Wall Street Zen Downgrades Ally Financial (NYSE:ALLY) to Hold

Key Points

• Wall Street Zen downgraded Ally Financial (NYSE:ALLY) from a "buy" to a hold rating.
• Despite the downgrade, analysts remain largely positive—13 Buys vs. 3 Holds—with a consensus Moderate Buy and an average target price of $54.14 (individual targets range roughly $48–$56).
• Ally reported an earnings beat (Q: EPS $1.11 vs. $0.93 estimate) and revenue up 36.4% to $2.18B; the stock trades near $43.38 and an insider recently sold about 39,675 shares.

Ally Financial (NYSE:ALLY - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Sunday.

Several other research firms have also weighed in on ALLY. Morgan Stanley upped their price target on Ally Financial from $53.00 to $55.00 and gave the company an "overweight" rating in a research report on Monday, April 20th. Evercore restated an "outperform" rating and issued a $54.00 target price on shares of Ally Financial in a research note on Tuesday, April 21st. UBS Group set a $48.00 price target on Ally Financial in a research note on Monday, January 12th. The Goldman Sachs Group increased their target price on Ally Financial from $50.00 to $56.00 and gave the company a "buy" rating in a research note on Monday, April 20th. Finally, Royal Bank Of Canada restated an "outperform" rating and set a $52.00 target price on shares of Ally Financial in a research note on Monday, January 12th. Thirteen investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $54.14.

Ally Financial Stock Down 2.3%

ALLY opened at $43.38 on Friday. The business's fifty day moving average is $40.63 and its two-hundred day moving average is $41.66. The company has a market cap of $13.36 billion, a price-to-earnings ratio of 10.58, a PEG ratio of 0.26 and a beta of 1.12. The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.93 and a current ratio of 0.93. Ally Financial has a one year low of $32.28 and a one year high of $47.27.

Ally Financial (NYSE:ALLY - Get Free Report) last announced its earnings results on Friday, April 17th. The financial services provider reported $1.11 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.93 by $0.18. The company had revenue of $2.18 billion for the quarter, compared to analyst estimates of $2.14 billion. Ally Financial had a return on equity of 11.41% and a net margin of 16.47%.Ally Financial's revenue for the quarter was up 36.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.58 earnings per share. Analysts anticipate that Ally Financial will post 5.3 EPS for the current fiscal year.

Insider Activity at Ally Financial

In related news, insider Douglas R. Timmerman sold 39,675 shares of the firm's stock in a transaction on Friday, April 17th. The stock was sold at an average price of $45.17, for a total transaction of $1,792,119.75. Following the completion of the sale, the insider directly owned 477,627 shares of the company's stock, valued at $21,574,411.59. This trade represents a 7.67% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.46% of the stock is owned by company insiders.

Institutional Investors Weigh In On Ally Financial

A number of hedge funds and other institutional investors have recently bought and sold shares of ALLY. Citizens Financial Group Inc. RI acquired a new position in shares of Ally Financial during the first quarter valued at $318,000. Fifth Third Bancorp lifted its holdings in Ally Financial by 6,419.3% during the first quarter. Fifth Third Bancorp now owns 158,549 shares of the financial services provider's stock worth $6,220,000 after acquiring an additional 156,117 shares in the last quarter. Barnett & Company Inc. lifted its holdings in Ally Financial by 2.3% during the first quarter. Barnett & Company Inc. now owns 44,725 shares of the financial services provider's stock worth $1,755,000 after acquiring an additional 1,000 shares in the last quarter. Waterfront Wealth Inc. lifted its holdings in Ally Financial by 6.4% during the first quarter. Waterfront Wealth Inc. now owns 51,905 shares of the financial services provider's stock worth $2,036,000 after acquiring an additional 3,121 shares in the last quarter. Finally, Oregon Public Employees Retirement Fund lifted its holdings in Ally Financial by 3.5% during the first quarter. Oregon Public Employees Retirement Fund now owns 57,612 shares of the financial services provider's stock worth $2,260,000 after acquiring an additional 1,940 shares in the last quarter. 88.76% of the stock is owned by institutional investors and hedge funds.

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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