Ally Financial Inc. $ALLY Stake Increased by Bank of Nova Scotia

Key Points

• Bank of Nova Scotia increased its stake in Ally Financial by 40.2% in the first quarter, buying 107,092 additional shares and bringing its total holding to 373,723 shares worth about $14.7 million.
• Ally Financial recently reported mixed quarterly results: EPS of $1.21 slightly missed estimates, while revenue of $2.28 billion beat expectations and rose 9.8% year over year.
• The company declared a quarterly dividend of $0.30 per share, and analysts remain generally positive with 14 Buy ratings, 2 Hold ratings, and an average target price of $53.86.

Bank of Nova Scotia boosted its stake in shares of Ally Financial Inc. (NYSE:ALLY - Free Report) by 40.2% during the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 373,723 shares of the financial services provider's stock after purchasing an additional 107,092 shares during the period. Bank of Nova Scotia owned about 0.12% of Ally Financial worth $14,661,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also modified their holdings of ALLY. Wellington Management Group LLP increased its holdings in shares of Ally Financial by 19.5% during 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 purchasing an additional 2,332,610 shares during the period. Dimensional Fund Advisors LP raised its stake in Ally Financial by 3.6% during the first quarter. Dimensional Fund Advisors LP now owns 9,018,580 shares of the financial services provider's stock worth $353,776,000 after acquiring an additional 309,638 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in Ally Financial by 7.9% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 6,071,504 shares of the financial services provider's stock valued at $274,978,000 after purchasing an additional 444,756 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of 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 in the last quarter. Finally, Thrivent Financial for Lutherans grew its holdings 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. Institutional investors own 88.76% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have issued reports on ALLY shares. Royal Bank Of Canada upped their price objective on Ally Financial from $52.00 to $55.00 and gave the stock an "outperform" rating in a report on Friday, July 10th. Wall Street Zen cut shares of Ally Financial from a "buy" rating to a "hold" rating in a research report on Monday, June 8th. Barclays increased their target price on Ally Financial from $54.00 to $56.00 and gave the stock an "equal weight" rating in a research note on Monday, April 20th. Wells Fargo & Company lifted their price target on Ally Financial from $52.00 to $55.00 and gave the company an "overweight" rating in a research note on Friday, June 26th. Finally, Bank of America boosted their price objective on shares of Ally Financial from $52.00 to $53.00 and gave the stock a "buy" rating in a research report on Wednesday, July 8th. Fourteen research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $53.86.

Ally Financial Price Performance

Shares of NYSE:ALLY opened at $42.88 on Friday. The firm's fifty day moving average is $44.30 and its 200-day moving average is $42.62. Ally Financial Inc. has a 52 week low of $35.92 and a 52 week high of $47.29. The firm has a market cap of $13.14 billion, a PE ratio of 10.11, a price-to-earnings-growth ratio of 0.26 and a beta of 1.09. The company has a debt-to-equity ratio of 1.26, a quick ratio of 0.93 and a current ratio of 0.92.

Ally Financial (NYSE:ALLY - Get Free Report) last released its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $1.21 earnings per share (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 firm had revenue of $2.28 billion for the quarter, compared to the consensus estimate of $2.22 billion. During the same quarter in the previous year, the business posted $0.99 EPS. The firm's revenue for the quarter was up 9.8% compared to the same quarter last year. Sell-side analysts predict that Ally Financial Inc. will post 5.19 earnings per share for the current year.

Ally Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Friday, July 31st will be issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date is Friday, July 31st. Ally Financial's dividend payout ratio (DPR) is currently 28.30%.

Insider Transactions at Ally Financial

In other Ally Financial news, insider Stephanie N. Richard sold 5,000 shares of Ally Financial stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $42.14, for a total transaction of $210,700.00. Following the transaction, the insider owned 93,927 shares of the company's stock, valued at $3,958,083.78. This trade represents a 5.05% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Company 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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