Ally Financial Inc. (ALLY) - What Are Brokerages Saying About This Stock?

Key Points

• Analysts have a “Moderate Buy” consensus on Ally Financial: 10 of 17 brokerages rate it Buy, one Strong Buy, five Hold, and one Sell. The average 12-month price target is $47.93.
• Ally slightly beat quarterly earnings and revenue estimates, reporting EPS of $1.34 and revenue of $2.35 billion; revenue rose 6.1% year over year.
• The company raised its quarterly dividend from $0.30 to $0.35 per share, equivalent to an annualized $1.40 and a 3.7% yield.

Ally Financial Inc. (NYSE:ALLY - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the seventeen brokerages that are currently covering the firm, Marketbeat reports. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating, ten have given a buy rating and one has given a strong buy rating to the company. The average 12 month price target among brokerages that have covered the stock in the last year is $47.93.

A number of equities analysts have recently commented on the stock. UBS Group cut their target price on shares of Ally Financial from $50.00 to $48.00 and set a "buy" rating on the stock in a research note on Monday, November 2nd. The Goldman Sachs Group set a $45.00 target price on shares of Ally Financial in a research report on Tuesday, October 6th. Truist Financial decreased their price objective on shares of Ally Financial from $50.00 to $48.00 and set a "buy" rating for the company in a research report on Monday, October 26th. Zacks Research cut Ally Financial from a "hold" rating to a "strong sell" rating in a research note on Tuesday, October 13th. Finally, Wells Fargo & Company cut Ally Financial from an "overweight" rating to an "equal weight" rating and reduced their target price for the company from $55.00 to $42.00 in a research note on Wednesday, September 30th.

Ally Financial Trading Up 0.9%

Shares of NYSE ALLY traded up $0.33 during trading on Friday, hitting $38.33. 3,130,425 shares of the company traded hands, compared to its average volume of 4,342,970. The firm has a market capitalization of $11.50 billion, a P/E ratio of 8.79, a P/E/G ratio of 0.32 and a beta of 1.17. The company has a quick ratio of 0.93, a current ratio of 0.94 and a debt-to-equity ratio of 1.45. The company has a 50-day moving average price of $38.94 and a 200-day moving average price of $41.70. Ally Financial has a 1 year low of $35.92 and a 1 year high of $47.29.

Ally Financial (NYSE:ALLY - Get Free Report) last issued its earnings results on Tuesday, October 20th. The financial services provider reported $1.34 earnings per share for the quarter, topping the consensus estimate of $1.33 by $0.01. Ally Financial had a return on equity of 12.11% and a net margin of 16.84%. The business had revenue of $2.35 billion for the quarter, compared to analyst estimates of $2.31 billion. During the same period last year, the company posted $1.15 EPS. The business's quarterly revenue was up 6.1% on a year-over-year basis. On average, equities analysts predict that Ally Financial will post 4.99 EPS for the current year.

Ally Financial Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 16th. Shareholders of record on Monday, November 2nd will be paid a dividend of $0.35 per share. This is a positive change from Ally Financial's previous quarterly dividend of $0.30. The ex-dividend date is Monday, November 2nd. This represents a $1.40 dividend on an annualized basis and a yield of 3.7%. Ally Financial's payout ratio is currently 32.11%.

Insiders Place Their Bets

In other Ally Financial news, insider Kathleen Patterson sold 12,831 shares of the firm's stock in a transaction on Wednesday, October 21st. The shares were sold at an average price of $38.65, for a total transaction of $495,918.15. Following the completion of the transaction, the insider directly owned 67,781 shares of the company's stock, valued at $2,619,735.65. This trade represents a 15.92% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 0.46% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. BlackRock Inc. acquired a new stake in shares of Ally Financial during the 2nd quarter valued at approximately $1,315,659,000. Berkshire Hathaway Inc bought a new position in shares of Ally Financial during the second quarter valued at approximately $1,240,650,000. Dimensional Fund Advisors LP raised its position 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 worth $353,776,000 after purchasing an additional 309,638 shares during the period. Arrowstreet Capital Limited Partnership raised its position in shares of Ally Financial by 11.7% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 6,783,947 shares of the financial services provider's stock worth $266,134,000 after purchasing an additional 712,443 shares during the period. Finally, Donald Smith & CO. Inc. acquired a new stake in shares of Ally Financial during the 2nd quarter worth approximately $172,509,000. Institutional investors own 88.76% of the company's stock.

Ally Financial Company Profile

Ally Financial Inc. is a U.S. digital financial services company and bank holding company. Its primary businesses include automotive finance and consumer banking, with products and services offered through digital channels and a network of auto dealerships. Through its automotive finance operations, Ally provides loans and leases to vehicle buyers, financing to dealerships, and related services. Ally Bank offers consumer deposit products, including checking accounts, savings accounts and certificates of deposit, as well as lending products.

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