Wedge Capital Management L L P NC Sells 244,635 Shares of Ally Financial Inc. $ALLY

Key Points

• Wedge Capital trimmed its stake in Ally by 21.8% in Q4, selling 244,635 shares and leaving 876,551 shares (about 0.28% of the company) valued at roughly $39.7 million.
• Insider buying: CEO Michael George Rhodes purchased 23,800 shares at $41.68 and CFO Russell Hutchinson bought 11,566 shares at $43.17, increasing insider ownership to about 0.67% and signaling management confidence.
• Ally beat Q4 EPS expectations ($1.09 vs. $1.01), the board authorized a $2.00 billion share repurchase (up to 15.3% of shares), and the company pays a $0.30 quarterly dividend (≈3.2% yield); analysts have a consensus "Moderate Buy" target of $51.67.

Wedge Capital Management L L P NC trimmed its holdings in Ally Financial Inc. (NYSE:ALLY - Free Report) by 21.8% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 876,551 shares of the financial services provider's stock after selling 244,635 shares during the quarter. Wedge Capital Management L L P NC owned about 0.28% of Ally Financial worth $39,699,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also added to or reduced their stakes in the stock. Royal Bank of Canada raised its stake in shares of Ally Financial by 106.5% in the first quarter. Royal Bank of Canada now owns 251,123 shares of the financial services provider's stock worth $9,158,000 after acquiring an additional 129,497 shares during the last quarter. NewEdge Advisors LLC grew its stake in shares of Ally Financial by 22.8% during the first quarter. NewEdge Advisors LLC now owns 2,235 shares of the financial services provider's stock valued at $82,000 after purchasing an additional 415 shares during the last quarter. Empowered Funds LLC increased its holdings in shares of 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 in the last quarter. Focus Partners Wealth acquired a new stake in shares of Ally Financial in the first quarter valued at approximately $259,000. Finally, MAI Capital Management raised its position in Ally Financial by 45.1% in the 2nd quarter. MAI Capital Management now owns 975 shares of the financial services provider's stock worth $38,000 after purchasing an additional 303 shares during the last quarter. Institutional investors and hedge funds own 88.76% of the company's stock.

Insider Activity

In related news, CEO Michael George Rhodes purchased 23,800 shares of the stock in a transaction dated Friday, January 23rd. The stock was bought at an average cost of $41.68 per share, with a total value of $991,984.00. Following the purchase, the chief executive officer directly owned 49,434 shares in the company, valued at $2,060,409.12. The trade was a 92.85% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Russell E. Hutchinson purchased 11,566 shares of the business's stock in a transaction that occurred on Tuesday, January 27th. The stock was purchased at an average price of $43.17 per share, for a total transaction of $499,304.22. Following the completion of the transaction, the chief financial officer directly owned 225,336 shares in the company, valued at $9,727,755.12. This trade represents a 5.41% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.67% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the company. Morgan Stanley set a $53.00 price objective on Ally Financial and gave the company an "overweight" rating in a research report on Tuesday, December 16th. Wells Fargo & Company upgraded Ally Financial from a "hold" rating to an "overweight" rating in a research report on Wednesday, December 17th. Evercore cut their price target on Ally Financial from $53.00 to $51.00 and set an "outperform" rating on the stock in a research note on Thursday, February 5th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $52.00 price objective on shares of Ally Financial in a research report on Monday, January 12th. Finally, TD Cowen reissued a "buy" rating on shares of Ally Financial in a report on Thursday, January 8th. Thirteen investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $51.67.

Ally Financial Stock Performance

Shares of Ally Financial stock opened at $37.82 on Friday. The firm has a fifty day moving average of $40.43 and a two-hundred day moving average of $41.40. The company has a debt-to-equity ratio of 1.30, a quick ratio of 0.92 and a current ratio of 0.92. The stock has a market capitalization of $11.65 billion, a price-to-earnings ratio of 16.09, a PEG ratio of 0.20 and a beta of 1.18. Ally Financial Inc. has a 52 week low of $29.52 and a 52 week high of $47.27.

Ally Financial (NYSE:ALLY - Get Free Report) last announced its quarterly earnings data on Wednesday, January 21st. The financial services provider reported $1.09 EPS for the quarter, topping analysts' consensus estimates of $1.01 by $0.08. The business had revenue of $2.17 billion during the quarter, compared to analysts' expectations of $2.15 billion. Ally Financial had a return on equity of 10.40% and a net margin of 10.77%.The firm's quarterly revenue was up 4.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.78 earnings per share. As a group, equities research analysts predict that Ally Financial Inc. will post 3.57 EPS for the current year.

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

Ally Financial Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, February 17th. Stockholders of record on Monday, February 2nd were given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 3.2%. The ex-dividend date was Monday, February 2nd. Ally Financial's payout ratio is presently 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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