Bank of America Issues Positive Forecast for Ally Financial (NYSE:ALLY) Stock Price

Key Points

• Bank of America raised its price target on Ally to $52 (from $51) and kept a "buy" rating, implying about a 26% upside
• Ally beat fourth-quarter estimates with EPS of $1.09 versus $1.01 and revenue of $2.17 billion (up 4.8% year-over-year), and analysts forecast roughly 3.57 EPS for the current fiscal year.
• Company insiders recently bought shares—CEO Michael George Rhodes purchased 23,800 shares and CFO Russell Hutchinson bought 11,566—and institutional investors own about 88.76% of the stock.

Ally Financial (NYSE:ALLY - Get Free Report) had its price objective upped by analysts at Bank of America from $51.00 to $52.00 in a research report issued on Friday,Benzinga reports. The brokerage currently has a "buy" rating on the financial services provider's stock. Bank of America's price objective points to a potential upside of 26.00% from the stock's current price.

Several other research analysts have also recently weighed in on ALLY. JPMorgan Chase & Co. lowered their target price on Ally Financial from $48.00 to $46.00 and set an "overweight" rating on the stock in a report on Thursday. TD Cowen reaffirmed a "buy" rating on shares of Ally Financial in a report on Thursday, January 8th. Morgan Stanley set a $53.00 price objective on Ally Financial and gave the stock an "overweight" rating in a research note on Tuesday, December 16th. Barclays upped their target price on Ally Financial from $44.00 to $54.00 and gave the company an "equal weight" rating in a report on Monday, January 5th. Finally, Truist Financial reduced their price target on Ally Financial from $51.00 to $50.00 and set a "buy" rating on the stock in a report on Monday, January 26th. Twelve research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $53.29.

Ally Financial Stock Performance

ALLY traded down $0.53 during trading on Friday, reaching $41.27. 876,341 shares of the company's stock were exchanged, compared to its average volume of 3,785,945. Ally Financial has a 1 year low of $29.91 and a 1 year high of $47.27. The company has a debt-to-equity ratio of 1.30, a current ratio of 0.92 and a quick ratio of 0.92. The stock has a market capitalization of $12.71 billion, a P/E ratio of 17.56, a price-to-earnings-growth ratio of 0.21 and a beta of 1.14. The company's fifty day simple moving average is $40.01 and its 200-day simple moving average is $41.22.

Ally Financial (NYSE:ALLY - Get Free Report) last released its quarterly earnings data on Wednesday, January 21st. The financial services provider reported $1.09 earnings per share for the quarter, beating analysts' consensus estimates of $1.01 by $0.08. Ally Financial had a net margin of 10.77% and a return on equity of 10.40%. The company had revenue of $2.17 billion during the quarter, compared to analysts' expectations of $2.15 billion. During the same quarter in the previous year, the company earned $0.78 earnings per share. The firm's revenue for the quarter was up 4.8% on a year-over-year basis. As a group, research analysts predict that Ally Financial will post 3.57 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Michael George Rhodes acquired 23,800 shares of the stock in a transaction dated Friday, January 23rd. The stock was acquired at an average cost of $41.68 per share, with a total value of $991,984.00. Following the completion of the transaction, the chief executive officer owned 49,434 shares in the company, valued at $2,060,409.12. This represents a 92.85% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CFO Russell E. Hutchinson acquired 11,566 shares of the stock in a transaction dated Tuesday, January 27th. The shares were bought at an average cost of $43.17 per share, with a total value of $499,304.22. Following the completion of the transaction, the chief financial officer owned 225,336 shares of the company's stock, valued at approximately $9,727,755.12. This represents a 5.41% increase in their position. The SEC filing for this purchase provides additional information. 0.46% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Ally Financial

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Wellington Management Group LLP raised its stake in shares of Ally Financial by 19.5% during the fourth quarter. Wellington Management Group LLP now owns 14,271,290 shares of the financial services provider's stock worth $646,347,000 after purchasing an additional 2,332,610 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in shares of Ally Financial by 3.5% during the fourth quarter. Dimensional Fund Advisors LP now owns 8,708,942 shares of the financial services provider's stock worth $394,432,000 after purchasing an additional 295,048 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its stake 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 worth $274,978,000 after purchasing an additional 444,756 shares during the last quarter. Geode Capital Management LLC raised its stake 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 worth $243,795,000 after purchasing an additional 241,000 shares during the last quarter. Finally, Thrivent Financial for Lutherans raised its stake in shares of Ally Financial by 0.5% during the fourth quarter. Thrivent Financial for Lutherans now owns 3,867,023 shares of the financial services provider's stock worth $175,137,000 after purchasing an additional 20,198 shares during the last quarter. 88.76% of the stock is owned by institutional investors and hedge funds.

Ally Financial Company Profile

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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