Ceredex Value Advisors LLC Trims Holdings in Ally Financial Inc. $ALLY

Key Points

• Ceredex Value Advisors trimmed its stake in Ally Financial by 11.6% in Q3, selling 48,600 shares and ending the quarter with 371,300 shares worth $14.56 million (about 0.12% of the company).
• Ally beat Q4 expectations with $1.09 EPS (vs. $1.01 consensus), announced a $2.0 billion share buyback program (up to 15.3% of shares), and pays a $0.30 quarterly dividend (≈3.1% yield).
• Analyst sentiment is positive (13 Buys vs. 4 Holds, average price target $50.31 — Moderate Buy), and insiders including the CFO and CEO have recently bought shares, raising insider ownership to about 0.56%.

Ceredex Value Advisors LLC decreased its position in shares of Ally Financial Inc. (NYSE:ALLY - Free Report) by 11.6% in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 371,300 shares of the financial services provider's stock after selling 48,600 shares during the quarter. Ceredex Value Advisors LLC owned 0.12% of Ally Financial worth $14,555,000 as of its most recent SEC filing.

A number of other large investors have also recently bought and sold shares of the company. Allworth Financial LP lifted its stake in Ally Financial by 385.2% during the 2nd quarter. Allworth Financial LP now owns 752 shares of the financial services provider's stock valued at $29,000 after acquiring an additional 597 shares during the period. Mather Group LLC. acquired a new stake in shares of Ally Financial in the third quarter worth $31,000. MAI Capital Management increased its stake in shares of Ally Financial by 45.1% in the second quarter. MAI Capital Management now owns 975 shares of the financial services provider's stock worth $38,000 after acquiring an additional 303 shares during the period. Smartleaf Asset Management LLC raised its holdings in shares of Ally Financial by 98.7% during the third quarter. Smartleaf Asset Management LLC now owns 1,111 shares of the financial services provider's stock worth $44,000 after purchasing an additional 552 shares during the last quarter. Finally, Bessemer Group Inc. lifted its position in Ally Financial by 33.5% during the third quarter. Bessemer Group Inc. now owns 1,234 shares of the financial services provider's stock valued at $49,000 after purchasing an additional 310 shares during the period. Hedge funds and other institutional investors own 88.76% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the company. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $52.00 price target on shares of Ally Financial in a research report on Monday, January 12th. The Goldman Sachs Group reissued a "neutral" rating and issued a $55.00 price objective on shares of Ally Financial in a report on Tuesday, January 6th. TD Cowen restated a "buy" rating on shares of Ally Financial in a research note on Thursday, January 8th. Wells Fargo & Company upgraded Ally Financial from a "hold" rating to an "overweight" rating in a research report on Wednesday, December 17th. Finally, Deutsche Bank Aktiengesellschaft boosted their price target on Ally Financial from $55.00 to $57.00 and gave the company a "buy" rating in a report on Thursday, January 22nd. Thirteen equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $50.31.

Ally Financial Stock Up 0.9%

Ally Financial stock opened at $38.43 on Tuesday. The stock has a market capitalization of $11.88 billion, a PE ratio of 16.35, a price-to-earnings-growth ratio of 0.19 and a beta of 1.19. The business has a 50 day simple moving average of $42.50 and a 200-day simple moving average of $41.72. The company has a debt-to-equity ratio of 1.30, a current ratio of 0.92 and a quick ratio of 0.92. Ally Financial Inc. has a 12 month low of $29.52 and a 12 month high of $47.27.

Ally Financial (NYSE:ALLY - Get Free Report) last posted its quarterly earnings data on Wednesday, January 21st. The financial services provider reported $1.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.01 by $0.08. Ally Financial had a net margin of 10.77% and a return on equity of 10.40%. The business had revenue of $2.17 billion for the quarter, compared to the consensus estimate of $2.15 billion. During the same period last year, the firm posted $0.78 earnings per share. The company's revenue was up 4.8% compared to the same quarter last year. On average, analysts anticipate that Ally Financial Inc. will post 3.57 EPS for the current fiscal year.

Ally Financial Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, February 17th. Stockholders of record on Monday, February 2nd were paid a $0.30 dividend. The ex-dividend date of this dividend was Monday, February 2nd. This represents a $1.20 dividend on an annualized basis and a dividend yield of 3.1%. Ally Financial's payout ratio is currently 51.06%.

Ally Financial announced that its board has approved a share buyback plan on Wednesday, December 10th that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the financial services provider to buy up to 15.3% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's management believes its shares are undervalued.

Insider Activity at Ally Financial

In other Ally Financial news, CFO Russell E. Hutchinson bought 11,566 shares of the stock in a transaction on Tuesday, January 27th. The shares were bought at an average price of $43.17 per share, with a total value of $499,304.22. Following the purchase, the chief financial officer directly owned 225,336 shares in the company, valued at $9,727,755.12. This trade represents a 5.41% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Michael George Rhodes bought 23,800 shares of Ally Financial stock in a transaction dated Friday, January 23rd. The stock was acquired at an average price of $41.68 per share, with a total value of $991,984.00. Following the completion of the transaction, the chief executive officer directly owned 49,434 shares of the company's stock, valued at approximately $2,060,409.12. The trade was a 92.85% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.56% of the stock is currently owned by insiders.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.