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

Key Points

• Ally Financial saw unusually heavy call-option activity: Traders purchased 10,070 call options, roughly 205% above the typical daily volume.
• Institutional ownership increased significantly, with BlackRock and Berkshire Hathaway each initiating stakes and California State Teachers’ Retirement System sharply expanding its position; institutions and hedge funds own 88.76% of the stock.
• ALLY traded near $42.06, while analysts maintained a generally positive outlook with a “Moderate Buy” consensus and an average price target of $53.64. The company also pays a quarterly dividend of $0.30 per share, yielding about 2.9%.

Ally Financial Inc. (NYSE:ALLY - Get Free Report) saw some unusual options trading on Monday. Stock traders acquired 10,070 call options on the stock. This is an increase of approximately 205% compared to the typical daily volume of 3,304 call options.

Insiders Place Their Bets

In other Ally Financial news, insider Stephanie N. Richard sold 5,000 shares of the company's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $44.23, for a total value of $221,150.00. Following the completion of the transaction, the insider owned 88,927 shares of the company's stock, valued at $3,933,241.21. This represents a 5.32% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.46% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. BlackRock Inc. bought a new stake in Ally Financial in the second quarter worth approximately $1,315,659,000. Berkshire Hathaway Inc bought a new position in shares of Ally Financial during the 2nd quarter worth approximately $1,240,650,000. California State Teachers Retirement System grew its position in shares of Ally Financial by 4,362.7% during the 2nd quarter. California State Teachers Retirement System now owns 14,336,308 shares of the financial services provider's stock worth $658,753,000 after buying an additional 14,015,057 shares during the period. Wellington Management Group LLP grew its position in shares of Ally Financial by 19.5% during the 4th quarter. Wellington Management Group LLP now owns 14,271,290 shares of the financial services provider's stock worth $646,347,000 after buying an additional 2,332,610 shares during the period. Finally, Dimensional Fund Advisors LP increased its stake in shares of Ally Financial by 3.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 9,018,580 shares of the financial services provider's stock valued at $353,776,000 after acquiring an additional 309,638 shares in the last quarter. 88.76% of the stock is owned by institutional investors and hedge funds.

Ally Financial Trading Down 0.3%

Ally Financial stock traded down $0.12 during mid-day trading on Monday, hitting $42.06. 774,525 shares of the stock were exchanged, compared to its average volume of 3,450,390. The stock has a market capitalization of $12.79 billion, a price-to-earnings ratio of 9.92, a PEG ratio of 0.26 and a beta of 1.10. Ally Financial has a 12 month low of $35.92 and a 12 month high of $47.29. 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 firm's fifty day simple moving average is $44.52 and its two-hundred day simple moving average is $42.64.

Ally Financial (NYSE:ALLY - Get Free Report) last posted its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $1.21 EPS for the quarter, missing analysts' consensus estimates 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 period in the prior year, the company posted $0.99 earnings per share. The company's revenue for the quarter was up 9.8% compared to the same quarter last year. Analysts forecast that Ally Financial will post 5.19 EPS for the current year.

Ally Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Friday, July 31st were given a $0.30 dividend. The ex-dividend date of this dividend was Friday, July 31st. This represents a $1.20 annualized dividend and a dividend yield of 2.9%. Ally Financial's dividend payout ratio (DPR) is 28.30%.

Analysts Set New Price Targets

ALLY has been the topic of several recent research reports. Wall Street Zen downgraded shares of Ally Financial from a "buy" rating to a "hold" rating in a research report on Monday, June 8th. 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 note on Friday, June 26th. Bank of America lifted their price target on shares of Ally Financial from $52.00 to $53.00 and gave the stock a "buy" rating in a report on Wednesday, July 8th. Royal Bank Of Canada increased their price objective on Ally Financial from $52.00 to $55.00 and gave the company an "outperform" rating in a report on Friday, July 10th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $58.00 target price on shares of Ally Financial in a research report on Wednesday, July 22nd. Fourteen investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $53.64.

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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