Ally Financial (NYSE:ALLY) Given New $50.00 Price Target at Citigroup

Key Points

• Citigroup lowered Ally Financial’s price target from $58 to $50 but maintained a “buy” rating, implying roughly 29.9% upside from the stock’s $38.49 price.
• Analyst sentiment remains broadly positive: Ally has a consensus “Moderate Buy” rating and an average price target of $53.13, supported by recent “outperform,” “overweight,” and “strong-buy” ratings.
• Ally’s latest quarter showed revenue growth of 9.8% year over year to $2.28 billion, though earnings per share of $1.21 narrowly missed estimates; institutional investors own 88.76% of the company.

Ally Financial (NYSE:ALLY - Get Free Report) had its price objective reduced by stock analysts at Citigroup from $58.00 to $50.00 in a research note issued to investors on Friday, Benzinga reports. The firm currently has a "buy" rating on the financial services provider's stock. Citigroup's target price would suggest a potential upside of 29.89% from the company's current price.

ALLY has been the subject of a number of other reports. Royal Bank Of Canada raised their target price on shares of Ally Financial from $52.00 to $55.00 and gave the stock an "outperform" rating in a report on Friday, July 10th. Wells Fargo & Company upped their price target on Ally Financial from $52.00 to $55.00 and gave the company an "overweight" rating in a report on Friday, June 26th. Raymond James Financial initiated coverage on Ally Financial in a research report on Tuesday, September 1st. They set a "strong-buy" rating and a $55.00 price objective for the company. Truist Financial reduced their price objective on Ally Financial from $51.00 to $50.00 and set a "buy" rating for the company in a research note on Wednesday. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Ally Financial in a report on Friday, September 18th. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, Ally Financial currently has an average rating of "Moderate Buy" and a consensus target price of $53.13.

Ally Financial Price Performance

Ally Financial stock traded down $0.25 during midday trading on Friday, hitting $38.49. The company's stock had a trading volume of 516,209 shares, compared to its average volume of 3,461,355. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 1.26. The stock's 50-day moving average price is $42.87 and its 200-day moving average price is $42.72. Ally Financial has a 12 month low of $35.92 and a 12 month high of $47.29. The company has a market capitalization of $11.71 billion, a PE ratio of 9.08, a price-to-earnings-growth ratio of 0.24 and a beta of 1.09.

Ally Financial (NYSE:ALLY - Get Free Report) last issued its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $1.21 earnings per share for the quarter, missing analysts' consensus estimates of $1.22 by ($0.01). The business had revenue of $2.28 billion during the quarter, compared to analyst estimates of $2.22 billion. Ally Financial had a net margin of 16.75% and a return on equity of 11.75%. Ally Financial's revenue was up 9.8% compared to the same quarter last year. During the same period in the previous year, the company posted $0.99 earnings per share. Analysts anticipate that Ally Financial will post 5.2 earnings per share for the current fiscal year.

Insider Transactions at Ally Financial

In other Ally Financial news, insider Stephanie Richard sold 5,000 shares of the business's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $44.23, for a total transaction of $221,150.00. Following the sale, the insider directly owned 88,927 shares of the company's stock, valued at $3,933,241.21. The trade was a 5.32% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 0.46% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Fideuram Asset Management Ireland dac acquired a new stake in Ally Financial during the 4th quarter worth about $35,000. Trust Co. of Vermont purchased a new position in Ally Financial during the 2nd quarter valued at about $36,000. Harvest Fund Management Co. Ltd acquired a new position in shares of Ally Financial in the 4th quarter valued at about $38,000. SJS Investment Consulting Inc. lifted its position in shares of Ally Financial by 30.8% in the first quarter. SJS Investment Consulting Inc. now owns 1,019 shares of the financial services provider's stock worth $40,000 after purchasing an additional 240 shares in the last quarter. Finally, Clearstead Advisors LLC lifted its position in shares of Ally Financial by 107.8% in the fourth quarter. Clearstead Advisors LLC now owns 1,043 shares of the financial services provider's stock worth $47,000 after purchasing an additional 541 shares in the last quarter. Hedge funds and other institutional investors own 88.76% of the company's stock.

Ally Financial Company Profile

Ally Financial Inc is a digital financial services company headquartered in Detroit, Michigan. Through its subsidiaries, the company provides consumer and commercial financial products, with a primary focus on automotive financing and digital banking.

Ally's automotive business offers retail installment sales contracts, consumer loans and leasing products through a network of automotive dealers. The company also provides dealer financing and related commercial lending services. Through Ally Bank, it offers deposit accounts, personal loans, mortgage products and other banking services, while Ally Invest provides self-directed investment and brokerage services to individuals.

The company serves customers primarily in the United States through digital platforms, dealer relationships and other distribution channels.

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