Canada Pension Plan Investment Board Takes Position in Ally Financial Inc. $ALLY

Key Points

• Canada Pension Plan Investment Board bought 1.69 million Ally Financial shares worth approximately $77.8 million, acquiring a 0.56% stake. Institutional investors collectively own 88.76% of the company.
• Ally reported quarterly revenue of $2.28 billion, up 9.8% year over year and above estimates, while EPS of $1.21 narrowly missed the $1.22 consensus forecast.
• The company pays a quarterly dividend of $0.30 per share, equivalent to a 2.8% yield. Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus rating and an average price target of $53.64.

Canada Pension Plan Investment Board purchased a new stake in Ally Financial Inc. (NYSE:ALLY - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 1,692,097 shares of the financial services provider's stock, valued at approximately $77,752,000. Canada Pension Plan Investment Board owned approximately 0.56% of Ally Financial as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Lakewood Capital Management LP acquired a new stake in Ally Financial during the 2nd quarter valued at $80,817,000. Legal & General Group Plc acquired a new stake in shares of Ally Financial in the second quarter worth $20,715,000. The Manufacturers Life Insurance Company acquired a new stake in shares of Ally Financial in the second quarter worth $9,378,000. Trajan Wealth LLC purchased a new position in shares of Ally Financial during the second quarter valued at $259,000. Finally, Trail Ridge Investment Advisors LLC purchased a new position in shares of Ally Financial during the second quarter valued at $712,000. Institutional investors and hedge funds own 88.76% of the company's stock.

Ally Financial Price Performance

Shares of NYSE:ALLY opened at $42.58 on Thursday. 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 Inc. has a 1 year low of $35.92 and a 1 year high of $47.29. The business has a fifty day simple moving average of $44.64 and a 200 day simple moving average of $42.63. The firm has a market cap of $12.95 billion, a price-to-earnings ratio of 10.04, a P/E/G ratio of 0.26 and a beta of 1.10.

Ally Financial (NYSE:ALLY - Get Free Report) last released its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $1.21 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.22 by ($0.01). Ally Financial had a net margin of 16.75% and a return on equity of 11.75%. The firm had revenue of $2.28 billion for the quarter, compared to analyst estimates of $2.22 billion. During the same period in the previous year, the business posted $0.99 EPS. Ally Financial's revenue for the quarter was up 9.8% on a year-over-year basis. As a group, sell-side analysts predict that Ally Financial Inc. will post 5.19 earnings per share for the current fiscal year.

Ally Financial Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Friday, July 31st were issued a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 2.8%. The ex-dividend date was Friday, July 31st. Ally Financial's payout ratio is currently 28.30%.

Wall Street Analysts Forecast Growth

ALLY has been the subject of several research analyst reports. Truist Financial reduced their price objective on Ally Financial from $54.00 to $51.00 and set a "buy" rating for the company in a research note on Tuesday, August 4th. Royal Bank Of Canada lifted their target price on Ally Financial from $52.00 to $55.00 and gave the company an "outperform" rating in a research note on Friday, July 10th. Weiss Ratings upgraded Ally Financial from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday, June 23rd. Wall Street Zen lowered shares of Ally Financial from a "buy" rating to a "hold" rating in a research report on Monday, June 8th. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $58.00 price target on shares of Ally Financial in a report on Wednesday, July 22nd. Fourteen analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, Ally Financial currently has a consensus rating of "Moderate Buy" and a consensus price target of $53.64.

Insider Activity at Ally Financial

In related news, insider Stephanie N. Richard sold 5,000 shares of the business's stock in a transaction that occurred 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 completion of the sale, the insider owned 88,927 shares of the company's stock, valued at approximately $3,933,241.21. The trade was a 5.32% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 0.46% of the company's stock.

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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