Ally Financial Inc. $ALLY Shares Sold by Royal Bank of Canada

Key Points

• Royal Bank of Canada cut its Ally Financial stake by 33.9% in the first quarter, selling 82,122 shares and retaining 160,408 shares valued at approximately $6.3 million. Institutional investors and hedge funds collectively own 88.76% of Ally’s stock.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and an average price target of $53.64. Fourteen analysts rate the stock Buy, while two assign a Hold rating.
• Ally reported quarterly revenue of $2.28 billion, up 9.8% year over year, though earnings of $1.21 per share narrowly missed estimates. The company declared a quarterly dividend of $0.30 per share, implying a 2.7% yield.

Royal Bank of Canada decreased its stake in shares of Ally Financial Inc. (NYSE:ALLY - Free Report) by 33.9% during the first quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 160,408 shares of the financial services provider's stock after selling 82,122 shares during the quarter. Royal Bank of Canada owned about 0.05% of Ally Financial worth $6,293,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in ALLY. SJS Investment Consulting Inc. increased its stake in shares of Ally Financial by 30.8% in the 1st quarter. SJS Investment Consulting Inc. now owns 1,019 shares of the financial services provider's stock worth $40,000 after acquiring an additional 240 shares during the last quarter. Fifth Third Wealth Advisors LLC boosted its position in shares of Ally Financial by 3.1% during the 1st quarter. Fifth Third Wealth Advisors LLC now owns 8,010 shares of the financial services provider's stock valued at $314,000 after acquiring an additional 243 shares during the last quarter. Brown Brothers Harriman & Co. boosted its position in shares of Ally Financial by 31.5% during the 4th quarter. Brown Brothers Harriman & Co. now owns 1,052 shares of the financial services provider's stock valued at $48,000 after acquiring an additional 252 shares during the last quarter. Triumph Capital Management grew its holdings in shares of Ally Financial by 9.2% in the fourth quarter. Triumph Capital Management now owns 3,133 shares of the financial services provider's stock valued at $142,000 after purchasing an additional 265 shares during the period. Finally, Larson Financial Group LLC grew its holdings in shares of Ally Financial by 25.0% in the fourth quarter. Larson Financial Group LLC now owns 1,340 shares of the financial services provider's stock valued at $61,000 after purchasing an additional 268 shares during the period. Institutional investors and hedge funds own 88.76% of the company's stock.

Insider Activity at Ally Financial

In other news, insider Stephanie N. Richard sold 5,000 shares of the firm's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $44.23, for a total transaction of $221,150.00. Following the completion of the transaction, the insider directly owned 88,927 shares in the company, valued at $3,933,241.21. This trade represents a 5.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.46% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

ALLY has been the topic of a number of analyst reports. Wall Street Zen downgraded shares of Ally Financial from a "buy" rating to a "hold" rating in a research note on Monday, June 8th. Morgan Stanley increased their price target on shares of Ally Financial from $53.00 to $55.00 and gave the company an "overweight" rating in a research note on Monday, April 20th. Bank of America lifted their price target on shares of Ally Financial from $52.00 to $53.00 and gave the company a "buy" rating in a research report on Wednesday, July 8th. Wells Fargo & Company upped their price objective on Ally Financial from $52.00 to $55.00 and gave the company an "overweight" rating in a report on Friday, June 26th. Finally, Royal Bank Of Canada increased their price objective on Ally Financial from $52.00 to $55.00 and gave the stock an "outperform" rating in a research report on Friday, July 10th. Fourteen research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $53.64.

Ally Financial Price Performance

Ally Financial stock opened at $43.97 on Wednesday. The company's 50 day simple moving average is $44.67 and its 200-day simple moving average is $42.55. The company has a market capitalization of $13.38 billion, a price-to-earnings ratio of 10.37, a price-to-earnings-growth ratio of 0.27 and a beta of 1.10. Ally Financial Inc. has a 1 year low of $35.92 and a 1 year high of $47.29. The company has a debt-to-equity ratio of 1.26, a quick ratio of 0.92 and a current ratio of 0.92.

Ally Financial (NYSE:ALLY - Get Free Report) last issued its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $1.21 EPS for the quarter, missing the consensus estimate 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 quarter in the prior year, the company posted $0.99 earnings per share. The business's revenue was up 9.8% compared to the same quarter last year. As a group, equities research analysts expect that Ally Financial Inc. will post 5.19 earnings per share for the current year.

Ally Financial Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Shareholders of record on Friday, July 31st will be paid a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date is Friday, July 31st. Ally Financial's dividend payout ratio is 28.30%.

Ally Financial 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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