Donald Smith & CO. Inc. Acquires Shares of 3,754,280 Ally Financial Inc. $ALLY

Key Points

• Donald Smith & CO. Inc. acquired 3,754,280 Ally Financial shares worth approximately $172.5 million, making Ally 3.1% of its portfolio and its 12th-largest holding. Institutional investors collectively own 88.76% of the stock.
• Ally Financial reported quarterly revenue of $2.28 billion, up 9.8% year over year, though earnings per share of $1.21 narrowly missed analysts’ $1.22 estimate. The company also declared a $0.30 quarterly dividend, equivalent to a 2.8% annual yield.
• Analysts remain generally positive, with 14 Buy ratings and two Holds producing a consensus “Moderate Buy” rating and an average price target of $53.64, above the reported share price of $42.96.

Donald Smith & CO. Inc. acquired a new position in shares of Ally Financial Inc. (NYSE:ALLY - Free Report) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor acquired 3,754,280 shares of the financial services provider's stock, valued at approximately $172,509,000. Ally Financial accounts for 3.1% of Donald Smith & CO. Inc.'s portfolio, making the stock its 12th largest position. Donald Smith & CO. Inc. owned about 1.23% of Ally Financial at the end of the most recent quarter.

Several other large investors have also recently made changes to their positions in ALLY. Royal Bank of Canada grew its holdings in shares of Ally Financial by 106.5% during the first quarter. Royal Bank of Canada now owns 251,123 shares of the financial services provider's stock worth $9,158,000 after buying an additional 129,497 shares in the last quarter. NewEdge Advisors LLC increased its holdings in shares of Ally Financial by 22.8% during the 1st quarter. NewEdge Advisors LLC now owns 2,235 shares of the financial services provider's stock worth $82,000 after buying an additional 415 shares during the last quarter. Empowered Funds LLC raised its position in Ally Financial by 11.1% in the first quarter. Empowered Funds LLC now owns 12,900 shares of the financial services provider's stock valued at $470,000 after purchasing an additional 1,292 shares during the period. Focus Partners Wealth purchased a new stake in Ally Financial in the 1st quarter valued at about $259,000. Finally, EverSource Wealth Advisors LLC raised its stake in shares of Ally Financial by 374.9% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,477 shares of the financial services provider's stock valued at $58,000 after acquiring an additional 1,166 shares during the period. 88.76% of the stock is currently owned by hedge funds and other institutional investors.

Ally Financial Trading Up 1.6%

NYSE ALLY opened at $42.96 on Friday. The firm's fifty day moving average is $44.82 and its two-hundred day moving average is $42.63. The company has a debt-to-equity ratio of 1.26, a quick ratio of 0.92 and a current ratio of 0.92. The firm has a market cap of $13.07 billion, a PE ratio of 10.13, a P/E/G ratio of 0.26 and a beta of 1.10. Ally Financial Inc. has a one year low of $35.92 and a one year high of $47.29.

Ally Financial (NYSE:ALLY - Get Free Report) last posted its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $1.21 earnings per share 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 analyst estimates of $2.22 billion. Ally Financial had a return on equity of 11.75% and a net margin of 16.75%.The firm's revenue was up 9.8% compared to the same quarter last year. During the same period in the previous year, the business posted $0.99 earnings per share. Analysts expect that Ally Financial Inc. will post 5.19 earnings per share for the current year.

Ally Financial Announces Dividend

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

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on ALLY shares. Truist Financial decreased their target price on Ally Financial from $54.00 to $51.00 and set a "buy" rating on the stock in a research note on Tuesday, August 4th. Weiss Ratings raised Ally Financial from a "buy (b-)" rating to a "buy (b)" rating in a research note on Tuesday, June 23rd. Citigroup dropped their price objective on shares of Ally Financial from $70.00 to $58.00 and set a "buy" rating on the stock in a research report on Tuesday, June 23rd. Bank of America boosted their target price on shares of Ally Financial from $52.00 to $53.00 and gave the stock a "buy" rating in a research note on Wednesday, July 8th. Finally, Wells Fargo & Company increased their target price on Ally Financial from $52.00 to $55.00 and gave the company an "overweight" rating in a report on Friday, June 26th. Fourteen investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, Ally Financial presently has a consensus rating of "Moderate Buy" and an average price target of $53.64.

Insider Activity at Ally Financial

In other Ally Financial news, insider Stephanie N. Richard sold 5,000 shares of the business's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $44.23, for a total transaction of $221,150.00. Following the sale, the insider directly owned 88,927 shares in the company, valued at approximately $3,933,241.21. The trade was a 5.32% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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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