Ally Financial Inc. $ALLY Stock: Sterling Capital Management LLC Reduces Position

Key Points

• Sterling Capital Management cut its Ally Financial stake by 82.9% in the third quarter, leaving it with 12,960 shares valued at approximately $488,000. Institutional investors and hedge funds collectively own 88.76% of Ally’s stock.
• Ally reported quarterly earnings of $1.34 per share, slightly ahead of estimates, while revenue rose 6.1% year over year to $2.35 billion. The company also increased its quarterly dividend from $0.30 to $0.35 per share, producing a 3.6% annualized yield.
• Analyst sentiment remains mixed but leans positive: Ally has a consensus “Moderate Buy” rating and a $48.07 target price, though several firms recently downgraded the stock or reduced their price targets.

Sterling Capital Management LLC reduced its holdings in shares of Ally Financial Inc. (NYSE:ALLY - Free Report) by 82.9% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 12,960 shares of the financial services provider's stock after selling 62,674 shares during the period. Sterling Capital Management LLC's holdings in Ally Financial were worth $488,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds also recently added to or reduced their stakes in the business. Pension & Wealth Management Advisors Inc. purchased a new stake in shares of Ally Financial during the third quarter worth about $27,000. Trust Co. of Vermont acquired a new position in shares of Ally Financial during the second quarter valued at about $36,000. Elevation Wealth Partners LLC raised its position in shares of Ally Financial by 92.2% in the 3rd quarter. Elevation Wealth Partners LLC now owns 1,005 shares of the financial services provider's stock valued at $38,000 after purchasing an additional 482 shares during the last quarter. SJS Investment Consulting Inc. raised its position 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 valued at $40,000 after purchasing an additional 240 shares during the last quarter. Finally, Philadelphia Investment Partners LLC purchased a new position in shares of Ally Financial in the 2nd quarter valued at approximately $53,000. 88.76% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Ally Financial

In other Ally Financial news, insider Stephanie Richard sold 5,000 shares of Ally Financial stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $44.23, for a total transaction of $221,150.00. Following the completion of the sale, the insider directly owned 88,927 shares in the company, valued at approximately $3,933,241.21. The trade was a 5.32% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider Kathleen Patterson sold 12,831 shares of the company'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 sale, the insider directly owned 67,781 shares in the company, valued at $2,619,735.65. This trade represents a 15.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 0.46% of the company's stock.

Ally Financial Trading Up 0.3%

Shares of NYSE:ALLY opened at $38.83 on Thursday. The company has a quick ratio of 0.93, a current ratio of 0.94 and a debt-to-equity ratio of 1.45. Ally Financial Inc. has a 52-week low of $35.92 and a 52-week high of $47.29. The stock has a market cap of $11.81 billion, a price-to-earnings ratio of 8.91, a PEG ratio of 0.30 and a beta of 1.11. The business has a 50-day moving average price of $39.94 and a 200-day moving average price of $41.98.

Ally Financial (NYSE:ALLY - Get Free Report) last issued its earnings results on Tuesday, October 20th. The financial services provider reported $1.34 EPS for the quarter, beating analysts' consensus estimates of $1.33 by $0.01. The firm had revenue of $2.35 billion for the quarter, compared to analyst estimates of $2.31 billion. Ally Financial had a return on equity of 12.11% and a net margin of 16.84%. Ally Financial's revenue for the quarter was up 6.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.15 earnings per share. Equities analysts predict that Ally Financial Inc. will post 4.98 EPS for the current year.

Ally Financial Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, November 16th. Shareholders of record on Monday, November 2nd will be given a dividend of $0.35 per share. The ex-dividend date of this dividend is Monday, November 2nd. This represents a $1.40 dividend on an annualized basis and a yield of 3.6%. This is a boost from Ally Financial's previous quarterly dividend of $0.30. Ally Financial's payout ratio is 27.52%.

Wall Street Analyst Weigh In

Several analysts have weighed in on the stock. Barclays dropped their target price on shares of Ally Financial from $56.00 to $48.00 and set an "equal weight" rating on the stock in a research report on Wednesday, October 21st. Morgan Stanley cut shares of Ally Financial from an "overweight" rating to an "equal weight" rating and decreased their price target for the stock from $55.00 to $43.00 in a report on Monday, October 12th. Royal Bank Of Canada lowered their price objective on shares of Ally Financial from $55.00 to $50.00 and set an "outperform" rating for the company in a research note on Friday, October 9th. Wells Fargo & Company downgraded shares of Ally Financial from an "overweight" rating to an "equal weight" rating and lowered their price objective for the stock from $55.00 to $42.00 in a research note on Wednesday, September 30th. Finally, Bank of America boosted their price objective on shares of Ally Financial from $52.00 to $53.00 and gave the company a "buy" rating in a report on Wednesday, July 8th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $48.07.

Ally Financial Profile

Ally Financial Inc is a digital financial services company headquartered in Detroit, Michigan, and traded on the New York Stock Exchange under the symbol ALLY. The company primarily serves consumers, automotive dealers and businesses in the United States through online and branchless banking and financing platforms.

Ally's automotive finance business provides retail installment loans and leases to consumers and floorplan financing and other services to automotive dealers. Its consumer banking operations, conducted through Ally Bank, offer deposit products such as savings accounts, money market accounts and certificates of deposit, along with consumer lending products.

The company also provides credit cards and commercial financing, and offers investment and brokerage services through Ally Invest.

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