Hsbc Holdings PLC Acquires 127,346 Shares of Ally Financial Inc. $ALLY

Key Points

• Hsbc Holdings PLC increased its stake in Ally Financial by 19.5% during the first quarter, acquiring an additional 127,346 shares, bringing their total ownership to approximately $28.4 million.
• Ally Financial reported earnings of $0.99 per share for the last quarter, exceeding analysts' expectations of $0.78, with quarterly revenue rising by 3.0% year over year.
• The company declared a quarterly dividend of $0.30 per share, reflecting an annualized dividend yield of 3.0% and signaling a strong return for investors amid increasing institutional interest.

Hsbc Holdings PLC grew its stake in Ally Financial Inc. (NYSE:ALLY - Free Report) by 19.5% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 779,966 shares of the financial services provider's stock after purchasing an additional 127,346 shares during the quarter. Hsbc Holdings PLC owned about 0.25% of Ally Financial worth $28,444,000 at the end of the most recent quarter.

Other institutional investors have also added to or reduced their stakes in the company. Allspring Global Investments Holdings LLC bought a new position in Ally Financial in the 1st quarter worth $1,998,000. Teacher Retirement System of Texas bought a new position in Ally Financial in the 1st quarter worth $1,462,000. Bessemer Group Inc. raised its holdings in Ally Financial by 59.6% in the 1st quarter. Bessemer Group Inc. now owns 1,010 shares of the financial services provider's stock worth $37,000 after purchasing an additional 377 shares in the last quarter. Janney Montgomery Scott LLC raised its holdings in Ally Financial by 56.3% in the 1st quarter. Janney Montgomery Scott LLC now owns 67,630 shares of the financial services provider's stock worth $2,466,000 after purchasing an additional 24,372 shares in the last quarter. Finally, GAMMA Investing LLC raised its holdings in Ally Financial by 40.6% in the 1st quarter. GAMMA Investing LLC now owns 3,295 shares of the financial services provider's stock worth $120,000 after purchasing an additional 952 shares in the last quarter. 88.76% of the stock is currently owned by institutional investors.

Ally Financial Stock Up 1.1%

ALLY stock traded up $0.46 during trading on Wednesday, hitting $41.22. 1,258,179 shares of the stock traded hands, compared to its average volume of 3,866,684. Ally Financial Inc. has a 1 year low of $29.52 and a 1 year high of $43.22. The firm's 50 day moving average is $38.87 and its two-hundred day moving average is $36.31. The stock has a market cap of $12.69 billion, a price-to-earnings ratio of 26.74, a price-to-earnings-growth ratio of 0.32 and a beta of 1.16. The company has a debt-to-equity ratio of 1.30, a current ratio of 0.92 and a quick ratio of 0.92.

Ally Financial (NYSE:ALLY - Get Free Report) last announced its quarterly earnings data on Friday, July 18th. The financial services provider reported $0.99 EPS for the quarter, beating the consensus estimate of $0.78 by $0.21. Ally Financial had a net margin of 7.64% and a return on equity of 9.48%. The company had revenue of $2.08 billion for the quarter, compared to the consensus estimate of $2.03 billion. During the same period in the prior year, the firm posted $0.97 EPS. Ally Financial's revenue for the quarter was up 3.0% on a year-over-year basis. On average, sell-side analysts anticipate that Ally Financial Inc. will post 3.57 EPS for the current year.

Ally Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 15th. Investors of record on Friday, August 1st were given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend was Friday, August 1st. Ally Financial's dividend payout ratio is 77.92%.

Analyst Upgrades and Downgrades

Several brokerages have commented on ALLY. Truist Financial upped their price objective on shares of Ally Financial from $44.00 to $45.00 and gave the stock a "buy" rating in a report on Thursday, July 24th. Wall Street Zen raised shares of Ally Financial from a "sell" rating to a "hold" rating in a research report on Friday, May 23rd. Citigroup reaffirmed a "buy" rating and issued a $59.00 target price (up from $55.00) on shares of Ally Financial in a research report on Wednesday, July 2nd. JPMorgan Chase & Co. upped their target price on shares of Ally Financial from $44.00 to $45.00 and gave the stock an "overweight" rating in a research report on Monday, July 21st. Finally, BTIG Research raised shares of Ally Financial from a "sell" rating to a "neutral" rating in a research report on Monday, July 14th. Nine equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $42.80.

Ally Financial Company Profile

Ally Financial Inc, a digital financial-services company, provides various digital financial products and services in the United States, Canada, and Bermuda. The company operates through Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations segments.