TD Cowen Cuts Ally Financial (NYSE:ALLY) Price Target to $54.00

Key Points

• TD Cowen lowered Ally Financial’s price target from $55 to $54 but maintained a “buy” rating, implying roughly 42.5% upside from the prior closing price.
• Analyst sentiment remains positive overall, with Ally carrying a “Moderate Buy” consensus rating and an average price target of $51.43.
• Ally shares rose 0.7% to $37.88. The company recently reported quarterly revenue of $2.28 billion, above estimates, though earnings per share of $1.21 narrowly missed expectations.

Ally Financial (NYSE:ALLY - Get Free Report) had its price objective reduced by stock analysts at TD Cowen from $55.00 to $54.00 in a report released on Tuesday, Benzinga reports. The firm presently has a "buy" rating on the financial services provider's stock. TD Cowen's price objective indicates a potential upside of 42.54% from the stock's previous close.

Several other equities research analysts have also recently weighed in on the company. Truist Financial decreased their target price on Ally Financial from $51.00 to $50.00 and set a "buy" rating for the company in a research note on Wednesday, September 23rd. Bank of America upped their target price on shares of Ally Financial from $52.00 to $53.00 and gave the company a "buy" rating in a report on Wednesday, July 8th. Raymond James Financial restated a "strong-buy" rating and issued a $52.00 price objective (down from $55.00) on shares of Ally Financial in a research note on Tuesday. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $58.00 price objective on shares of Ally Financial in a report on Wednesday, July 22nd. Finally, Citigroup cut their target price on Ally Financial from $58.00 to $50.00 and set a "buy" rating on the stock in a research report on Friday, September 25th. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Ally Financial currently has an average rating of "Moderate Buy" and a consensus price target of $51.43.

Ally Financial Stock Up 0.7%

Shares of ALLY stock traded up $0.25 on Tuesday, reaching $37.88. 745,608 shares of the stock were exchanged, compared to its average volume of 3,483,580. The company has a market capitalization of $11.52 billion, a price-to-earnings ratio of 8.92, a PEG ratio of 0.24 and a beta of 1.11. The business's 50 day moving average price is $41.97 and its 200 day moving average price is $42.77. 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 twelve month low of $35.92 and a twelve month high of $47.29.

Ally Financial (NYSE:ALLY - Get Free Report) last posted 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%. The firm's quarterly revenue was up 9.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.99 earnings per share. As a group, sell-side analysts expect that Ally Financial will post 5.16 earnings per share for the current fiscal year.

Insider Buying and Selling

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

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Tocqueville Asset Management L.P. purchased a new position in Ally Financial during the 2nd quarter worth $17,613,000. State of Wyoming acquired a new position in shares of Ally Financial during the second quarter worth about $3,195,000. Amundi raised its holdings in Ally Financial by 183.5% during the second quarter. Amundi now owns 274,754 shares of the financial services provider's stock worth $12,625,000 after purchasing an additional 177,832 shares in the last quarter. Trillium Asset Management LLC acquired a new stake in Ally Financial in the second quarter valued at about $4,886,000. Finally, Berkshire Hathaway Inc acquired a new stake in Ally Financial in the second quarter valued at about $1,240,650,000. 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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