Ally Financial Inc. $ALLY Shares Bought by Capital World Investors

Key Points

• Capital World Investors increased its stake in Ally Financial by 7.4% in the fourth quarter, buying an additional 40,792 shares. The fund now owns 592,506 shares valued at about $26.8 million.
• Ally Financial posted strong quarterly results, with EPS of $1.11 versus $0.93 expected and revenue of $2.18 billion, up 36.4% year over year. Analysts now expect full-year EPS of 5.28.
• The company declared a quarterly dividend of $0.30, or $1.20 annualized, for a yield of 2.8%. Meanwhile, analysts remain mostly bullish, with 14 Buy ratings and an average price target of $54.14.

Capital World Investors boosted its stake in shares of Ally Financial Inc. (NYSE:ALLY - Free Report) by 7.4% in the fourth quarter, according to its most recent disclosure with the SEC. The firm owned 592,506 shares of the financial services provider's stock after acquiring an additional 40,792 shares during the period. Capital World Investors owned about 0.19% of Ally Financial worth $26,835,000 at the end of the most recent quarter.

A number of other large investors also recently added to or reduced their stakes in ALLY. Norges Bank acquired a new position in Ally Financial during the fourth quarter worth $157,610,000. Wellington Management Group LLP raised its position in Ally Financial by 19.6% during the third quarter. Wellington Management Group LLP now owns 11,938,680 shares of the financial services provider's stock worth $467,996,000 after acquiring an additional 1,958,201 shares during the period. Qube Research & Technologies Ltd raised its position in Ally Financial by 8,255.7% during the third quarter. Qube Research & Technologies Ltd now owns 1,230,384 shares of the financial services provider's stock worth $48,231,000 after acquiring an additional 1,215,659 shares during the period. Danica Pension Livsforsikringsaktieselskab acquired a new position in Ally Financial during the third quarter worth $45,733,000. Finally, Bank of America Corp DE raised its position in Ally Financial by 38.9% during the second quarter. Bank of America Corp DE now owns 3,771,190 shares of the financial services provider's stock worth $146,888,000 after acquiring an additional 1,056,060 shares during the period. 88.76% of the stock is currently owned by institutional investors and hedge funds.

Ally Financial Trading Up 2.4%

Shares of ALLY opened at $43.39 on Wednesday. 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 Inc. has a 12-month low of $35.90 and a 12-month high of $47.27. The firm has a 50-day moving average price of $42.55 and a 200 day moving average price of $42.21. The firm has a market capitalization of $13.30 billion, a P/E ratio of 10.58, a P/E/G ratio of 0.26 and a beta of 1.10.

Ally Financial (NYSE:ALLY - Get Free Report) last announced its quarterly earnings data on Friday, April 17th. The financial services provider reported $1.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.93 by $0.18. Ally Financial had a net margin of 16.47% and a return on equity of 11.41%. The firm had revenue of $2.18 billion during the quarter, compared to analyst estimates of $2.14 billion. During the same quarter in the prior year, the firm posted $0.58 earnings per share. Ally Financial's quarterly revenue was up 36.4% on a year-over-year basis. Sell-side analysts forecast that Ally Financial Inc. will post 5.28 EPS for the current year.

Ally Financial Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were issued a $0.30 dividend. The ex-dividend date of this dividend was Friday, May 1st. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.8%. Ally Financial's dividend payout ratio is currently 29.27%.

Analyst Ratings Changes

ALLY has been the subject of a number of research reports. The Goldman Sachs Group upped their target price on shares of Ally Financial from $50.00 to $56.00 and gave the stock a "buy" rating in a report on Monday, April 20th. Bank of America upped their target price 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. Morgan Stanley upped their target price on shares of Ally Financial from $53.00 to $55.00 and gave the stock an "overweight" rating in a report on Monday, April 20th. Truist Financial set a $54.00 target price on shares of Ally Financial in a report on Tuesday, April 21st. Finally, Weiss Ratings lowered shares of Ally Financial from a "buy (b)" rating to a "buy (b-)" rating in a report on Tuesday, May 26th. Fourteen research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $54.14.

Insider Transactions at Ally Financial

In related news, insider Stephanie N. Richard sold 5,000 shares of the company's stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $42.14, for a total value of $210,700.00. Following the completion of the sale, the insider owned 93,927 shares of the company's stock, valued at approximately $3,958,083.78. This represents a 5.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Douglas R. Timmerman sold 39,675 shares of the company's stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $45.17, for a total transaction of $1,792,119.75. Following the completion of the sale, the insider directly owned 477,627 shares of the company's stock, valued at $21,574,411.59. This represents a 7.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.46% 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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