Ally Financial Target of Unusually Large Options Trading (NYSE:ALLY)

Key Points

• Options activity surged: Investors purchased 7,874 put options on Ally Financial, roughly double the average volume of 3,936 contracts.
• Analysts remain broadly bullish: Ally has a consensus “Moderate Buy” rating and an average price target of $53.73, compared with a recent share price of $42.15.
• Financial performance and shareholder returns: The company reported $2.28 billion in quarterly revenue, up 9.8% year over year, while narrowly missing EPS estimates; it also pays a quarterly dividend of $0.30 per share, yielding about 2.8%.

Ally Financial Inc. (NYSE:ALLY - Get Free Report) saw unusually large options trading on Friday. Stock investors purchased 7,874 put options on the company. This represents an increase of 100% compared to the average volume of 3,936 put options.

Wall Street Analyst Weigh In

ALLY has been the subject of several recent research reports. Raymond James Financial started coverage on Ally Financial in a report on Tuesday, September 1st. They set a "strong-buy" rating and a $55.00 price target for the company. Royal Bank Of Canada increased their target price on shares of Ally Financial from $52.00 to $55.00 and gave the company an "outperform" rating in a report on Friday, July 10th. Wells Fargo & Company raised their price target on shares of Ally Financial from $52.00 to $55.00 and gave the company an "overweight" rating in a research report on Friday, June 26th. Truist Financial cut their price target on shares of Ally Financial from $54.00 to $51.00 and set a "buy" rating on the stock in a report on Tuesday, August 4th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $58.00 price objective on shares of Ally Financial in a research report on Wednesday, July 22nd. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $53.73.

Ally Financial Stock Performance

ALLY stock traded down $0.03 during midday trading on Friday, hitting $42.15. The company's stock had a trading volume of 2,013,916 shares, compared to its average volume of 3,433,225. The stock's 50-day moving average price is $43.92 and its 200 day moving average price is $42.71. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 1.26. Ally Financial has a 1 year low of $35.92 and a 1 year high of $47.29. The stock has a market cap of $12.82 billion, a price-to-earnings ratio of 9.93, a PEG ratio of 0.26 and a beta of 1.09.

Ally Financial (NYSE:ALLY - Get Free Report) last announced its earnings results on Tuesday, July 21st. The financial services provider reported $1.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.22 by ($0.01). The business had revenue of $2.28 billion for the quarter, compared to analysts' expectations of $2.22 billion. Ally Financial had a net margin of 16.75% and a return on equity of 11.75%. The company's revenue for the quarter was up 9.8% compared to the same quarter last year. During the same period in the prior year, the business earned $0.99 earnings per share. On average, equities analysts forecast that Ally Financial will post 5.2 EPS for the current year.

Ally Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Friday, July 31st were issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date was Friday, July 31st. Ally Financial's dividend payout ratio (DPR) is 28.30%.

Insider Buying and Selling

In other Ally Financial news, insider Stephanie Richard sold 5,000 shares of the business's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $44.23, for a total transaction of $221,150.00. Following the completion of the sale, the insider owned 88,927 shares in the company, valued at approximately $3,933,241.21. The trade was a 5.32% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Company insiders own 0.46% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Fideuram Asset Management Ireland dac bought a new stake in shares of Ally Financial in the 4th quarter worth approximately $35,000. Trust Co. of Vermont purchased a new stake in Ally Financial in the second quarter worth $36,000. Safe Harbor Fiduciary LLC purchased a new stake in Ally Financial in the fourth quarter worth $37,000. Harvest Fund Management Co. Ltd bought a new stake in shares of Ally Financial in the fourth quarter valued at $38,000. Finally, SJS Investment Consulting Inc. raised its stake in shares of Ally Financial by 30.8% in the first quarter. SJS Investment Consulting Inc. now owns 1,019 shares of the financial services provider's stock valued at $40,000 after buying an additional 240 shares during the period. 88.76% of the stock is currently owned by hedge funds and other institutional investors.

About Ally Financial

Ally Financial Inc is a digital financial services company headquartered in Detroit, Michigan. Through its subsidiaries, the company provides consumer and commercial financial products, with a primary focus on automotive financing and digital banking.

Ally's automotive business offers retail installment sales contracts, consumer loans and leasing products through a network of automotive dealers. The company also provides dealer financing and related commercial lending services. Through Ally Bank, it offers deposit accounts, personal loans, mortgage products and other banking services, while Ally Invest provides self-directed investment and brokerage services to individuals.

The company serves customers primarily in the United States through digital platforms, dealer relationships and other distribution channels.

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