Investors Buy Large Volume of Call Options on Ally Financial (NYSE:ALLY)

Key Points

• Call-option activity surged in Ally Financial, with investors purchasing 34,716 calls—about 1,013% above the typical daily volume.
• Wall Street remains broadly positive, with a consensus “Moderate Buy” rating, a $53.64 average price target, and 14 Buy ratings versus two Holds.
• Ally shares rose 0.9% to $44.19. The company reported $2.28 billion in quarterly revenue, up 9.8% year over year, and declared a quarterly dividend of $0.30 per share, yielding about 2.7%.

Ally Financial Inc. (NYSE:ALLY - Get Free Report) was the target of unusually large options trading activity on Tuesday. Stock traders acquired 34,716 call options on the stock. This is an increase of approximately 1,013% compared to the typical daily volume of 3,120 call options.

Insider Transactions at Ally Financial

In other Ally Financial news, insider Stephanie N. Richard sold 5,000 shares of the company's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $44.23, for a total value of $221,150.00. Following the completion of the sale, the insider owned 88,927 shares of the company's stock, valued at approximately $3,933,241.21. This represents a 5.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.46% of the company's stock.

Hedge Funds Weigh In On Ally Financial

A number of large investors have recently modified their holdings of the business. Mirae Asset Global Investments Co. Ltd. bought a new position in Ally Financial in the fourth quarter valued at approximately $29,000. Trust Co. of Vermont acquired a new stake in shares of Ally Financial in the 2nd quarter valued at approximately $36,000. Fideuram Asset Management Ireland dac acquired a new stake in shares of Ally Financial in the 4th quarter valued at approximately $35,000. Safe Harbor Fiduciary LLC bought a new position in shares of Ally Financial in the fourth quarter valued at $37,000. Finally, Harvest Fund Management Co. Ltd bought a new position in shares of Ally Financial in the fourth quarter valued at $38,000. 88.76% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several brokerages recently commented on ALLY. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $58.00 price objective on shares of Ally Financial in a research note on Wednesday, July 22nd. Weiss Ratings upgraded Ally Financial from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday, June 23rd. Barclays raised their price target on Ally Financial from $54.00 to $56.00 and gave the stock an "equal weight" rating in a research report on Monday, April 20th. Morgan Stanley lifted their price objective on Ally Financial from $53.00 to $55.00 and gave the company an "overweight" rating in a report on Monday, April 20th. Finally, Wells Fargo & Company boosted their price objective on Ally Financial from $52.00 to $55.00 and gave the company an "overweight" rating in a research report on Friday, June 26th. Fourteen investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, Ally Financial presently has a consensus rating of "Moderate Buy" and an average price target of $53.64.

Ally Financial Stock Up 0.9%

Shares of NYSE:ALLY traded up $0.40 during mid-day trading on Tuesday, reaching $44.19. 519,986 shares of the stock were exchanged, compared to its average volume of 3,511,523. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 1.26. The company has a market cap of $13.44 billion, a P/E ratio of 10.43, a P/E/G ratio of 0.27 and a beta of 1.10. Ally Financial has a one year low of $35.92 and a one year high of $47.29. The stock's 50 day simple moving average is $44.63 and its 200-day simple moving average is $42.54.

Ally Financial (NYSE:ALLY - Get Free Report) last released its earnings results on Tuesday, July 21st. The financial services provider reported $1.21 EPS for the quarter, missing the consensus estimate 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 the consensus estimate of $2.22 billion. During the same quarter in the previous year, the firm posted $0.99 EPS. The company's revenue was up 9.8% on a year-over-year basis. As a group, equities research analysts predict that Ally Financial will post 5.19 EPS for the current year.

Ally Financial Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Shareholders of record on Friday, July 31st will be paid a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 2.7%. The ex-dividend date is Friday, July 31st. Ally Financial's payout ratio is presently 28.30%.

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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