Basswood Capital Management L.L.C. Makes New $27.46 Million Investment in Ally Financial Inc. $ALLY

Key Points

• Basswood Capital Management initiated a $27.46 million position in Ally Financial, purchasing 597,680 shares and making the stock 1.1% of its portfolio. Institutional investors collectively own 88.76% of Ally.
• Analysts maintain a broadly positive outlook, with 14 Buy ratings and two Holds producing a “Moderate Buy” consensus and an average price target of $53.64.
• Ally’s latest quarter showed revenue growth of 9.8% year over year to $2.28 billion, though EPS of $1.21 narrowly missed estimates. The company also pays a quarterly dividend of $0.30 per share, yielding about 2.8% annually.

Basswood Capital Management L.L.C. bought a new position in shares of Ally Financial Inc. (NYSE:ALLY - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm bought 597,680 shares of the financial services provider's stock, valued at approximately $27,463,000. Ally Financial comprises approximately 1.1% of Basswood Capital Management L.L.C.'s investment portfolio, making the stock its 27th biggest holding. Basswood Capital Management L.L.C. owned 0.20% of Ally Financial at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in the stock. Mirae Asset Global Investments Co. Ltd. bought a new position in shares of Ally Financial in the fourth quarter worth about $29,000. Fideuram Asset Management Ireland dac purchased a new position in Ally Financial in the 4th quarter worth about $35,000. Trust Co. of Vermont bought a new stake in Ally Financial during the 2nd quarter valued at about $36,000. Safe Harbor Fiduciary LLC purchased a new stake in Ally Financial in the 4th quarter valued at about $37,000. Finally, Harvest Fund Management Co. Ltd purchased a new stake in Ally Financial in the 4th quarter valued at about $38,000. 88.76% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Ally Financial

In other news, insider Stephanie N. Richard sold 5,000 shares of Ally Financial stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $44.23, for a total value of $221,150.00. Following the transaction, the insider directly owned 88,927 shares in the company, valued at approximately $3,933,241.21. This trade represents a 5.32% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Company insiders own 0.46% of the company's stock.

Wall Street Analysts Forecast Growth

ALLY has been the topic of a number of research reports. Weiss Ratings raised shares of Ally Financial from a "buy (b-)" rating to a "buy (b)" rating in a research report on Tuesday, June 23rd. Royal Bank Of Canada boosted their price target on Ally Financial from $52.00 to $55.00 and gave the company an "outperform" rating in a report on Friday, July 10th. Citigroup dropped their price objective on Ally Financial from $70.00 to $58.00 and set a "buy" rating on the stock in a research note on Tuesday, June 23rd. Wells Fargo & Company lifted their target price on Ally Financial from $52.00 to $55.00 and gave the company an "overweight" rating in a research report on Friday, June 26th. Finally, Truist Financial decreased their target price on Ally Financial from $54.00 to $51.00 and set a "buy" rating for the company in a research report on Tuesday, August 4th. Fourteen equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, Ally Financial has a consensus rating of "Moderate Buy" and a consensus target price of $53.64.

Ally Financial Trading Down 0.0%

NYSE:ALLY opened at $42.58 on Thursday. The firm has a 50-day simple moving average of $44.64 and a 200-day simple moving average of $42.63. Ally Financial Inc. has a one year low of $35.92 and a one year high of $47.29. The firm has a market cap of $12.95 billion, a P/E ratio of 10.04, a P/E/G ratio of 0.26 and a beta of 1.10. 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 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.22 by ($0.01). The business had revenue of $2.28 billion for the quarter, compared to analysts' expectations of $2.22 billion. Ally Financial had a net margin of 16.75% and a return on equity of 11.75%. The business's quarterly revenue was up 9.8% compared to the same quarter last year. During the same period in the previous year, the business earned $0.99 earnings per share. Equities analysts anticipate that Ally Financial Inc. will post 5.19 EPS for the current fiscal year.

Ally Financial Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Friday, July 31st were given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend was Friday, July 31st. Ally Financial's dividend payout ratio (DPR) 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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