Wellington Management Group LLP Buys New Shares in Ally Financial Inc. $ALLY

Key Points

• Wellington Management Group LLP has acquired a significant stake in Ally Financial Inc., purchasing approximately $253.88 million worth of shares, equating to about 2.27% of the company.
• Analysts have shown confidence in Ally Financial, with multiple firms increasing their price targets, including Morgan Stanley raising its target to $47.00, reflecting a positive outlook.
• Ally Financial recently declared a quarterly dividend of $0.30 per share, providing an annualized dividend yield of 3.1%, highlighting the company's commitment to returning value to shareholders.

Wellington Management Group LLP bought a new position in Ally Financial Inc. (NYSE:ALLY - Free Report) in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 6,961,375 shares of the financial services provider's stock, valued at approximately $253,881,000. Wellington Management Group LLP owned 2.27% of Ally Financial at the end of the most recent reporting period.

Other institutional investors have also recently added to or reduced their stakes in the company. Copia Wealth Management acquired a new stake in Ally Financial in the first quarter worth approximately $27,000. Private Trust Co. NA lifted its position in Ally Financial by 125.7% in the first quarter. Private Trust Co. NA now owns 914 shares of the financial services provider's stock worth $33,000 after purchasing an additional 509 shares during the period. Bessemer Group Inc. lifted its position in Ally Financial by 59.6% in the first quarter. Bessemer Group Inc. now owns 1,010 shares of the financial services provider's stock worth $37,000 after purchasing an additional 377 shares during the period. Zions Bancorporation National Association UT acquired a new stake in Ally Financial in the first quarter worth approximately $74,000. Finally, Fifth Third Bancorp lifted its position in Ally Financial by 22.3% in the first quarter. Fifth Third Bancorp now owns 2,519 shares of the financial services provider's stock worth $92,000 after purchasing an additional 459 shares during the period. 88.76% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on ALLY. Citigroup reiterated a "buy" rating and set a $59.00 price objective (up previously from $55.00) on shares of Ally Financial in a research report on Wednesday, July 2nd. BTIG Research upgraded Ally Financial from a "sell" rating to a "neutral" rating in a research report on Monday, July 14th. Royal Bank Of Canada reiterated an "outperform" rating on shares of Ally Financial in a research report on Monday, July 14th. Morgan Stanley reissued an "overweight" rating and set a $47.00 target price (up from $39.00) on shares of Ally Financial in a research note on Thursday, July 10th. Finally, Truist Financial boosted their target price on shares of Ally Financial from $44.00 to $45.00 and gave the company a "buy" rating in a research note on Thursday, July 24th. Nine analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $42.80.

Ally Financial Stock Up 5.6%

Shares of NYSE ALLY traded up $2.1340 during mid-day trading on Friday, reaching $40.5840. The company had a trading volume of 4,047,447 shares, compared to its average volume of 2,574,434. Ally Financial Inc. has a twelve month low of $29.52 and a twelve month high of $43.86. 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 $12.49 billion, a PE ratio of 26.35, a price-to-earnings-growth ratio of 0.30 and a beta of 1.16. The stock's 50 day moving average is $38.70 and its 200-day moving average is $36.29.

Ally Financial (NYSE:ALLY - Get Free Report) last posted its quarterly earnings results on Friday, July 18th. The financial services provider reported $0.99 earnings per share for the quarter, topping analysts' consensus estimates of $0.78 by $0.21. Ally Financial had a net margin of 7.64% and a return on equity of 9.48%. The business had revenue of $2.08 billion for the quarter, compared to the consensus estimate of $2.03 billion. During the same period in the prior year, the business posted $0.97 earnings per share. Ally Financial's revenue for the quarter was up 3.0% compared to the same quarter last year. As a group, equities analysts anticipate that Ally Financial Inc. will post 3.57 earnings per share for the current fiscal year.

Ally Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 15th. Shareholders of record on Friday, August 1st were given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend was Friday, August 1st. Ally Financial's dividend payout ratio is presently 77.92%.

About Ally Financial

Ally Financial Inc, a digital financial-services company, provides various digital financial products and services in the United States, Canada, and Bermuda. The company operates through Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations segments.