Truist Financial Has Lowered Expectations for Ally Financial (NYSE:ALLY) Stock Price

Key Points

• Truist Financial lowered Ally Financial’s price target from $51 to $50 while maintaining a “buy” rating, implying nearly 29% upside from the stock’s previous close.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus and an average price target of $53.67, despite several recent target adjustments.
• Ally shares fell 0.8% to $38.77. The company narrowly missed quarterly EPS expectations but exceeded revenue estimates, reporting $2.28 billion in revenue, up 9.8% year over year.

Ally Financial (NYSE:ALLY - Get Free Report) had its target price decreased by equities researchers at Truist Financial from $51.00 to $50.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The brokerage presently has a "buy" rating on the financial services provider's stock. Truist Financial's price objective suggests a potential upside of 28.96% from the stock's previous close.

Several other research analysts have also issued reports on the stock. Citigroup lowered their price target on shares of Ally Financial from $70.00 to $58.00 and set a "buy" rating for the company in a report on Tuesday, June 23rd. Wells Fargo & Company upped their price objective on shares of Ally Financial from $52.00 to $55.00 and gave the company an "overweight" rating in a research note on Friday, June 26th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $58.00 price objective on shares of Ally Financial in a research report on Wednesday, July 22nd. Wall Street Zen downgraded shares of Ally Financial from a "buy" rating to a "hold" rating in a research note on Monday, June 8th. Finally, Royal Bank Of Canada boosted their target price on shares of Ally Financial from $52.00 to $55.00 and gave the company an "outperform" rating in a report on Friday, July 10th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $53.67.

Ally Financial Trading Down 0.8%

ALLY traded down $0.30 during midday trading on Wednesday, hitting $38.77. 718,676 shares of the company were exchanged, compared to its average volume of 3,457,236. The firm's 50 day moving average price is $43.18 and its 200-day moving average price is $42.73. Ally Financial has a 1-year low of $35.92 and a 1-year high of $47.29. The firm has a market capitalization of $11.79 billion, a P/E ratio of 9.15, a P/E/G ratio of 0.25 and a beta of 1.09. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 1.26.

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

Insider Buying and Selling at Ally Financial

In related 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 transaction, the insider owned 88,927 shares in the company, valued at $3,933,241.21. The trade was a 5.32% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.46% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Ally Financial

Institutional investors have recently made changes to their positions in the stock. BlackRock Inc. acquired a new position in Ally Financial during the 2nd quarter worth approximately $1,315,659,000. Berkshire Hathaway Inc acquired a new stake in Ally Financial in the second quarter valued at approximately $1,240,650,000. Dimensional Fund Advisors LP grew its stake in Ally Financial by 3.6% in the first quarter. Dimensional Fund Advisors LP now owns 9,018,580 shares of the financial services provider's stock valued at $353,776,000 after acquiring an additional 309,638 shares during the period. Arrowstreet Capital Limited Partnership increased its holdings in shares of Ally Financial by 7.9% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 6,071,504 shares of the financial services provider's stock valued at $274,978,000 after acquiring an additional 444,756 shares in the last quarter. Finally, Geode Capital Management LLC increased its holdings in shares of Ally Financial by 4.7% during the fourth quarter. Geode Capital Management LLC now owns 5,381,838 shares of the financial services provider's stock valued at $243,795,000 after acquiring an additional 241,000 shares in the last quarter. Institutional investors and hedge funds 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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