Bank of America Corp DE Makes New $105.38 Million Investment in Ally Financial Inc. $ALLY

Key Points

• Bank of America acquired 2.29 million Ally Financial shares worth approximately $105.4 million, giving it a 0.75% stake. Institutional investors collectively own 88.76% of Ally.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $53.73, despite targets ranging from $51 to $58.
• Ally reported quarterly revenue of $2.28 billion, up 9.8% year over year, though earnings per share of $1.21 narrowly missed estimates. The company also pays a quarterly dividend of $0.30 per share, yielding about 3.0% annually.

Bank of America Corp DE acquired a new stake in shares of Ally Financial Inc. (NYSE:ALLY - Free Report) during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund acquired 2,293,330 shares of the financial services provider's stock, valued at approximately $105,379,000. Bank of America Corp DE owned approximately 0.75% of Ally Financial at the end of the most recent quarter.

Several other large investors also recently modified their holdings of ALLY. Tocqueville Asset Management L.P. acquired a new stake in shares of Ally Financial in the second quarter valued at approximately $17,613,000. State of Wyoming acquired a new position in Ally Financial during the 2nd quarter worth $3,195,000. Intech Investment Management LLC bought a new position in Ally Financial in the 4th quarter valued at $3,926,000. Geode Capital Management LLC boosted its position in 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 valued at $243,795,000 after buying an additional 241,000 shares during the last quarter. Finally, Trillium Asset Management LLC acquired a new stake in shares of Ally Financial in the 2nd quarter valued at $4,886,000. 88.76% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In other Ally Financial news, insider Stephanie Richard sold 5,000 shares of Ally Financial stock in a transaction 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 transaction, the insider directly owned 88,927 shares of the company's stock, valued at $3,933,241.21. The trade was a 5.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.46% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

A number of research firms have issued reports on ALLY. Royal Bank Of Canada upped their target price on shares of Ally Financial from $52.00 to $55.00 and gave the company an "outperform" rating in a research report on Friday, July 10th. Truist Financial cut their price target on Ally Financial from $54.00 to $51.00 and set a "buy" rating on the stock in a research note on Tuesday, August 4th. Wells Fargo & Company raised their price target on Ally Financial from $52.00 to $55.00 and gave the stock an "overweight" rating in a research report on Friday, June 26th. Citigroup decreased their price objective on Ally Financial from $70.00 to $58.00 and set a "buy" rating for the company in a research note on Tuesday, June 23rd. Finally, Raymond James Financial started coverage on Ally Financial in a research note on Tuesday, September 1st. They issued a "strong-buy" rating and a $55.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $53.73.

Ally Financial Stock Down 1.5%

Shares of ALLY stock opened at $39.97 on Friday. 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 $12.16 billion, a price-to-earnings ratio of 9.43, a PEG ratio of 0.25 and a beta of 1.09. The firm's 50-day moving average is $43.41 and its 200-day moving average is $42.71. 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 posted its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $1.21 EPS for the quarter, missing analysts' consensus estimates of $1.22 by ($0.01). The business had revenue of $2.28 billion for the quarter, compared to the consensus estimate of $2.22 billion. Ally Financial had a return on equity of 11.75% and a net margin of 16.75%.The company's revenue for the quarter was up 9.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.99 EPS. Sell-side analysts predict that Ally Financial Inc. will post 5.2 EPS for the current year.

Ally Financial Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Friday, July 31st were issued a dividend of $0.30 per share. The ex-dividend date of this dividend was Friday, July 31st. This represents a $1.20 annualized dividend and a yield of 3.0%. Ally Financial's dividend payout ratio (DPR) is currently 28.30%.

Ally Financial Company Profile

Ally Financial Inc is a digital financial services company headquartered in Detroit, Michigan. Through its subsidiaries, the company provides consumer and commercial financial products, with a primary focus on automotive financing and digital banking.

Ally's automotive business offers retail installment sales contracts, consumer loans and leasing products through a network of automotive dealers. The company also provides dealer financing and related commercial lending services. Through Ally Bank, it offers deposit accounts, personal loans, mortgage products and other banking services, while Ally Invest provides self-directed investment and brokerage services to individuals.

The company serves customers primarily in the United States through digital platforms, dealer relationships and other distribution channels.

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