WINTON GROUP Ltd Buys Shares of 87,009 Ally Financial Inc. $ALLY

Key Points

• WINTON GROUP Ltd established a new position in Ally Financial by purchasing 87,009 shares in Q3, worth about $3.41 million.
• Insiders increased exposure: CEO Michael George Rhodes bought 23,800 shares (~$991,984) and CFO Russell E. Hutchinson bought 11,566 shares (~$499,304), materially raising their ownership stakes.
• Ally beat Q4 expectations, its board authorized a $2.0 billion share buyback (up to 15.3% of shares), and the company pays a $0.30 quarterly dividend (≈3.2% yield).

WINTON GROUP Ltd purchased a new position in shares of Ally Financial Inc. (NYSE:ALLY - Free Report) in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 87,009 shares of the financial services provider's stock, valued at approximately $3,411,000.

Other hedge funds also recently modified their holdings of the company. Allworth Financial LP grew its stake in shares of Ally Financial by 385.2% in the second quarter. Allworth Financial LP now owns 752 shares of the financial services provider's stock worth $29,000 after acquiring an additional 597 shares during the last quarter. Mather Group LLC. bought a new position in Ally Financial during the third quarter worth $31,000. MAI Capital Management raised its stake in Ally Financial by 45.1% during the 2nd quarter. MAI Capital Management now owns 975 shares of the financial services provider's stock valued at $38,000 after purchasing an additional 303 shares during the last quarter. Smartleaf Asset Management LLC boosted its holdings in Ally Financial by 98.7% in the 3rd 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. Finally, Bessemer Group Inc. boosted its holdings in Ally Financial by 33.5% in the 3rd 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. 88.76% of the stock is owned by institutional investors.

Insider Activity at Ally Financial

In related news, CEO Michael George Rhodes purchased 23,800 shares of the firm's stock in a transaction that occurred on Friday, January 23rd. The shares were acquired at an average price 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. This represents a 92.85% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CFO Russell E. Hutchinson purchased 11,566 shares of the stock in a transaction on Tuesday, January 27th. The stock was bought 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 of the company's stock, valued at approximately $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. Corporate insiders own 0.56% of the company's stock.

Ally Financial Price Performance

NYSE:ALLY opened at $37.45 on Wednesday. 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 company has a 50-day moving average of $42.34 and a 200-day moving average of $41.70. Ally Financial Inc. has a 52 week low of $29.52 and a 52 week high of $47.27. The company has a market capitalization of $11.58 billion, a price-to-earnings ratio of 15.94, a PEG ratio of 0.20 and a beta of 1.18.

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, beating analysts' consensus estimates of $1.01 by $0.08. Ally Financial had a net margin of 10.77% and a return on equity of 10.40%. The business had revenue of $2.17 billion for the quarter, compared to analysts' expectations of $2.15 billion. During the same quarter in the previous year, the firm posted $0.78 earnings per share. The firm's revenue for the quarter was up 4.8% on a year-over-year basis. As a group, equities research analysts anticipate that Ally Financial Inc. will post 3.57 earnings per share for the current fiscal year.

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

Ally Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, February 17th. Stockholders of record on Monday, February 2nd were paid a $0.30 dividend. 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 dividend payout ratio is currently 51.06%.

Wall Street Analyst Weigh In

Several research firms have issued reports on ALLY. Royal Bank Of Canada restated an "outperform" rating and set a $52.00 price objective on shares of Ally Financial in a report on Monday, January 12th. TD Cowen reiterated a "buy" rating on shares of Ally Financial in a research note on Thursday, January 8th. The Goldman Sachs Group reissued a "neutral" rating and set a $55.00 target price on shares of Ally Financial in a research report on Tuesday, January 6th. BTIG Research restated a "neutral" rating on shares of Ally Financial in a research note on Tuesday, January 6th. Finally, Weiss Ratings cut Ally Financial from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, February 26th. Thirteen equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $50.31.

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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