financial by 8,255.7% during the 3rd quarter. Qube Research & Technologies Ltd now owns 1,230,384 shares of the financial services provider's stock valued at $48,231,000 after buying an additional 1,215,659 shares during the last quarter. Danica Pension Livsforsikringsaktieselskab bought a new stake in Ally Financial during the 3rd quarter valued at $45,733,000. Finally, Bank of America Corp DE raised its holdings in Ally Financial by 38.9% during the 2nd quarter. Bank of America Corp DE now owns 3,771,190 shares of the financial services provider's stock valued at $146,888,000 after buying an additional 1,056,060 shares during the last quarter. 88.76% of the stock is currently owned by institutional investors.

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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