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

Key Points

• Unusually high options activity: Traders purchased 26,892 call options on Ally Financial, 466% above its average daily call volume.
• Shares declined modestly: ALLY fell 0.5% to $37.63, while the company reported quarterly revenue above estimates but narrowly missed earnings expectations.
• Analysts remain positive: The stock has a consensus “Moderate Buy” rating and an average price target of $52.27, alongside a quarterly dividend of $0.30 per share.

Ally Financial Inc. (NYSE:ALLY - Get Free Report) was the target of unusually large options trading activity on Wednesday. Traders bought 26,892 call options on the company. This represents an increase of 466% compared to the average daily volume of 4,748 call options.

Ally Financial Trading Down 0.5%

ALLY traded down $0.18 on Wednesday, hitting $37.63. 4,752,079 shares of the company were exchanged, compared to its average volume of 3,383,964. The company has a debt-to-equity ratio of 1.26, a quick ratio of 0.92 and a current ratio of 0.92. Ally Financial has a 12 month low of $35.92 and a 12 month high of $47.29. The stock has a market capitalization of $11.45 billion, a PE ratio of 8.87, a price-to-earnings-growth ratio of 0.24 and a beta of 1.09. The firm has a fifty day simple moving average of $42.31 and a two-hundred day simple moving average of $42.74.

Ally Financial (NYSE:ALLY - Get Free Report) last posted its quarterly earnings results 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). The firm had revenue of $2.28 billion for the quarter, compared to the consensus estimate of $2.22 billion. Ally Financial had a net margin of 16.75% and a return on equity of 11.75%. The company's quarterly revenue was up 9.8% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.99 earnings per share. Sell-side analysts expect that Ally Financial will post 5.17 earnings per share for the current year.

Ally Financial Announces Dividend

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. This represents a $1.20 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date was Friday, July 31st. Ally Financial's dividend payout ratio (DPR) is currently 28.30%.

Insider Activity

In other news, insider Stephanie Richard sold 5,000 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The stock was 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 $3,933,241.21. The trade was a 5.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.46% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. QRG Capital Management Inc. grew its holdings in shares of Ally Financial by 7.4% during the 2nd quarter. QRG Capital Management Inc. now owns 17,869 shares of the financial services provider's stock worth $821,000 after acquiring an additional 1,234 shares during the period. Sequoia Financial Advisors LLC increased its holdings in shares of Ally Financial by 4.3% during the second quarter. Sequoia Financial Advisors LLC now owns 13,197 shares of the financial services provider's stock valued at $606,000 after acquiring an additional 547 shares in the last quarter. Cahill Financial Advisors Inc. purchased a new position in Ally Financial in the second quarter worth about $220,000. Integrated Wealth Concepts LLC raised its holdings in Ally Financial by 2.0% in the 2nd quarter. Integrated Wealth Concepts LLC now owns 50,534 shares of the financial services provider's stock worth $2,322,000 after acquiring an additional 969 shares during the last quarter. Finally, NewEdge Advisors LLC lifted its holdings in shares of Ally Financial by 422.0% during the second quarter. NewEdge Advisors LLC now owns 8,842 shares of the financial services provider's stock valued at $406,000 after purchasing an additional 7,148 shares in the last quarter. 88.76% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on ALLY shares. Truist Financial decreased their target price on Ally Financial from $51.00 to $50.00 and set a "buy" rating for the company in a research report on Wednesday, September 23rd. Citigroup dropped their target price on Ally Financial from $58.00 to $50.00 and set a "buy" rating on the stock in a research report on Friday, September 25th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $58.00 price target on shares of Ally Financial in a report on Wednesday, July 22nd. Bank of America increased their price objective on Ally Financial from $52.00 to $53.00 and gave the stock a "buy" rating in a research report on Wednesday, July 8th. Finally, Royal Bank Of Canada boosted their target price on Ally Financial from $52.00 to $55.00 and gave the stock an "outperform" rating in a research report on Friday, July 10th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $52.27.

About Ally Financial

Ally Financial Inc NYSE: ALLY is a digital financial-services company headquartered in Detroit, Michigan. Its principal businesses include automotive financing, consumer banking, commercial finance and other lending services, primarily serving customers and businesses in the United States.

Through Ally Auto, the company provides retail installment loans and leases for new and used vehicles, along with financing and related services for automotive dealers. Ally Bank offers online checking and savings accounts, money market accounts, certificates of deposit and other deposit products.

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