Daytona Street Capital LLC Purchases Shares of 74,655 Ally Financial Inc. $ALLY

Key Points

• Daytona Street Capital bought a new stake of 74,655 shares of Ally Financial (NYSE:ALLY) in Q4, worth about $3.38 million and representing roughly 2.3% of Daytona's holdings (its 9th-largest position).
• Insiders increased exposure in January: CFO Russell Hutchinson bought 11,566 shares at about $43.17 and CEO Michael Rhodes bought 23,800 shares at about $41.68, bringing insider ownership to 0.67%.
• Ally beat Q4 EPS estimates ($1.09 vs. $1.01), announced a $2.0 billion share buyback authorization (up to 15.3% of shares), pays a $0.30 quarterly dividend (≈3% yield), and carries a consensus analyst rating of "Moderate Buy" with a $53.54 target.

Daytona Street Capital LLC purchased a new stake in Ally Financial Inc. (NYSE:ALLY - Free Report) during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 74,655 shares of the financial services provider's stock, valued at approximately $3,381,000. Ally Financial makes up about 2.3% of Daytona Street Capital LLC's holdings, making the stock its 9th largest position.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the business. Wellington Management Group LLP raised its stake in Ally Financial by 19.6% in the third quarter. Wellington Management Group LLP now owns 11,938,680 shares of the financial services provider's stock valued at $467,996,000 after buying an additional 1,958,201 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in shares of Ally Financial by 4.2% during the third quarter. Arrowstreet Capital Limited Partnership now owns 5,626,748 shares of the financial services provider's stock worth $220,569,000 after purchasing an additional 226,188 shares during the last quarter. Bank of America Corp DE grew its holdings in shares of Ally Financial by 38.9% during the second quarter. Bank of America Corp DE now owns 3,771,190 shares of the financial services provider's stock worth $146,888,000 after purchasing an additional 1,056,060 shares during the last quarter. American Century Companies Inc. grew its holdings in shares of Ally Financial by 30.9% during the third quarter. American Century Companies Inc. now owns 2,251,925 shares of the financial services provider's stock worth $88,276,000 after purchasing an additional 531,269 shares during the last quarter. Finally, Employees Retirement System of Texas grew its holdings in shares of Ally Financial by 18.3% during the third quarter. Employees Retirement System of Texas now owns 1,696,646 shares of the financial services provider's stock worth $66,509,000 after purchasing an additional 262,563 shares during the last quarter. 88.76% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at Ally Financial

In related news, CFO Russell E. Hutchinson purchased 11,566 shares of the stock in a transaction that occurred on Tuesday, January 27th. The shares were purchased at an average price of $43.17 per share, with a total value of $499,304.22. Following the completion of the acquisition, the chief financial officer directly owned 225,336 shares in the company, valued at $9,727,755.12. This represents a 5.41% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Michael George Rhodes purchased 23,800 shares of the stock in a transaction that occurred on Friday, January 23rd. The shares were bought at an average cost of $41.68 per share, for a total transaction of $991,984.00. Following the acquisition, the chief executive officer 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. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 0.67% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on ALLY shares. Deutsche Bank Aktiengesellschaft raised their price objective on Ally Financial from $55.00 to $57.00 and gave the stock a "buy" rating in a report on Thursday, January 22nd. BTIG Research reaffirmed a "neutral" rating on shares of Ally Financial in a report on Tuesday, January 6th. JPMorgan Chase & Co. raised their price objective on Ally Financial from $43.00 to $48.00 and gave the stock an "overweight" rating in a report on Monday, January 12th. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $55.00 price objective on shares of Ally Financial in a report on Tuesday, January 6th. Finally, Weiss Ratings lowered Ally Financial from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, February 26th. Eleven research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $53.54.

Ally Financial Stock Performance

NYSE ALLY opened at $40.29 on Tuesday. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 1.30. Ally Financial Inc. has a 52-week low of $29.52 and a 52-week high of $47.27. The business's 50-day moving average price is $40.09 and its 200 day moving average price is $41.24. The firm has a market cap of $12.40 billion, a P/E ratio of 17.14, a P/E/G ratio of 0.20 and a beta of 1.14.

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

Ally Financial announced that its Board of Directors has authorized a share buyback plan on Wednesday, December 10th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to reacquire up to 15.3% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's management believes its shares are undervalued.

Ally Financial Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, February 17th. Investors of record on Monday, February 2nd were issued a dividend of $0.30 per share. 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 3.0%. Ally Financial's dividend payout ratio (DPR) is currently 51.06%.

About Ally Financial

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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