Oak Thistle LLC Reduces Position in Ally Financial Inc. $ALLY

Key Points

• Oak Thistle LLC cut its stake in Ally Financial by 50.2% in Q4, selling 36,786 shares and ending the period with 36,534 shares worth about $1.655 million.
• Ally authorized a $2.0 billion share buyback (up to 15.3% of shares) and company insiders boosted their holdings—CEO Michael Rhodes bought 23,800 shares and CFO Russell Hutchinson bought 11,566 shares—signaling management confidence.
• Ally posted a Q4 earnings beat (EPS $1.09 vs. $1.01 consensus) and carries a consensus analyst rating of "Moderate Buy" with an average price target of about $53.54.

Oak Thistle LLC lessened its holdings in shares of Ally Financial Inc. (NYSE:ALLY - Free Report) by 50.2% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 36,534 shares of the financial services provider's stock after selling 36,786 shares during the period. Oak Thistle LLC's holdings in Ally Financial were worth $1,655,000 at the end of the most recent reporting period.

Other large investors have also recently modified their holdings of the company. Mather Group LLC. purchased a new stake in shares of Ally Financial in the third quarter valued at approximately $31,000. Larson Financial Group LLC boosted its holdings in shares of Ally Financial by 67.0% in the third quarter. Larson Financial Group LLC now owns 1,072 shares of the financial services provider's stock valued at $42,000 after purchasing an additional 430 shares during the period. Smartleaf Asset Management LLC boosted its holdings in shares of Ally Financial by 98.7% in the third quarter. Smartleaf Asset Management LLC now owns 1,111 shares of the financial services provider's stock valued at $44,000 after purchasing an additional 552 shares during the period. Allworth Financial LP boosted its holdings in shares of Ally Financial by 53.5% in the third quarter. Allworth Financial LP now owns 1,154 shares of the financial services provider's stock valued at $45,000 after purchasing an additional 402 shares during the period. Finally, Bessemer Group Inc. boosted its holdings in shares of Ally Financial by 33.5% in 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.

Analysts Set New Price Targets

A number of analysts recently issued reports on ALLY shares. BTIG Research reiterated a "neutral" rating on shares of Ally Financial in a report on Tuesday, January 6th. JPMorgan Chase & Co. boosted their price target on Ally Financial from $43.00 to $48.00 and gave the company an "overweight" rating in a report on Monday, January 12th. Weiss Ratings lowered Ally Financial from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, February 26th. Morgan Stanley set a $53.00 price target on Ally Financial and gave the company an "overweight" rating in a report on Tuesday, December 16th. Finally, Royal Bank Of Canada reiterated an "outperform" rating and issued a $52.00 price target on shares of Ally Financial in a report on Monday, January 12th. Eleven equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, Ally Financial has an average rating of "Moderate Buy" and a consensus target price of $53.54.

Ally Financial Stock Up 3.5%

Ally Financial stock opened at $41.72 on Thursday. The business has a fifty day moving average of $40.03 and a two-hundred day moving average of $41.22. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 1.30. The firm has a market cap of $12.84 billion, a P/E ratio of 17.75, a P/E/G ratio of 0.20 and a beta of 1.14. Ally Financial Inc. has a twelve month low of $29.52 and a twelve month high of $47.27.

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

Ally Financial Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, February 17th. Shareholders of record on Monday, February 2nd were issued a dividend of $0.30 per share. The ex-dividend date was Monday, February 2nd. This represents a $1.20 dividend on an annualized basis and a yield of 2.9%. Ally Financial's dividend payout ratio is currently 51.06%.

Ally Financial declared that its Board of Directors has initiated a share repurchase program on Wednesday, December 10th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the financial services provider to repurchase up to 15.3% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's management believes its stock is undervalued.

Insiders Place Their Bets

In related news, CEO Michael George Rhodes bought 23,800 shares of the stock in a transaction on Friday, January 23rd. The stock was bought at an average price of $41.68 per share, for a total transaction of $991,984.00. Following the completion of the acquisition, the chief executive officer directly owned 49,434 shares in the company, valued at approximately $2,060,409.12. This represents a 92.85% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, 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 acquisition, the chief financial officer owned 225,336 shares of the company's stock, valued at $9,727,755.12. This trade represents a 5.41% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.67% of the stock is owned by corporate insiders.

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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