Hsbc Holdings PLC Invests $3.40 Million in Ally Financial Inc. $ALLY

Key Points

• Hsbc Holdings PLC acquired 73,390 Ally Financial shares during the second quarter, valued at approximately $3.4 million. Institutional investors collectively own 88.76% of Ally’s stock.
• Analysts remain broadly positive, with 14 Buy ratings and two Holds, resulting in a “Moderate Buy” consensus and an average price target of $53.64.
• Ally reported quarterly revenue of $2.28 billion, up 9.8% year over year, though earnings of $1.21 per share narrowly missed estimates. The company also paid a quarterly dividend of $0.30 per share, representing a 2.8% annualized yield.

Hsbc Holdings PLC acquired a new position in Ally Financial Inc. (NYSE:ALLY - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 73,390 shares of the financial services provider's stock, valued at approximately $3,405,000.

Other institutional investors have also added to or reduced their stakes in the company. Trust Co. of Vermont purchased a new position in shares of Ally Financial during the 2nd quarter worth $36,000. Fideuram Asset Management Ireland dac purchased a new stake in shares of Ally Financial in the 4th quarter worth $35,000. Safe Harbor Fiduciary LLC bought a new position in Ally Financial in the 4th quarter worth $37,000. Harvest Fund Management Co. Ltd bought a new position in Ally Financial in the 4th quarter worth $38,000. Finally, CIBC Private Wealth Group LLC lifted its position in Ally Financial by 805.1% during the fourth quarter. CIBC Private Wealth Group LLC now owns 896 shares of the financial services provider's stock valued at $41,000 after purchasing an additional 797 shares in the last quarter. 88.76% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

ALLY has been the subject of a number of analyst reports. Weiss Ratings upgraded Ally Financial from a "buy (b-)" rating to a "buy (b)" rating in a research report on Tuesday, June 23rd. Bank of America lifted their price objective on Ally Financial from $52.00 to $53.00 and gave the company a "buy" rating in a research report on Wednesday, July 8th. Citigroup cut their price objective on Ally Financial from $70.00 to $58.00 and set a "buy" rating for the company in a research note on Tuesday, June 23rd. Wells Fargo & Company increased their target price on shares of Ally Financial from $52.00 to $55.00 and gave the stock an "overweight" rating in a report on Friday, June 26th. Finally, 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 report on Friday, July 10th. Fourteen research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $53.64.

Ally Financial Stock Performance

ALLY opened at $42.20 on Friday. 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 stock has a market capitalization of $12.84 billion, a price-to-earnings ratio of 9.95, a PEG ratio of 0.26 and a beta of 1.10. The company has a fifty day moving average of $44.52 and a 200 day moving average of $42.63. Ally Financial Inc. has a fifty-two week low of $35.92 and a fifty-two week high of $47.29.

Ally Financial (NYSE:ALLY - Get Free Report) last announced its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $1.21 EPS for the quarter, missing the consensus estimate of $1.22 by ($0.01). The company had revenue of $2.28 billion during 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 firm's revenue for the quarter was up 9.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.99 EPS. As a group, sell-side analysts forecast that Ally Financial Inc. will post 5.19 earnings per share for the current fiscal year.

Ally Financial Announces Dividend

The company also recently disclosed 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 of this dividend was Friday, July 31st. Ally Financial's dividend payout ratio is 28.30%.

Insider Activity

In other news, insider Stephanie N. Richard sold 5,000 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $44.23, for a total transaction of $221,150.00. Following the completion of the transaction, the insider directly owned 88,927 shares in the company, valued at approximately $3,933,241.21. This represents a 5.32% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.46% of the stock is owned by company 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.

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