California State Teachers Retirement System Purchases 14,015,057 Shares of Ally Financial Inc. $ALLY

Key Points

• California State Teachers Retirement System increased its Ally Financial stake by 4,362.7%, purchasing 14,015,057 shares and bringing its ownership to roughly 4.71%, valued at $658.8 million. Institutional investors collectively own 88.76% of the company.
• Ally Financial reported quarterly revenue of $2.28 billion, up 9.8% year over year, but earnings of $1.21 per share narrowly missed analysts’ $1.22 estimate. The company also maintains a quarterly dividend of $0.30 per share, yielding approximately 2.9%.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $53.73, compared with the reported share price of $42.08.

California State Teachers Retirement System lifted its holdings in Ally Financial Inc. (NYSE:ALLY - Free Report) by 4,362.7% in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 14,336,308 shares of the financial services provider's stock after purchasing an additional 14,015,057 shares during the quarter. California State Teachers Retirement System owned about 4.71% of Ally Financial worth $658,753,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new position in shares of Ally Financial during the second quarter worth $1,315,659,000. Berkshire Hathaway Inc acquired a new stake in shares of Ally Financial during the 2nd quarter worth approximately $1,240,650,000. Wellington Management Group LLP grew its stake 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 increased its holdings in shares of Ally Financial by 3.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 9,018,580 shares of the financial services provider's stock valued at $353,776,000 after purchasing an additional 309,638 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its holdings in shares of Ally Financial by 11.7% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 6,783,947 shares of the financial services provider's stock valued at $266,134,000 after purchasing an additional 712,443 shares in the last quarter. 88.76% of the stock is currently owned by hedge funds and other institutional investors.

Ally Financial Stock Performance

NYSE:ALLY opened at $42.08 on Monday. The company has a market cap of $12.80 billion, a P/E ratio of 9.93, a P/E/G ratio of 0.26 and a beta of 1.09. Ally Financial Inc. has a twelve month low of $35.92 and a twelve month high of $47.29. The company's 50-day moving average price is $43.85 and its 200-day moving average price is $42.72. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 1.26.

Ally Financial (NYSE:ALLY - Get Free Report) last announced its quarterly earnings data 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 company had revenue of $2.28 billion for the quarter, compared to analysts' expectations of $2.22 billion. Ally Financial had a return on equity of 11.75% and a net margin of 16.75%.The business's quarterly revenue was up 9.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.99 EPS. On average, sell-side analysts forecast that Ally Financial Inc. will post 5.2 earnings per share for the current fiscal year.

Ally Financial Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Friday, July 31st were paid a dividend of $0.30 per share. The ex-dividend date was Friday, July 31st. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.9%. Ally Financial's payout ratio is presently 28.30%.

Insider Buying and Selling

In other news, insider Stephanie Richard sold 5,000 shares of the company's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $44.23, for a total value of $221,150.00. Following the completion of the transaction, the insider owned 88,927 shares in the company, valued at approximately $3,933,241.21. This represents a 5.32% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. 0.46% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

ALLY has been the topic of several research analyst reports. Raymond James Financial initiated coverage on Ally Financial in a report on Tuesday, September 1st. They issued a "strong-buy" rating and a $55.00 price objective on the stock. Royal Bank Of Canada lifted their price target on shares of Ally Financial from $52.00 to $55.00 and gave the company an "outperform" rating in a research note on Friday, July 10th. Wall Street Zen lowered shares of Ally Financial from a "buy" rating to a "hold" rating in a report on Monday, June 8th. Weiss Ratings upgraded shares of Ally Financial from a "buy (b-)" rating to a "buy (b)" rating in a research report on Tuesday, June 23rd. Finally, Bank of America increased 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 investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $53.73.

About Ally Financial

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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