Morgan Stanley Issues Positive Forecast for Ally Financial (NYSE:ALLY) Stock Price

Key Points

• Morgan Stanley raised its price target on Ally Financial to $55 from $53 and kept an overweight rating, implying roughly an 18.45% upside from the current share price.
• Ally beat expectations with quarterly EPS of $1.11 versus $0.93 and revenue of $2.18 billion, a 36.4% year‑over‑year increase.
• Insiders showed confidence—CEO Michael George Rhodes bought 23,800 shares and CFO Russell E. Hutchinson bought 11,566 shares in recent transactions.

Ally Financial (NYSE:ALLY - Get Free Report) had its price target increased by analysts at Morgan Stanley from $53.00 to $55.00 in a research report issued on Monday,Benzinga reports. The brokerage currently has an "overweight" rating on the financial services provider's stock. Morgan Stanley's price objective would indicate a potential upside of 18.45% from the company's current price.

ALLY has been the subject of several other research reports. BTIG Research restated a "neutral" rating on shares of Ally Financial in a research note on Tuesday, January 6th. Evercore lowered their price objective on shares of Ally Financial from $53.00 to $51.00 and set an "outperform" rating on the stock in a research report on Thursday, February 5th. UBS Group set a $48.00 price objective on shares of Ally Financial in a research note on Monday, January 12th. Barclays upped their price objective on shares of Ally Financial from $54.00 to $56.00 and gave the stock an "equal weight" rating in a research report on Monday. Finally, JPMorgan Chase & Co. lowered their target price on shares of Ally Financial from $48.00 to $46.00 and set an "overweight" rating on the stock in a report on Thursday, April 9th. Thirteen analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $53.64.

Ally Financial Stock Performance

Shares of Ally Financial stock traded up $1.07 during trading on Monday, reaching $46.43. The company's stock had a trading volume of 283,086 shares, compared to its average volume of 3,790,316. The firm has a market cap of $14.30 billion, a PE ratio of 11.31, a P/E/G ratio of 0.23 and a beta of 1.14. The company has a 50-day moving average price of $40.03 and a two-hundred day moving average price of $41.30. The company has a current ratio of 0.93, a quick ratio of 0.93 and a debt-to-equity ratio of 1.31. Ally Financial has a fifty-two week low of $29.91 and a fifty-two week high of $47.27.

Ally Financial (NYSE:ALLY - Get Free Report) last posted its quarterly earnings data on Friday, April 17th. The financial services provider reported $1.11 EPS for the quarter, beating the consensus estimate of $0.93 by $0.18. Ally Financial had a return on equity of 11.41% and a net margin of 16.47%.The firm had revenue of $2.18 billion during the quarter, compared to the consensus estimate of $2.14 billion. During the same period in the prior year, the business earned $0.58 EPS. The firm's revenue was up 36.4% compared to the same quarter last year. On average, analysts forecast that Ally Financial will post 3.57 EPS for the current year.

Insiders Place Their Bets

In other Ally Financial news, CEO Michael George Rhodes acquired 23,800 shares of the business's stock in a transaction on Friday, January 23rd. The stock was purchased at an average price of $41.68 per share, for a total transaction of $991,984.00. Following the completion of the transaction, the chief executive officer owned 49,434 shares of the company's stock, valued at $2,060,409.12. The trade was a 92.85% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Russell E. Hutchinson bought 11,566 shares of Ally Financial stock in a transaction on Tuesday, January 27th. The stock was acquired at an average cost 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 position. The SEC filing for this purchase provides additional information. Corporate insiders own 0.46% of the company's stock.

Institutional Trading of Ally Financial

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Fifth Third Wealth Advisors LLC grew its position in Ally Financial by 3.1% during the first quarter. Fifth Third Wealth Advisors LLC now owns 8,010 shares of the financial services provider's stock worth $314,000 after buying an additional 243 shares during the period. Brown Brothers Harriman & Co. increased its holdings in Ally Financial by 31.5% in the fourth quarter. Brown Brothers Harriman & Co. now owns 1,052 shares of the financial services provider's stock valued at $48,000 after buying an additional 252 shares in the last quarter. Sweeney & Michel LLC lifted its position in shares of Ally Financial by 4.0% during the 3rd quarter. Sweeney & Michel LLC now owns 6,663 shares of the financial services provider's stock valued at $246,000 after acquiring an additional 256 shares during the period. Triumph Capital Management lifted its position in shares of Ally Financial by 9.2% during the 4th quarter. Triumph Capital Management now owns 3,133 shares of the financial services provider's stock valued at $142,000 after acquiring an additional 265 shares during the period. Finally, Larson Financial Group LLC boosted its stake in shares of Ally Financial by 25.0% during the 4th quarter. Larson Financial Group LLC now owns 1,340 shares of the financial services provider's stock worth $61,000 after acquiring an additional 268 shares in the last quarter. Institutional investors and hedge funds own 88.76% of the company's stock.

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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