Lakewood Capital Management LP Makes New $80.82 Million Investment in Ally Financial Inc. $ALLY

Key Points

• Lakewood Capital Management initiated an $80.8 million Ally Financial position, buying 1.76 million shares that represented about 4.2% of its portfolio and 0.58% of Ally’s outstanding stock.
• Institutional ownership remains substantial at 88.76%, with BlackRock, Donald Smith, Norges Bank, Wellington Management, and Bank of New York Mellon among firms recently adding or increasing positions.
• Ally reported quarterly revenue of $2.28 billion, up 9.8% year over year, though EPS of $1.21 narrowly missed estimates. Analysts maintain a “Moderate Buy” consensus with an average price target of $53.64, while the company pays a $0.30 quarterly dividend yielding about 2.8%.

Lakewood Capital Management LP bought a new stake in shares of Ally Financial Inc. (NYSE:ALLY - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor bought 1,758,809 shares of the financial services provider's stock, valued at approximately $80,817,000. Ally Financial comprises approximately 4.2% of Lakewood Capital Management LP's portfolio, making the stock its 4th biggest holding. Lakewood Capital Management LP owned about 0.58% of Ally Financial at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. BlackRock Inc. purchased a new stake in Ally Financial during the second quarter valued at $1,315,659,000. Donald Smith & CO. Inc. bought a new position in Ally Financial during the second quarter valued at $172,509,000. Norges Bank bought a new position in Ally Financial during the fourth quarter valued at $157,610,000. Wellington Management Group LLP grew its stake in shares of Ally Financial by 19.5% in the 4th quarter. Wellington Management Group LLP now owns 14,271,290 shares of the financial services provider's stock worth $646,347,000 after buying an additional 2,332,610 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in shares of Ally Financial in the 2nd quarter worth $103,930,000. 88.76% of the stock is owned by hedge funds and other institutional investors.

Ally Financial Stock Performance

Shares of NYSE:ALLY opened at $42.45 on Tuesday. The firm has a market cap of $12.91 billion, a PE ratio of 10.01, a price-to-earnings-growth ratio of 0.27 and a beta of 1.10. The firm's 50 day simple moving average is $44.76 and its 200-day simple moving average is $42.64. Ally Financial Inc. has a one year low of $35.92 and a one year high of $47.29. The company has a debt-to-equity ratio of 1.26, a quick ratio of 0.92 and a current ratio of 0.92.

Ally Financial (NYSE:ALLY - Get Free Report) last announced its quarterly earnings results 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 during the quarter, compared to analysts' expectations of $2.22 billion. During the same quarter in the previous year, the firm posted $0.99 EPS. The firm's revenue for the quarter was up 9.8% on a year-over-year basis. As a group, equities analysts predict that Ally Financial Inc. will post 5.19 EPS for the current year.

Ally Financial Dividend Announcement

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

Wall Street Analyst Weigh In

Several analysts have recently issued reports on ALLY shares. Wall Street Zen cut shares of Ally Financial from a "buy" rating to a "hold" rating in a research report on Monday, June 8th. Bank of America lifted their price target on Ally Financial from $52.00 to $53.00 and gave the stock a "buy" rating in a research report on Wednesday, July 8th. Weiss Ratings raised Ally Financial from a "buy (b-)" rating to a "buy (b)" rating in a research note on Tuesday, June 23rd. Royal Bank Of Canada upped their price objective on Ally Financial from $52.00 to $55.00 and gave the company an "outperform" rating in a research report on Friday, July 10th. Finally, Truist Financial lowered 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. Fourteen investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $53.64.

Insider Buying and Selling at Ally Financial

In other Ally Financial news, insider Stephanie N. Richard sold 5,000 shares of the company's stock in a transaction 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 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 sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.46% of the company's stock.

Ally Financial Company 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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