Ally Financial (NYSE:ALLY) Given New $50.00 Price Target at Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut Ally Financial’s price target from $55 to $50 while maintaining an “outperform” rating, implying roughly 33.5% upside from the $37.45 share price.
• Analyst sentiment remains generally positive: Ally has a consensus “Moderate Buy” rating and an average price target of $51.07, despite Wells Fargo downgrading the stock to “equal weight.”
• 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 the $1.22 consensus estimate.

Ally Financial (NYSE:ALLY - Get Free Report) had its price target cut by research analysts at Royal Bank Of Canada from $55.00 to $50.00 in a report released on Friday, Benzinga reports. The brokerage presently has an "outperform" rating on the financial services provider's stock. Royal Bank Of Canada's target price would suggest a potential upside of 33.53% from the stock's current price.

ALLY has been the subject of several other research reports. TD Cowen reduced their price objective on shares of Ally Financial from $55.00 to $54.00 and set a "buy" rating for the company in a research note on Tuesday. Bank of America boosted their price target on Ally Financial from $52.00 to $53.00 and gave the stock a "buy" rating in a research note on Wednesday, July 8th. UBS Group lowered their target price on shares of Ally Financial from $54.00 to $50.00 and set a "buy" rating for the company in a research note on Monday. Wells Fargo & Company downgraded shares of Ally Financial from an "overweight" rating to an "equal weight" rating and dropped their target price for the stock from $55.00 to $42.00 in a research report on Wednesday, September 30th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $58.00 price target on shares of Ally Financial in a report on Wednesday, July 22nd. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $51.07.

Ally Financial Stock Down 1.0%

Shares of ALLY opened at $37.45 on Friday. The business's 50 day moving average is $41.61 and its 200 day moving average is $42.76. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 1.26. 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 $11.39 billion, a PE ratio of 8.88, a price-to-earnings-growth ratio of 0.24 and a beta of 1.11.

Ally Financial (NYSE:ALLY - Get Free Report) last issued its earnings results on Tuesday, July 21st. The financial services provider reported $1.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.22 by ($0.01). The firm had revenue of $2.28 billion during the quarter, compared to the consensus estimate of $2.22 billion. Ally Financial had a return on equity of 11.75% and a net margin of 16.75%.The company's revenue for the quarter was up 9.8% compared to the same quarter last year. During the same period last year, the firm posted $0.99 earnings per share. Research analysts expect that Ally Financial will post 5.05 earnings per share for the current fiscal year.

Insider Buying and Selling at Ally Financial

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

Institutional Investors Weigh In On Ally Financial

Several large investors have recently made changes to their positions in ALLY. SJS Investment Consulting Inc. increased its position 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 valued at $40,000 after acquiring an additional 240 shares during the last quarter. Fifth Third Wealth Advisors LLC increased its holdings in Ally Financial by 3.1% during the 1st quarter. Fifth Third Wealth Advisors LLC now owns 8,010 shares of the financial services provider's stock worth $314,000 after purchasing an additional 243 shares during the period. Farther Finance Advisors LLC lifted its stake in Ally Financial by 3.1% in the third quarter. Farther Finance Advisors LLC now owns 9,247 shares of the financial services provider's stock worth $348,000 after acquiring an additional 282 shares during the period. Arizona State Retirement System increased its holdings in Ally Financial by 0.4% during the second quarter. Arizona State Retirement System now owns 76,467 shares of the financial services provider's stock valued at $3,514,000 after buying an additional 296 shares during the period. Finally, Waverly Advisors LLC raised its position in shares of Ally Financial by 1.3% in the 2nd quarter. Waverly Advisors LLC now owns 23,749 shares of the financial services provider's stock worth $1,091,000 after acquiring an additional 307 shares in the last quarter. Institutional investors and hedge funds own 88.76% of the company's stock.

About Ally Financial

Ally Financial Inc NYSE: ALLY is a digital financial-services company headquartered in Detroit, Michigan. Its principal businesses include automotive financing, consumer banking, commercial finance and other lending services, primarily serving customers and businesses in the United States.

Through Ally Auto, the company provides retail installment loans and leases for new and used vehicles, along with financing and related services for automotive dealers. Ally Bank offers online checking and savings accounts, money market accounts, certificates of deposit and other deposit products.

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