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

Key Points

• Citigroup cut its price target on Ally Financial from $70 to $58, while keeping a buy rating on the stock. The new target still implies about 27% upside from the prior close.
• Analyst sentiment remains generally positive overall, with 14 Buy ratings and 2 Hold ratings. MarketBeat says the stock’s consensus rating is Moderate Buy with an average price target of $53.29.
• Ally Financial recently reported strong quarterly results, including EPS of $1.11 versus $0.93 expected and revenue of $2.18 billion, up 36.4% year over year. Despite this, some insiders have recently sold shares.

Ally Financial (NYSE:ALLY - Get Free Report) had its price target cut by equities research analysts at Citigroup from $70.00 to $58.00 in a research note issued to investors on Tuesday,Benzinga reports. The brokerage currently has a "buy" rating on the financial services provider's stock. Citigroup's target price points to a potential upside of 27.44% from the stock's previous close.

A number of other equities research analysts have also recently issued reports on the company. Barclays raised their target price on Ally Financial from $54.00 to $56.00 and gave the company an "equal weight" rating in a research note on Monday, April 20th. Weiss Ratings lowered shares of Ally Financial from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, May 26th. Bank of America increased their price objective on shares of Ally Financial from $51.00 to $52.00 and gave the stock a "buy" rating in a report on Friday, April 10th. JPMorgan Chase & Co. cut their price objective on shares of Ally Financial from $48.00 to $46.00 and set an "overweight" rating on the stock in a research report on Thursday, April 9th. Finally, Truist Financial set a $54.00 target price on shares of Ally Financial in a research note on Tuesday, April 21st. Fourteen analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $53.29.

Ally Financial Stock Performance

ALLY traded down $0.06 on Tuesday, hitting $45.51. 208,269 shares of the company's stock were exchanged, compared to its average volume of 3,623,425. The firm has a market cap of $13.95 billion, a PE ratio of 11.10, a P/E/G ratio of 0.28 and a beta of 1.10. Ally Financial has a twelve month low of $35.92 and a twelve month high of $47.27. The stock has a fifty day moving average of $43.40 and a two-hundred day moving average of $42.50. The company has a current ratio of 0.93, a quick ratio of 0.93 and a debt-to-equity ratio of 1.31.

Ally Financial (NYSE:ALLY - Get Free Report) last posted its earnings results on Friday, April 17th. The financial services provider reported $1.11 EPS for the quarter, beating the consensus estimate of $0.93 by $0.18. Ally Financial had a return on equity of 11.41% and a net margin of 16.47%.The company had revenue of $2.18 billion during the quarter, compared to analyst estimates of $2.14 billion. During the same period in the prior year, the company earned $0.58 earnings per share. The business's revenue was up 36.4% compared to the same quarter last year. On average, research analysts anticipate that Ally Financial will post 5.28 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Stephanie N. Richard sold 5,000 shares of the stock in a transaction on Friday, May 15th. The stock was sold at an average price of $42.14, for a total transaction of $210,700.00. Following the completion of the sale, the insider owned 93,927 shares in the company, valued at approximately $3,958,083.78. This represents a 5.05% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Douglas R. Timmerman sold 39,675 shares of the business's stock in a transaction on Friday, April 17th. The stock was sold at an average price of $45.17, for a total value of $1,792,119.75. Following the sale, the insider directly owned 477,627 shares in the company, valued at $21,574,411.59. This trade represents a 7.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.46% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Ally Financial

A number of large investors have recently made changes to their positions in the company. Wellington Management Group LLP lifted its stake in Ally Financial by 19.5% in the 4th quarter. Wellington Management Group LLP now owns 14,271,290 shares of the financial services provider's stock worth $646,347,000 after acquiring an additional 2,332,610 shares in the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Ally Financial by 3.6% during the 1st 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 last quarter. Arrowstreet Capital Limited Partnership raised its position in shares of Ally Financial by 11.7% in the first quarter. Arrowstreet Capital Limited Partnership now owns 6,783,947 shares of the financial services provider's stock valued at $266,134,000 after purchasing an additional 712,443 shares during the period. Geode Capital Management LLC raised its holdings in Ally Financial by 4.7% in the 4th quarter. Geode Capital Management LLC now owns 5,381,838 shares of the financial services provider's stock worth $243,795,000 after acquiring an additional 241,000 shares during the period. Finally, Thrivent Financial for Lutherans lifted its position in shares of Ally Financial by 0.5% during the 4th 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. Institutional investors and hedge funds own 88.76% of the company's stock.

About Ally Financial

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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